Investor Presentaiton

DIAGNOSIS OF THE GAS SECTOR Inadequate LPG Infrastructure Shipping Berthing issues at receiving depots ■ At NLNG Min. ships are 20KT while at ■ depots max. ships are 4- 8KT Significant turn around time for ship Same facilities used for petroleum products leading to de-prioritisation of LPG in off-loading Resulting in high demurrage & terminaling costs Primary Storage ☐ Poor infrastructure and obsolete equipment ■Inadequate storage both in size and integrity ■ ☐ Storage typically far from potential markets High demurrage costs Transportation Significant under- investment in the LPG trucking sector ■ Over 2500 needed ☐ 170 dedicated LPG trucks in Nigeria of which only about 100 are operational ☐ Investment has always focused on primary storage throughput only ■ Unsafe LPG transportation Secondary Storage ■ Of 80 distribution companies only 20% are still operational ■Low secondary storage investment due to dependency on other parts of the value chain i.e. no signal from supply Cylinder Bottling ■ Most of existing LPG cylinders unsafe ▪ Few large scale cylinders and bottling plants ☐ Only 120 bottling plants of which 50% are in Lagos ■Limited size ranges of LPG cylinders ■ Reduces LPG penetration to low income users who typically require smaller sized cyliners ☐ Retail ▪ High retail price N3500/12 kg bottle ■ Market largely supplied by imports

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