Eastern Hemisphere LNG 2001 Objectives and Activities Global LNG Eastern Hemisphere LNG 2001 Objectives and Activities November 2000

Eastern Hemisphere LNG Team Origination and Marketing Clay Harris - Dubai New Person - Dubai Zdenek Gerych - Houston V.V. Rao - Singapore Satish Venkataraman - Singapore Brad Hitch - Trading Eric Groves - Pricing Dan Rogers - Legal Nancy Corbet - Legal Ken Krasny - Tax Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000

Eastern Hemisphere -- Supply & Markets Europe -- Fallback Market to Asia Korea Core Asian Markets Japan Qatar China Abu Dhabi Oman India (MetGas, DPC) Yemen Brunei Malaysia Arun Bontang Existing or in construction Proposed Tangguh Australia

Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000 Core Strategies Build Flexible Supply Portfolio Middle East, Far East and Australian LNG producers Build broad base of commercial relationships Build Market Liquidity Use project affiliates to open markets in India, Japan, Korea, Europe Introduce Enron’s risk management & financial expertise to LNG Support strategic asset development India, Japan and possibly Korea projects (or market access) Consider JV’s to minimize exposure Procure low cost LNG transportation Charter or procure from 3 rd parties Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000

2001 Objective: Building Supply Portfolio ADGAS Has 0.3 to 0.5 MMTA of surplus LNG - possible sales to Korea & Europe Looking to close term or spot deal and transport quantities on HG Oman LNG Base capacity sold out but they have up to 0.5 MMTA above nameplate Looking to close spot deals -- possible sales to Korea & Europe Northwest Shelf “Spot” quantities : 4-5 cargoes per year available for 2001 to 2004 “Wedge” quantities: 0.5 MMTA+ associated with Train 4 Pertamina Has excess quantities at Bontang and potentially at Arun Potential for executing a 0.5 MMTA deal Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000

2001 Objective: Strategic Asset Development India LNG Projects Remarket DPC’s excess quantities from Oman & Abu Dhabi Close MLNG TIGA SPA for MetGas Assign TIGA optional quantities to Global LNG Execute Master Supply agreement with MetGas Backhaul agreement with ADGAS Discuss swap transaction with TIGA and TEPCO to keep concept alive Japan Market Access Advance BHP/Japan Gasco Gas Small Scale LNG terminal Assist E-Power / Enron Japan on other terminal opportunities Pursue negotiated access with existing terminal owners - Osaka Gas Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000

2001 Objective: Other Activities E-commerce with Petronas LNG transaction & information website first step in getting to an LNG trading platform begin feasibility study in Q1 2000 and develop platform by Q4 establish Bintulu as regional LNG hub Market Enron’s risk management & financial products introduce LNG producers to other products that we can offer could be swaps, hedges, etc. differentiates Enron as being more than just a buyer of LNG Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000

Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000 Issues Need for LNG Ships to build supply portfolio additional ship in 2001 would have allowed NWS purchase need at least 2 ships by 2003 and possibly 2 more by 2005 chartering capacity from others will help (Tokyo Gas, KOGAS) ex-ship deals will also help but distance to Europe is a problem Backhaul options to India also a possibility Asian Merchant strategy linked to India, Japan access Japan is a large LNG market but access not yet available India is a potential market but Metgas still a question Coordinated strategy needed in Japan Enron is well positioned to break through in both markets Access to Europe as a fallback market is also key requirement Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000

Eastern Hemisphere -- 2005 Profile LNG is a significant profit center Volumes exceeding 6 MMTA -- 3 MMTA Projects, 3 MMTA Merchant (excluding DPC) Annual profits exceeding $25 MM Enron develops LNG network to deliver merchant services Control or access to 5-7 ships Access to 4 terminals in India, Japan and Korea Enron is leading aggregator in the region - “Brand Name” Have similar standing to Enron in Europe or North America Seen as premier supplier of all LNG merchant services Enron On-Line is used for merchant transactions Web site is seen as premier facility to arrange sales or purchases The best source of information for the LNG industry in the region Eastern Hemisphere LNG Activities - Offsite Meeting - Nov 2000