The best marketing instrument for Natural Gas is a happy Customer Third Asia Gas Buyers’ Summit New Delhi 14 February 2005 George H.B. Verberg, president International Gas Union

Incremental gas demand in 5 regions of the world largest liquefaction plant: 7.8 mtpa (Qatar) 60 25 2002 to 2010 2002 to 2020 IEA weo 2004 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Growth primary energy demand (2002 = 100) Includes ‘biomass and waste’, 38% of Indian primary energy! IEA weo 2004 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Third Asia Gas Buyer's Summit Febr.2005 Gas for India Pipeline gas from IRAN: through Pakistan or offshore (2775 km to New Delhi): 30 Bcm/y (IEA: not before 2030) from Bangladesh (400 bcm reserves, possibly 2,5 times more) and Myanmar (360 bcm reserves; IEA foresees 290km pipeline to India, 5 Bcm, after 2010) Requires transit contracts/fees Indian reserves: 30Tcf = 850 Bcm Some new finds recent years, will production be able to keep up with demand LNG import projects: 2 terminals in operation, more are planned 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Third Asia Gas Buyer's Summit Febr.2005 Some Trends LNG projects introduce possibility for global gas trade, like oil LNG market still small (6,5% of gas is traded as LNG, 17% through pipelines, most gas is produced and consumed within national borders) many LNG projects in execution and planned LNG-vessels on order not beiing linked to any specific project/shipping-route Markets develop to more competition and short-term contracts, regulation sets pace Commercial insecurity,should have implications for project financing, but offset by increasing gas demand in many markets In 2003: 11% of LNG traded on short-term basis 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Middle East LNG—Setting a New Global Cost Benchmark ($ per MMBtu) Source: Cambridge Energy Research Associates. 31001-10 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

LNG: connects markets, increases global competition 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Five fundamentals for the sound development of the gas industry SAFETY and Reliability of Infrastructure and Appliances, Security of Supply, Competitive Pricing, Clear Regulatory Framework Indiscriminately by Nature and in Execution, Sustainability! 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

The Gas Industry Serves the Customer! 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Customer satisfaction 1 Tokyo Gas: Deliver customers the best possible services Offer the customers comfortable living environments by effectively utilizing gas technologies Promote advanced gas utilization New business, non-gas: selling kitchen systems in addition to gas appliances and other services customer requires Increase customer satisfaction and create profitable business Enhance supply and operation structure 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Customer satisfaction 2 JD Power satisfaction survey (USA, UK) Interviews consumers Topics in interview: Customer service (weighs 5% in final judgement) Meter reading (11%) Billing and payment (11%) Image (22%) Price and value of the product (25%) Supply quality and reliability (26%) 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Customer satisfaction 3 UK, USA markets with stiffcompetition Price is prime in customer satisfaction Accuracy in billing and transparency of bill is important Japan Technology, quality and service are leading issues for customers 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Third Asia Gas Buyer's Summit Febr.2005 INTERNATIONAL GAS UNION covers >95 % of world gas sales ‘spokesman’ of the gas industry Non Members Membership from 67 countries and 18 Associated Members 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

IGU’s role and objectives Gas as the fuel of choice preceding a sustainable energy system Promotion of the gas industry as a responsible corporate citizen Promotion of technology, industry and customer focus 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

Third Asia Gas Buyer's Summit Febr.2005 Triennium 2003 - 2006 GAS: Powers the People Preserves the world Promoted by IGU BUSAN,S-Korea,May 23-25,2005, 7th Congress on Information Technology in Energy AMSTERDAM, June 5-9,2006 WORLD GAS CONFERENCE 23/02/2019 Third Asia Gas Buyer's Summit Febr.2005

See you in Amsterdam! World Gas Conference June 5 – 9 2006 Thank you See you in Amsterdam! World Gas Conference June 5 – 9 2006