A member of MUFG, a global financial group

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Financing LNG Projects and

Infrastructure

OCTOBER 2016

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Bank of Tokyo-Mitsubishi UFJ

BTMUinPhilippines• FirstestablishedpresenceinthePhilippinesin1918astheManilaBranchoftheYokohamaSpecieBank.• FullBankingservicesofferedsince1995.• FinancinginfrastructureprojectsinthePhilippinessince1993PagbilaoPowerand1997MRT3.• Acquired20%shareofSecurityBankCorporaQoninthePhilippinesin2016.

MitsubishiUFJFinancialGroup(MUFG)isoneoftheworld’sleadingfinancialgroups.MUFGaimsto“betheworld’smosttrustedfinancialgroup”BankofTokyo-MitsubishiUFJ(BTMU)isthecommercialbankunitofMUFG.BTMUisJapan'slargestandoneoftheworld'slargestcommercialbanks,withofficesthroughoutJapanand40othercountries,providingprofessionalfinancialsoluQonstoourvaluedcustomers.

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Investment Banking Division for the Americas, New York & Los Angeles

Investment Banking Division for Europe, Middle

East and Africa, London Structured Finance Division, Financial Solutions Division,

Syndication & Product Planning Division, Tokyo

Australian Structured Finance Office,

Sydney & Melbourne

Asian Investment Banking Division, Singapore &

Hong Kong

•  AsianInvestmentBankingDivision(AIBD)isheadquarteredinSingaporeandHongKong•  OurInvestmentBankingDivisionsprovideprofessionalinvestmentbankingsoluQonsto

ourclientsacrosstheglobe.

BTMUInvestmentBankingDivisionGlobalNetwork

BTMU - Asian Investment Banking Division

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BTMU as Project Finance Market Leader

Global Initial MLA League Table (2015 Full Year)

Rank Mandated lead arrangers US $ MM Share Deals

1 MUFG 16,127 5.8 143

2 SMBC 12,832 4.6 108

3 Bank of Taiwan 12,053 4.3 1

4 State Bank of India 10,855 3.9 30

5 Mizuho 8,730 3.1 79

6 Credit Agricole 8,286 3.0 90

7 ING 7,852 2.8 89

8 Santander 6,879 2.5 91

9 BNP Paribas 6,683 2.4 76

10 Societe Generale 6,568 2.4 70

Asia Pacific Initial MLA League Table (2015 Full Year) Rank Mandated lead arrangers US $ MM Share Deals

1 Bank of Taiwan 12,053 15.8 1

2 State Bank of India 10,855 14.2 30

3 MUFG 5,386 7.1 38

4 KDB 4,422 5.8 12

5 SMBC 3,667 4.8 25

6 Mizuho 2,696 3.5 23

7 Commonwealth Bank of Australia 2,630 3.5 22

8 Westpac 2,540 3.3 23

9 ANZ 2,513 3.3 21

10 National Australia Bank 1,995 2.6 26

(Source) Project Finance International (PFI)

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2014 US A 2014 Indonesia 2014 US A 2014 UnitedS tates 2014 US A 2013 US A 2012 Australia 2012 Australia

2012 US A 2012 Australia 2012 Australia 2009 P apuaNewGuinea 2009 R ussia 2008 Angola 2008 P eru 2008 Australia

2015 K orea 2014 K orea 2014 India 2014 C hina 2013 Netherlands 2013 Australia 2012 B runei 2012 Australia

2014 S ingapore 2014 Netherlands 2013 Indonesia 2012 Indonesia 2009 US A 2008 C hile

US D 16 .00 billion USD 3 .21billionUSD 4 .34 billion USD 1.54 billion USD 4 .33 billion USD 7.42 billion USD 325million USD 4 .40 billion

Ichthys LNG P tyL td Wheats toneLNG P ro jec t

F reepo rtL iquefac tion(T rain2)

D onggiS eno ro LNG F reepo rtL iquefac tion(T rain1)

C ameronLNG L LC S abineP as s L iquefac tionL LC

S abineP as s L iquefac tionL LC

J B IC /NE X ICoor dinator ,J ointLeadAr r anger andBookr unner ,Inter cr editor Agent

MLA/EC A C oordinator/Ac c ountB ank

J B IC /NE X ICoor dinator ,J ointLeadAr r anger andBookr unner ,Inter cr editor Agent

Fac ility Agent,J B IC /NEXIC oordinator

MLA ,B ookrunner J oint L eadA rranger,B ookrunner

MLA ,NEXIAgent F inanc ialAdv isor,Fac ility Agent

US D 2 .25billion USD 1.50 billionUSD 3 .63 billion USD 8 .50 billion USD 302 million USD 1.95billion USD 1.40 billion USD 450 million

P eruLNG P luto LNGS abineP as s L iquefac tion

A us traliaP ac ific LNG P ro jec t

Go rgonP ro jec t P NG LNG S akhalinIIphas e2 A ngo laLNG

J ointLeadAr r anger /Bookr unner ,Co-SyndicationAgent

MLA FA ,MLA ,Fac ility Agent,A c c ountB ank S ec urity Trustee,S wapC ounterparty

MLA NEXIAgent、ModelingB ank MandatedL eadA rranger MandatedL eadA rranger F inanc ialAdv isor,MLA andJ B IC Agent

US A 184 million J PY 16 .00 billionUSD 251million USD 1.02 B illion USD 230 million USD 787million USD 608 million USD 1.50 billion

LNG F ive(B runei)L td T rans P ac ific S hipping1L td

KOGA S LNG Ves s elR efinanc ing

KOGA S NewLNG Ves s els

P etronetLNG P ro jec tJ ourney MaltLNG R efinanc ing A P LNG T rans po rt

MandatedL eadA rranger MandatedL eadA rranger MLA MLA P art ic ipant MLA MLA MLA ,C ommerc ialB ank Fac ility Agent,A c c ountB ank

USD 1.11billionS GD 1.11billion EUR 80 million USD 310 million USD 175million USD 680 million

Quintero LNG T erminalS ingapo reLNG C o rp GA T E LNG B reakB ulk R o tterdam

P T HoeghLNG L ampung

P T Nus antaraR egas Manzanillo LNG

MLA MLA ,Documentation/C oordinationB ank

MLAS truc turingB ankDueDiligenc eB ank

MLA MandatedL eadA rranger S eniorA rranger

Our LNG Track Record Across the Value Chain

Liquefaction Transport

Regasification

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Our Expertise Proven by Industry Awards

(Source) Project Finance International (PFI), Global Finance, Euromoney, IJGlobal

Asia-Pacific’sDealoftheYear

Ichthys LNG Pty Ltd.

Australia USD16bn

Bookrunner and Mandated Lead Arranger

Asia-Pacific’sOil&GasDealoftheYear

Australia Pacific LNG

Australia USD8.5Billion

Mandated Lead Arranger

Americas’BondDealoftheYear

FPSO Cidade de Anchieta Brazil

USD 500m

LaFnAmericaUpstreamOil&GasDealoftheYear

Rating Adviser and Placement Agent

Nghi Son Refinery

Vietnam USD 5,000m

Asia-PacificPetrochemicalsDealoftheYear

Financial Advisor, MLA, DD/Modelling Bank,

Offshore Account Bank, JBIC agent

AsiaPacificOil&Gas

DealoftheYear

Donggi-Senoro LNG

Indonesia USD 1,527m

ECA Coordinator, Mandated Lead Arranger,

Security Agent, Account Bank

2014

Asia-Pacific Bank of the Year

2013

Global Bank of the Year

2012

Global Arranger

2012

Latin America Arranger

2012

North America Financial Adviser

2015

GlobalBankoftheYear

GlobalProjectFinanceBankofTheYear2015and2013/Asia-PacificProjectFinanceBankofTheYear2015

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Rationale for LNG in the Philippines

•  In 2014, the Philippines imported about half ofits total energy requirements. Reliance onimportedenergyisrisingasdomesQcproducQoncannotkeeppacewithrisingdemand.

•  DomesQc Natural Gas and Oil producQoncontributedabout6%primaryenergysupplyandsubstanQallyusedforpowergeneraQon.

•  OilandgasproducQonisprojectedtodeclineastheexisQngfieldsaredepleQng.

•  LNG Imports are a soluQon to diversify energysources and ensure security of natural gassupply.

(Source) International Energy Agency

(Source) Wood Mackenzie

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20.00

40.00

60.00

80.00

100.00

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

20

15

2016

20

17

2018

20

19

2020

20

21

2022

20

23

2024

20

25

'000 BOEPD Philippines Oil & Gas Production

Gas Production Oil Production

2014 Philippines Energy Mix

Imported Coal Imported Crude Oil Imported Oil Products Imported Biofuel Domestic Coal Domestic Oil Domestic Natural Gas Domestic Hydro Domestic Geothermal Domestic Biofuels

DomesQcEnergySupply

NaturalGas

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The entire natural gas/LNG value chain must be commercially viable and bankable.

Key Issue : Risks along the LNG Value Chain

UpstreamGasProducQon

GasLiquefacQon

LNGTransportaQon

LNGRegasificaQon

GasPipelineDistribuQon

EndUser/PowerPlant

•  LNGInfrastructureisameanstobringnaturalgastoEndUserssuchasPowerPlants.

•  LNGinfrastructureincludesLNGTransportaQonandLNGRegasificaQon.

•  LNGinfrastructureisdevelopedandoperateswithinthenaturalgasvaluechain.

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The entire natural gas/LNG value chain must be commercially viable and bankable.

Key Issue : Risks Along the LNG Value Chain

UpstreamGasProducQon

GasLiquefacQon

LNGTransportaQon

LNGRegasificaQon

GasPipelineDistribuQon

EndUser/PowerPlant

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There is a mismatch between commercial risk and the customary LNG contract structure.

Key Issue : Merchant Market Risk for Power and Slow LNG demand take up

•  PhilippinesLNGdemandisonlyexpectedtopickupfrom2022onwardsandgraduallyincreasing.TheiniQalyearsoflowuQlisaQonmaynotbeabletosupportdebtservice.

•  LNG-firedpowergeneraQonisexpectedtocostmorethancoal,hencewouldbeunabletooperateasbase-loadgeneraQon.Amid-meritLNG-firedpowerplantprofiledoesnotmatchthecustomarytake-or-payobligaQonsunderLNGSPAs.ExisQngGas-firedplantsbenefitfromPPAstosupportthegastake-or-payobligaQon.

0 0.5

1 1.5

2 2.5

3 3.5

4 4.5

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mpta Philippines Projected LNG Demand

LNG Demand

LNG Terminal Capacity

(Source) Wood Mackenzie

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Case Study : Singapore LNG

WhentheSingaporeLNGTerminalwasbeingdeveloped,thepriceofLNGwashigherthanHSFO.ExpectedrampupofdemandwasslowonaccountofexisQngGasSupplyContractswithtake-or-paycondiQons.InsupportofthedevelopmentoftheSingaporeLNGTerminalforsecurityofsupply:• Moratoriumonthefurtherimportofnaturalgas• LNGVesQngContracts• DevelopmentoftheSingaporeLNGTerminaltakenoverbytheGovernmentofSingapore.

0 1 2 3 4 5 6 7 8 9

10

2000

20

01

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

20

15

2016

20

17

2018

20

19

2020

20

21

2022

20

23

2024

20

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MPTA Singapore Projected LNG Demand

Projected LNG Demand Regasification Capacity

(Source) Wood Mackenzie

Image courtesy of Singapore LNG Corporation Pte Ltd.

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Case Study : Singapore LNG

SingaporeLNGcommencedoperaQonsinMay2013andwasofficiallyopenedinFebruary2014.InDecember2014,SingaporeLNGsecuredaSGD1.11billiontermloanfromcommercialbankstorefinanceexisQngshareholderloansoriginallyusedtofinancetheterminal.Thetermloanisunsecured,butbenefitsfromashareholderback-stopfacilityofaboutSGD300million.In2014,Singaporeimportedabout1.81mpta(2.2259MTOE)ofLNGagainstaterminalcapacityof6.0mpta.

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Case Study : Pacific Light Power Refinancing

PacificLightPower(“PLP”)isa800MWCCGToperaQnginSingapore.ShareholdersincludePetroliamNasionalBhd(30%)andFPMPowerHoldings(70%),ajointventurebetweenFirstPacificandManilaElectricCo.FaciliQesincludeda10-yearUSD700mfacility,USD230millionSBLCandUSD65millionworkingcapitalfacility.PacificLightPowercommencedoperaQonin2014andisthefirstpowerplanttobecompletelyfuelledbyLNG.

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Case Study : Pacific Light Power Refinancing

InfinancingPacificLightPower,lendershaveconsideredposiQvely• LNGVesQngcontractsthatrequiresPLPtosupplyacontractedquanQtyofelectricitybaseduponaformulaprice.• ExisQngLicensedGeneraQonCapacityoftheSingaporemarketandtheprojectedcompeQQonfromotherCCGTs• ComparaQvelyuniformgeneraQonmarkeQngcomprising75%CCGT.• LendersunderstandingoftheoperaQonofthemerchantpowermarketinSingapore.LendershavebeenfinancingpowerprojectssincetheprivaQsaQonin2008.• MoratoriumonaddiQonalPNGimports,triggeringtheuseofLNGtopricemarginalsupply.

(Source) Energy Market Authority

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Case Study : Guangdong LNG Terminal 2004

•  InOctober1998,aGuangdongLNGTerminalprojectwasgiventheiniQalgo-aheadbytheChinesegovernment.Theprojectwascomprisedofa3.3mtpaLNGimportterminalanda213kmpipelineinChentoujiao,Shenzhen,GuangdongProvince.

•  EsQmatedprojectcostwasUSD600m.

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Power Plant (Offtake 3) Power Plant

(Offtake 3) Power Plant (Offtake 3) Power Plants

Case Study : Guangdong LNG Terminal 2004

Guangdong Dapeng LNG Company Ltd

CNOOC Guangdong

Province consortium

Towngas HK Electric British Petroleum

New Built LNG Vessel SPV

STTS Group (LNG Terminal EPC

Contractor) Shipyard China Petroleum

Pipeline Engineering (Pipeline EPC Contractor)

North West Shelf Venture

(LNG Supply)

Power Plant (Offtake 1) Power Plant

(Offtake 2) Power Plants (Under Construction)

TimeCharterAgreement

PipelineEPCTerminalEPC

ShipBuildingContract

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Case Study : Guangdong LNG Terminal 2004

FinancingIssues

• RegulatoryIssues• DemandRisk

• ConstrucFonRisk

• Project-on-ProjectRisk• OTakerCreditRisk

• CashflowRiskThefirstnon-recoursedealinChinafinancedpurelybyChinesebanksformorethanRMB5billionwassignedonApril30,2004.

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