Energy Conversion and Financial Overview

LNG Refuelling Stations Development in China ENN Riding on supportive government policies and its economic benefits, market potential for LNG refuelling stations is huge 500,000 400,000 300,000 LNG vehicles adoption and forecast 387,000 150,000 52,000 58,000 200,000 100,000 100,000 28,500 62,000 2,830 8,500 34,000 36,500 2,952 13,000 0 2010 2011 2012 LNG truck 2013 258,000 2014E 2015E 2020E ■LNG passenger vehicles Forecast on LNG consumption through displacement of diesel by 2020 LNG vehicles on road Average distance travelled/vehicle/year 645,000 100,000km 50,000 m³ Average LNG consumption/vehicle/year Potential LNG consumption on road 32 bil m³ Source: SCI, ENN internal research 新奥 Favourable government policy - More provincial governments are expected to implement policies to push forward the adoption of NGVs and gas refuelling stations construction, so as to achieve carbon emission reduction targets Competitive pricing – LNG pricing is market-driven, increasing supply of LNG through import and onshore liquefaction facilities sustain its price competitiveness, LNG can be sold at a discount to substitute energies Shorter payback period - Increasing production of NGVs and related equipment by manufacturers, together with the nationwide oil product upgrade will further reduce cost difference against diesel vehicles Well-established refuelling network propels adoption of LNG vehicles - 4,000 LNG refuelling stations are expected to be built-out by ENN and peers by 2020 7

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