1. Synergrid May 26, 2009 European gas supply Jean-Claude Depail Senior Vice President and Chief Operating Officer, Global Gas & LNG

2. 2 Table of contents Key issues in gas supply / demand Challenges Supply policy

3. 3 Gas demand A globally contrasted evolution Source: GDF SUEZ, CERA

4. 4 Gas demand Europe: on the long term, growth is expected despite some uncertainties The main driver for gas demand in Europe remains power generation, as gas is a flexible energy and the cleanest of fossil fuels Impact of the present recession could be strong but probably not as strong as impacts on other markets Despite impact of current economic crisis, energy demand in Europe is structurally rising: Global Insight estimates natural gas demand to grow at CAGR +1.1% over 2008-2030 Gas has a key role to play in the European energy mix, particularly within the new environmental framework Source: GDF SUEZ, Global Insight

5. 5 Gas supply Economically accessible reserves to Europe Source : GDF SUEZ, BP Statistical Review 2008 Nigéria 5,3 Tm 3 (3 %) Trinidad 0,5 Tm 3 (0,3 %) Egypte 2 Tm 3 (1,2 %) Libye 1,5 Tm 3 (0,8 %) Algérie 4,5 Tm 3 (2,5 %) Pays Bas 1,25 Tm 3 (0,7 %) Norvège 3 Tm 3 (1,7 %) Emirats Arabes Unis 6 Tm 3 (3,4 %) Oman 0,3 Tm 3 (0,4 %) Iran 28 Tm 3 (16 %) CEI 53,5 Tm 3 (30 % des réserves totales) Vénézuela 5,1 Tm 3 (3 %) Qatar 26 Tm3 (14 %) World proven reserves : 177 Tm 3 (60 years of current production) Nearly 80% of proven reserves are accessible within a 7000 km radius of Europe

6. 6 Gas supply Unconventional Gas - North America, FSU and Asia Pacific having largest potential Global gas in place by region, tcm **Conventional reserve estimates : ~150 Bcm Source:Kawata, Yuko and Fujita, Kazuo. 2001. Some Predictions of Possible Unconventional Hydrocarbon Availability Until 2100, Masters et al. USGS 1993, BP statistical review ESTIMATES 112 20 CBM Tight gas Shale gas Conventional gas 20 70 122 175 20 10 0 40 110 10 15 Europe FSU M. East & N. Africa Asia / Pacific Sub-Saharan Africa Latin America North America. Values are extrapolated from geology analogs and need to be used with caution Reserves are not easy to be deducted as unconventional gas is only developed in some parts of the world (US mainly) and the technology is yet to be matured and transferred. Economic viability to be proved in many cases At present time, gas recoverable from unconventional plays is of the same order of magnitude than conventional reserves (**)

7. 7 Gas supply Europe: LNG to fill the gap European pipe imports face uncertainties: From Russia: Growth of domestic demand in Russia Implementation of energy efficiency improvements: potential for savings evaluated at 172-187 bcm by the Russian Gas Association Capacity for Russia to finance new infrastructures to export its production (Yamal 2012, Shtokman 2018) and to stimulate the independent producers? Imports from Central Asia subject to infrastructure development Development of supply route to Asia? From Algeria: Uncertainties in gross production profile Internal demand increase subject to economic development and political choices From the Caspian Sea: Important reserves and export potential, subject to infrastructure and geopolitical choices Europe is increasingly depending on imports for natural gas, due to the declining domestic production The European market may need new LNG infrastructures (high uncertainty on the level of demand) in order to compensate for the decline of the indigenous production Source: GDF SUEZ, Global Insight, CERA

8. 8 Table of contents Key issues in gas supply / demand Challenges Supply policy

9. 9 A diversification of supply sources, routes and delivery points More than 10 suppliers Except Norway (23%), each supplier does not exceed a 15% market share Development in E&P (704 Mboe in reserves at end 2008) Abundance of delivery points (LNG+pipelines) LNG supply represents about 20% of the total supply Contracts/Market diversification Adequate balance between long term contracts, short term contracts and market purchases Short term provides flexibility that fosters risk management Supply policy Diversified supply portfolio Norway 23% Algeria 11% Russia 14% Trinidad and Tobago 8% Egypt 6% Libya 2% United Kingdom 4% Netherlands 15% 909 TWh Middle East-Asia* 12% Others 5% Contractual terms Duration of long term contracts tends to reduce Indexation mechanism tends to be reassessed

10. 10 Supply policy Key positions for supplying Europe Trinidad & Tobago Long-term supply in natural gas Natural gas flow toward GDF SUEZ markets Yemen (from 2009) Nigeria Norway (Snøhvit) Transport Booked capacity Interconnections Storage Russia NorwayAlgeria Libya EgyptUKGermanyNetherlands

11. 11 Supply policy GDF SUEZ, global leader in LNG with significant upstream positions 15 LNG tankers (+5 under construction) Rabaska Sabine Pass Isle of Grain Idku Montoir-de-Bretagne Fos-sur-Mer Kochi Cartagena Triton South Korea Japan India Greece Spain USA Mexico Atlantic LNG (Trinidad & Tobago) Brass NLNG Dahej Singapore Mejillones Everett Neptune Penuelas* Yemen LNG Freeport Algeria Nigeria Egypt Norway Zeebrugge Huelva Snøhvit Skikda Arzew Bethioua Regas Liquefaction Under Under Construction Construction Existing Capacity Project Existing Project Capacity & Equity Equity only * Penuelas : access due to a LT sale contract Ivory Coast UK D NL LNG Long-term supply Spot sales (2008) 2P reserves : 704 Mboe 1 st LNG European importer E&P Licenses Exploration Exploration and/or Production

12. 12 Table of contents Key issues in gas supply / demand Challenges Supply policy

13. 13 Renew partnerships between players: Establish a new cooperation between the European players Europe and Russia are still indispensable partners to each other But need to establish a new relationship to strengthen “gas’ brand” as a reliable energy Keep on diversifying supply routes and sources: By continuing to develop LNG along the whole chain; this will require to deal with the geopolitical risks of future exporting countries; the competition of other players (US majors, China, Japan, India) By developing new supply routes the recent Russia-Ukraine gas crisis proves the need to diversify supply routes different projects: Nord Stream, Nabucco, South Stream… Beyond LNG and Russian gas, Europe will need to develop new supply projects For instance around the Caspian sea? In Iran? But Europe will need to face the competition of India, Pakistan, China and Russia for these resources; Transit issues still need to be resolved  To meet those challenges, Europe will need to rely on its energy players, whose expertise and financial power are essential;  European legislation must be adapted to those challenges;  Political interference should be reduced to the minimum; cooperation and partnerships with producers should be reached on an industrial basis. Challenges ahead

14. 14 Together, let’s rediscover energy