CORPORATE PROFILE

PETRONET LNG LIMITED

FEBRUARY, 2013

OVERVIEW

�Global & India’s Primary Energy ConsumptionScenario

�India’s Gas Scenario, Infrastructure

�Role of LNG in India

�About Petronet’s�About Petronet’s

� Dahej & Kochi Terminals

� New Initiatives

� Performance

PRIMARY ENERGY CONSUMPTION (MTOE) - WORLD

Fuel 2005 % 2011 %

Oil 3901 37 4059 33

Gas 2501 24 2954 24

36%

23%

28%

6%6% 1%

Oil

Gas

Coal

Nuclear

Hydro

Year 2005

Source : BP Statistical Review-June 2012

Coal 2982 28 3724 30

Nuclear 627 6 599 5

Hydro 662 6 791 6

Renewables 84 1 195 2

Total 10537 100 12322 100

23%Renewables

33%

24%

30%

5%6% 2% Oil

Gas

Coal

Nuclear

Hydro

Renewables

Year 2011

PRIMARY ENERGY CONSUMPTION (MTOE) - INDIA

Year 2005

Fuel 2005 % 2011 %

Oil 120 33 162 29

Gas 32 9 55 10

Coal 184 51 296 53

33%

9%50%

1%6% 1%

Oil

Gas

Coal

Nuclear

Hydro

Renewables

Source : BP Statistical Review-June 2012

Coal 184 51 296 53

Nuclear 4 1 7 1

Hydro 22 6 30 5

Renewables 2.0 1 9.0 2

Total 364 100 559 100

Renewables

29%

10%53%

1% 5%2%Oil

Gas

Coal

Nuclear

Hydro

Renewables

Year 2011

INDIA – A MAJOR GAS/LNG CONSUMER

� 13th largest gas consumer – 61 BCM (~165 MMSCMD)

� 5th largest LNG importer – 17 BCM (~46 MMSCMD)

� Economy growing at CAGR of 6-7% with similar growthin Energy Consumption

� Share of Natural Gas in Indian Energy basket to increase� Share of Natural Gas in Indian Energy basket to increasefrom 11% to 20% by 2025

� Despite increase in domestic gas production-dependency on imported gas to increase substantially

� Pipeline network- developing into a national grid- needsto grow faster, connecting new markets

CURRENT GAS DEMAND & DOMESTIC SUPPLY SCENARIO

442

625

713.5

600

700

800

900

1000 Demand Domestic Supply

(12.7)

(15.7)

(22.2)

(25.3)

(MMSCMD)(Bcf/day)

Source : Vision 2030, Natural Gas Infrastructure in India

101.1 102.5 111.26 120.63156.7 172.2

211.79 231.42227 248272

307

358

0

100

200

300

400

500

2012-13 2013-14 2014-15 2015-16 2016-17 2019-20 2026-27 2029-30

(8.0) (8.8)(9.6)

(10.9)

(3.6) (3.6) (3.9) (4.3)(5.6) (6.1)

(7.5) (8.2)

SECTOR WISE PROJECTED GAS DEMAND

Gas Demand (MMSCMD)

0

20

40

60

80

100

120

140 Power

Fertilizer

City Gas

Industrial

Petchem/ Refineries / Interal Cons.

Sponge/ Iron/ Steel

Source : Vision 2030, Natural Gas Infrastructure in India

2012-13 2013-14 2014-15 2015-16 2016-17 2019-20

Power 67.2 72.9 80.91 91.39 102.38 121.08

Fertilizer 56.51 63.21 74.75 87.25 94.05 107.47

City Gas 15.3 16.22 17.19 18.22 22.32 35.94

Industrial 20 20 22 25 27 35

Petchem/ Refineries /

Internal Cons. 38.37 40.29 42.3 44.41 46.64 53.99

Sponge/ Iron/ Steel 7 8 8 8 8 10

Total 204.38 220.62 245.15 274.27 300.39 363.47

02012-13 2013-14 2014-15 2015-16 2016-17 2019-20

Sponge/ Iron/ Steel

311

388

27659

17125

19

230

Gas demand and supply, 2015Mmscmd, at customer gate prices

LARGE DEMAND BUT SENSITIVE TO PRICE

SOURCE: Indianpetro; DGH; Company annual reports; Expert interviews; McKinsey analysis

High Potential demand, 2015

Price of $8-10 mmbtu

Medium Price of $11-12/ mmbtu

Price of $13-14/ mmbtu

Price of $16-17/ mmbtu

Low2010 year end consumption

1 Based on estimated LNG supply of 8 mtpa in 2015 including RasGas (7.5 mtpa) and 1.5 mtpa from Gorgon LNG in 2015

21 3 4

Imports

Domestic supplies

Sectors with demand

▪ Industries▪ CNG

transport

▪ Refineries▪ Industries ▪ Power

cogen

▪ Peaking power plants

▪ Base load power

▪ New fertilizer plants

Prices at Crude of $ 100/Bbl

INDIA’S GAS INFRASTRUCTUREExisting P/L Network : 13000 KMS (330 MMSCMD)Proposed additional P/L Network :13500 KMS (330 MMSCMD) by 2016-17

Dahej LNG

Terminal

Kochi LNG Terminal

Gangavaram LNG Terminal

Hazira LNG

Terminal

Dabhol LNG

Terminal

LNG IN INDIA

� Hydrocarbon Vision 2025’ envisaged a GDP growth of 5-6% for

the E&P sector along with demand supply scenario of oil & gas in

the Country

� Current GDP growth of 6-7% translate into overall energy

demand growth at CAGR of around 6.50%

� Given India’s growing energy requirements & unlikelihood ofGiven India’s growing energy requirements & unlikelihood of

matching increase in the domestic supplies, despite some

significant oil & gas finds recently, the import dependence is

only going to accentuate sharply in the coming years

� LNG Regas Capacities

� Presently, India’s LNG import capacity around 13.5 Mmtpa

through 2 terminals & meeting approx. 30% of total gas

supply of the country

PETRONET LNG LIMITED

� Incorporated on April 2, 1998

� Authorized Capital USD 240 Million, Paid up capital USD 150 Million

� Commencement of Commercial Operations - April, 2004

� Equity

� 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL )� 50% held by Oil & Gas PSUs (ONGC, IOC, BPCL & GAIL )� 10% held by GDFI (part of GDF SUEZ)� 5.20% ADB

VisionVision

To be a key energy provider to the nation by leveraging unique position in the LNG value-chain with international presence

Revenue grew 31.5%EBITDA growth 24%

TOWARDS THE VISION

�� Create and manage worldCreate and manage world--class LNG class LNG infrastructureinfrastructure

�� Pursue synergistic business Pursue synergistic business opportunities opportunities

Continue excellence in LNG business Continue excellence in LNG business

Business StrategyBusiness Strategy

(All Values in USD Million)

5000 4539Revenue EBIDTA�� Continue excellence in LNG business Continue excellence in LNG business

- Focus on higher capacity utilization and better operational efficiencies

- Diversify LNG sources

�� Diversify businessDiversify business

- Gas-based power generation

- Venture into city-gas distribution/ direct marketing to far-flung consumers

- Solid cargo port at Dahej

�� Maintain highest standards of business Maintain highest standards of business ethics ethics

0500

1000

150020002500

300035004000

45005000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

11021311

16862130

2639

4539

137 184 196 189 257 383

Revenue EBIDTA

DAHEJ LNG TERMINAL

� Located at West Coast, State of Gujarat in the Gulf ofCambay

� Commencement of Operations in 2004

� Capacity (Mmtpa) : 5.0 10.0

� Truck Loading facility can handle 2500 loadings/ yr.

LNG Cargoes unloaded:1000thCargo scheduled in Feb, 2013� LNG Cargoes unloaded:1000thCargo scheduled in Feb, 2013

� Further capacity expansion to 15 Mmtpa

� Second Jetty : Under ConstructionRegas & Storage Capacity : DFR Completed

� Pre Project Activities started, FEED under preparation

DAHEJ LNG STORAGE TANKS

DAHEJ REGAS FACILITIES WITH AIR -HEATER

VAPORISATION FACILITIESLNG BY ROAD

SATELLITE LNG HUB & LNG BY ROAD

SATELLITE HUB

KOCHI TERMINAL KOCHI TERMINAL

KOCHI TERMINAL

� LNG Terminal located in Special Economic Zone with Co-developer status

� Capacity 5.0 Mmtpa

� Tied up 1.44 MMTPA LNG from Exxon Mobil’s Gorgon Project

� Two Storage Tanks constructed by IHI, Japan – Mechanically

KOCHI LNG TERMINAL

� Two Storage Tanks constructed by IHI, Japan – Mechanicallycommissioned

� Regasification Facilities being constructed by CTCI, Taiwan

� Marine Facilities being constructed by Afcons Infrastructure Ltd

� Progress on schedule, overall completion approximate98%, scheduled commissioning around early 2013.

LNG STORAGE TANKS

KOCHI - MARINE FACILITIES

NEW THIRD TERMINAL AT EAST COAST

� Proposed Capacity: 5 Mmtpa

� Location: Gangavaram, Andhra

Pradesh

� Regasification Scheme: Indirect� Regasification Scheme: Indirect

Fluid using ambient air heater

� DFR completed

� FEED in progress

� Estimated Project cost: USD 900

Million

Gangavaram

� LNG terminal to be developed as SPV with GPL as partner

� Environment clearance applied for

� 5 MMTPA onshore terminal proposed to be commissioned in2016

� Facilities to include 2 Storage tanks, marine & regasification

STATUS OF GANGAVARAM TERMINAL

� Facilities to include 2 Storage tanks, marine & regasificationfacilities

� To commence earlier supplies, FSRU option being examinedthrough which supplies can commence end 2014

� Connectivity with East West and Mallavaram-Bhilwara pipelineis being explored

� Petronet also in discussion with major anchor consumers forlaying local network connecting Vizag region

GANGAVARAM

Proposed berth location

Proposed land for plant sitting

INTEGRATED POWER PLANT AT DAHEJ & KOCHI

� Proposed power plants of 3x356 MW-ISO (total 1068 MW CCGT)with improved performance, the expected output is 1200 MW

� Fuel requirement of 1.0~1.1 Mmtpa LNG for each Plant

� Implementation schedule

� 12~15 months for pre-development activities� 12~15 months for pre-development activities

� 33 months for construction and commissioning

� DFR for a 1200 MW Power Plant – completed for Dahej

� Land Identification at Kochi under progress

� Power project to harness cold energy from LNG Terminal

DIRECT MARKETING

� Petronet exploring opportunities to supply LNG to Coastalarea consumers through small LNG Vessels in India andneighbouring countries

� Direct Marketing by focusing on the following areas:

� Signed HOAs with bulk end consumers in Power, Refineries& Fertilizers Sectors& Fertilizers Sectors

� LNG/LCNG supplies through Trucks, to LNG hubs, SatelliteStations at customer’s premises in regions not serviced bypipelines under the Brand name of

BUSINESS MODEL

� Robust Model

� LNG supply contract with RasGas, Qatar & Exxon Mobil, Australia

� Gas Sales Agreement with GAIL, IOCL & BPCL back to back with SPA

� Time Charter Agreement with established consortium

Entire Fuel cost pass through including exchange rate� Entire Fuel cost pass through including exchange rate

� Location

� Proximity to LNG suppliers

� Most competitive LNG transportation cost

� Proximity to Customers – HBJ, DUPL and GSPC network in Gujarat

FINANCING

�Very strong parentage and a robust business model

�Financing cost is amongst the lowest in the Industry

�With the use of effective hedging techniques, theCompany has been able to maintain a low cost ofCompany has been able to maintain a low cost ofdebt service even in such turbulent times

�The average cost of debt is 9.49% p.a. in INR terms

PERFORMANCE GRAPH

290322 321

400440

548

403

300

400

500

600

Sales/ Service TBTU

431

486

583

652

400

500

600

700

Net Worth USD Million

125

247290

0

100

200

300

191233

277

352

0

100

200

300

400

PERFORMANCE GRAPH

2639.4

4539 4600

3000

3500

4000

4500

5000

Turnover USD Million

124

212

181

150

200

250

PAT USD Million

389

767.41101.8

1311

1685.8

2129.8

2639.4

0

500

1000

1500

2000

2500

-6

39

63

95104

81

124

-50

0

50

100

FINANCIAL PARAMETERS

0.54 0.921.24 0.94

1.46

0.80

1.64

2.46

3.04

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Share Market Price USD

Earning Per Share (USD)

Year EPS (USD) P/E D/E

2006-07 0.08 23.99 1.08

2007-08 0.13 11.15 0.97

2008-09 0.14 11.62 1.15

2009-10 0.11 5.75 1.12

2010-11 0.17 15.19 1.20

2011-12 0.28 9.29 0.93

31.12.12 0.34 10.25 0.70

0.002004 2005 2006 2007 2008 2009 2010 2011 Current

FINANCING STRUCTURE

(USD MILLIONS)(USD MILLIONS)

Particulars Dahej Terminal

Kochi Terminal

2nd Berth Dahej

Dahej Expansion

Total

Shareholders Fund Equity Capital/ Internal Accruals/ Premium

203 252 56 186 697

The existing debt equity ratio is 0.7:1 ; providing enough room toleverage Balance Sheet for new projects in future.

Accruals/ Premium

Debt 487 588 131 434 1640

Total Means of Finance 690 840 187 620 2337

PERFORMANCE BASED ON EMPLOYEE PARAMETERS

2011-12 2010-11 2009-10

No. of Employees 309 276 273

Turnover/ employees (USD Million) 13.45 8.66 7.13

Profit Before Tax / Employee (USD Million) 0.91 0.66 0.36

Employee Remuneration cost as % of Profit) 2.83% 4.35% 5.69%

� Total Number of Employees as on January 2013Kochi : 103Dahej: 208Corporate: 88Total 399

� Training & Development : 6 Mandays / Employee� Average Age: 34.5 years (59% employee in 31-40 years of age)� 55% of employees are Graduates or Post Graduates (68.5% are Technical &

31.5% professional) � Average years of association of employees with Company 5.6 years� Attrition rate 2011-12 : 3.92%

Note: Exchange rate @ Rs 55/- per USD

A JOURNEY TOWARDS SUCCESS ……

� Ranking

• 46th rank in Fortune India 500

• 48th rank in Business Standard 1000

� 150th Largest Company & 301th most Profitable Company in Plimsoll

Global Analysis on Global Crude Oil & Gas Extraction Industry ranking

58

48

30

40

50

602009 2010

Rank

Year

Business Standard (BS 1000)

58

46

40

44

48

52

56

60

642010 2011

Rank

Year

Fortune India 500

CSR -THE JOURNEY HAS JUST BEGUN………TOWARDS AN INCLUSIVE SOCIETY - DAHEJ

� Participative community development programmes with GIDC in Luvara & Lakhigam villages

� CODEGAZ, the CSR arm of our strategic partner GDF Suez supports our cause.

Health & Sanitation

� Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage/solar

street lights.

� Preventive and Social medicine aids (includes primary health centre & ambulance).

Education and Employment generation programs

� Construction of School , Scholarship & Vocational Training.

� Inauguration of Petronet LNG Centre for Vocational Rehabilitation.

� Indirect employment for local villagers in the area of Housekeeping & Horticulture.

Community Development

� Renovation of personal facility & fencing at Panchayat office of Luvara Village, Gujarat.

� Participation in Govt. Devp. Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre

� Massive mangrove plantation to cover 1000 hectares by 2015-16 in consultation with Gujarat

Ecology Commission/Forest Department.

� Developing Infrastructure Facilities for displaced persons at RMP Todu Canal –

Kalamukhi Junction Rehabilitation Area in Puthuvypeen

� Renovation of Building of UPES Government School, Puthuvypeen

� Sponsored the distribution of books and other study material to nearly 70

schools of the area benefitting 22,000 students.

� Conducted Eye Screening & Cataract Operation & Dental Camp for Puthuvypeen

& neighboring villages

Sponsoring of local events like boat race, cultural and sports events in schools

CSR - THE JOURNEY HAS JUST BEGUN……….TOWARDS AN INCLUSIVE SOCIETY - KOCHI

� Sponsoring of local events like boat race, cultural and sports events in schools

� Sponsor purchase of school bus for Kerala Blind School.

Thank YouThank YouThank YouThank You