Transport & StoragePricing more critical than ever

Rudolf Huber

Head of Business Development, EconGas GmbH

Barcelona, 30 January 2009

2

Numbers???

3

Long distance transport

Price a factor or not?

The un-flexibility factor

Netback – the big equalizer

4

Regional Transport

More strategic than economic

Better price attracts business

Swaps better suited

5

LNG

The flexibility factor

Advantage – or not so much?

Only real price competition

6

Storage – original intentions

Transform baseload into structure

No money incentive

Necessity driven

7

The uncertainty factor

Recent events point to need for more

World became much more uncertain

What cushion do you feel comfortable with?

8

Taking a stance

Playing on price differential

Strategic gamble

Depends on situation of the player

9

Depleted fields or caverns

Maybe not for everyone

Can you absorb the rates

Assumes solid physical portfolio

10

LNG tanks

No real storage

Structuring tool

But paid asset

11

Floating storage

Divertability

Limited attractions for commercial gambles

Option of very last ressort

12

Strategic positioning

Long before operations commence

Preparing the playground

Flex and its price

13

The human factor

Teams value more than contracts

Optimisation trumps

No real treshold for good or bad price

14

► EconGas GmbH

ARES Tower, Donau-City-Strasse 11, 1220 Vienna, Austria

www.econgas.com