PERU LNG 2021 Annual Report

ANNUAL REPORT PERU LNG 2021 CHAPTER 4 OUR ORGANIZATION period stipulated in the contracts, at a rate of 670 000 million BTU (British Thermal Units) per day, in accordance with the daily quantity required. COMPETITION AND POSITIONING IN THE MARKET The main factors influencing this increase in demand are the replacement of coal by natural gas and local energy policies. It is also expected that the use of the latest technology will make a significant contribution to this growth. for example, floating storage and regasification units (FSRU) enable the regasification infrastructure to be deployed more quickly and highly competitive prices. In this context, international gas prices increased substantially in 2021 compared with the previous year, to reach historic highs. The Henry Hub spot price increased by approximately 93.5% and in contrast, NBP and JKM spot prices increased by 389 % and 324 %, respectively in the same period. TARGET MARKETS On the 1st of January 2014, Shell International Trading Middle East (SITME) replaced Repsol Comercializadora de Gas S.A. as the off-taker for PERU LNG, by means of the Third Amended and Restated LNG Sale and Purchase Agreement, entered into on the 31st of December 2013. SITME is part of the Royal Dutch Shell (RDS) group, one of the largest oil companies in the world. Shell's LNG businesses include trading and one of the largest fleets in the industry. The LNG produced in 2021 by PERU LNG and sold by SITME went principally to the United Kingdom (31%), South Korea (28%), Japan (16%), The Netherlands (7%), China (5%), other European destinations (6%) and Canada (6%). Despite the long distances involved, PERU LNG remains attractive for European and Asian markets. Monthly sales during 2021 are shown below: 18

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