The Global Integrated Model: a KeyPlayer for Value Creation JeanLuc COLONNA Senior Vice President, L

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The Global Integrated Modela Key-Player for
Value CreationJean-Luc COLONNASenior Vice
President, LNG
50 Years Experience inthe LNG Industry
Beauvais (experimental vessel) - 1958
Gaz de France energY - 2006
7th Doha Natural Gas Conference and Exhibition
9-12 March 2009
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Presence and partnerships in Qatar

• GDF SUEZ has been involved in Qatar through
  several long-term activities and major projects
  including significant investments
• 2005 Doha West sewage water treatment plant
• 2006 Doha Lusail sewage transfer and treatment
  system
• 2008 Representative Office in Doha MoU signed
  withQatar Petroleum International (QPI)
• 2008 Ras Laffan C project US 3,700 M
  investment
• Biggest independent water and power project
  (IWPP)of the country production capacity of
  2,730 MW (powerproduction) and 286,000 m3/day
  (water desalination)
• Partnership with Mitsui, Yonden, Chubu, Qatar
  Petroleumand Qatar Electricity Water Company
• 2008 Marafeq Qatar
• Multi Utility Company in the field of energy
  services (inc. districtcooling), water (inc.
  desalination), waste water, power
  transmissionand distribution, gas supply (LPG),
  solid waste, etc.
• Partnership with Qatari Diar and Barwa

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Hard times have arisen for global economy

• Financial crisis started in end 2007 and has
  worsen since then into a global economic crisis

• Developed countries will experience recession in
  2009 whereas developing countries should see a
  reduction of GDP growth rate

• Industrial production dropped steeply by the end
  of 2008

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troubled times for gas demand

• Demand reduction
• Had already been underway since 2006 high energy
  prices have made industry keenly aware of
  necessity of energy efficiency
• Widespread recession reduces current gas demand
  in the industrial and power sectors and even to a
  small extent in the domestic sector
• Decline of industrial production casts doubt on
  the rate of future gas demand growth
• Duration depth of crisis and pace of recovery
  are key-issues
• Security of supply
• Russian supply transiting via Ukraine totally
  stopped for two weeks, with major impact in
  South-Eastern Europe
• Negative impact on gas supply reputation
  questioning if gas is a reliable source of energy
• Greater consideration given to fuel diversity
  (coal, nuclear)
• Energy Efficiency and Carbon Policies
• EU and US decisions to strengthen energy
  efficiency and carbon policies could favour
  nuclear power, renewables and clean coal, and
  reduce gas demand

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Where will flexible LNG flow?

• Compared with the last 2 years, Asia will not be
  a destination for flexible LNG
• Asia will not be able to absorb all LNG coming
  on-stream in 2009-2012 (70 mtpa)
• and should not need significant spot/short-term
  supply
• Flexible LNG volumes should be more than
  sufficient to satisfy European needs
• LNG terminal capacity is available to receive
  flexible LNG
• but pipeline Take or Pay obligations limit the
  demand for flexible LNG in particular during
  summer time
• and European liquid markets are not very deep
• Therefore the remaining volumes will probably
  need to go to the US
• Deep and liquid markets
• Large idle LNG regasification capacities
• but at what price?
• Development of cheap unconventional gas means US
  does not need to import LNG
• US the 'last resort' market for LNG

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Europe, the "new" LT destination for LNG?

• Reliable gas market offering visibility, based on
  LT relationships between counterparts
• Mature low growth gas market but declining
  indigenous gas production
• Requiring increasing gas imports
• Expecting the strongest world wide medium term
  growth in LNG imports
• Europe already has LNG infrastructures that can
  handle more LNG on the short/mid term
• Spare capacity in existing terminals
• New terminals coming on stream 2009
• Expansion of existing terminals
• Renewed interest of the European Commissionand
  of several European countries
• Diversity and security of supply major issues
• Intending to promote LNG projects
• Fast-track opportunities and solutions exist
• Floating terminals, expansion of existing
  infrastructures

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GDF SUEZ Bringing confidence to the LNG business

• Strong positions all along the LNG value chain
• Worldwide Group's gas supply 100 bcm/year
• Highly diversified and stable customer base
  (geography, type of markets, indexation)
• Long-term contracts with producers
• Financial strength and creditworthiness
• Technical and commercial expertise through
• Development of some of the core technologieson
  which the LNG industry is based andcontinued
  commitment to RD
• Group investment and presence all alongthe LNG
  value chain
• Development and operation of Group's assets
• Design Engineering consultancy services to the
  LNG industry
• Ad hoc partnerships

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REDISCOVERING ENERGY