Economic Impact Assessment Rosignano LNG Terminal IAIA 2017 - Montreal 6 April #iaia17

This Slide Deck Project Background Socio Economic Study Drivers Methodology and Study Components Economic and Occupational Impacts Construction vs Operational Phase Socio Economic Impacts Region vs Province Key Points and Takeaways #iaia17

Regassification Plant The Project Regassification Plant within Solvay premises Capacity 8 billion m³/yr LNG carriers carrying between 55.000 and 140.000 m³ Modification of existing Solvada Pier and mooring platform installation 2 cryogenic tanks 160k m³ each 5 km cryogenic piping from pier to tanks 4.5 km long 32” pipe connection to the existing grid Loading LNG Regassification Plant LNG Tsnks #iaia17

Economic Impact Assessment Study Drivers ROSIGNANO LNG TERMINAL Within the current impact assessment framework, the Environmental Office of the Tuscany Region, requested a socio – economic study to illustrate and quantify the returns in terms of: provisional direct and induced employment effects during constructions and project operations; territorial economical benefits, direct and indirect, during constructions and project operations. #iaia17

Socioeconomic Study Components PROJECT CONTEXT OPPORTUNITIES – ACTIVE SYNERGIES Role within the national energy strategy Role of the project in the economic and energy local system – AOI DETERMINATION OF THE SOCIO-ECONOMIC IMPACT Energy Hub Development Strengthening Rosignano Industrial Park Small scale LNG and Livorno Port Leverage effect for new business activities BASELINE SOCIO-ECONOMIC Demographic data Local Economy Productive Sectors Occupation Innovation and development Infrastructural System OVERCOME CRITICALITIES - COEXISTENCE WITH OTHER ECONOMICAL SECTORS Experience of Shared development of touristic and fishing sector 4 #iaia17

Quantification of the socio economic impacts OBJECTIVE ADOPTED MODEL COMPONENTS   Economic and occupational returns linked to investments related to the project INPUT-OUTPUT MODEL Induced effects generated in terms of monetary value and occupation starting from data input from investment contracts witihn a defined period of time. INPUT Fixed Investment: Capex (632 Ml € splitted in 3 years of which 240 milions invested in Tuscany). Operational investments: Opex (40 mil. €/year of which 16 Ml €/year in Tuscany). OUTPUT Direct impact: refers to monetary value and occupation that a given investment generates at the point in time in which the expenditure occurs and within the specific sector. Indirect impact: it comprises not only the economic direct effects but also those generated from the increase of the output/production in the system; Induced impacts: it includes also circular effects in the economic system such as services and consumption variations #iaia17

Economic and Occupational Impacts CONSTRUCTION PHASE OPERATIONS PHASE REGION TUSCANY YEAR 1 YEAR 2 YEAR 3 YEAR 4 For 20 years * Millions of Euro Investments in Tuscany* 78.3 100.1 62.9 16.4 ECONOMIC IMPACTS GDP* 119.1 150.3 97.1 23.1 Total Employed 2271 2888 1894 421 OCCUPATIONAL IMPACTS Direct Employed 856 1087 722 158 Direct + indirect 1082 1381 912 198 Multiplier (GDP/Inv.) 0.54 0.55 0.71 0.59 Employed per mil. € inv. 10.2 10.6 13.8 10.8 6 #iaia17

Economic and Occupational Impacts CONSTRUCTION PHASE OPERATIONS PHASE PROVINCE OF LIVORNO YEAR 1 YEAR 2 YEAR 3 YEAR 4 For 20 years * Millions of Euro Investments in Tuscany* 78.3 100.1 62.9 16.4 ECONOMIC IMPACTS GDP* 96.6 121.2 77.2 18.8 Total Employed 1854 2346 1525 397 OCCUPATIONAL IMPACTS Direct Employed 699 883 581 149 Direct + indirect 884 1122 734 187 Multiplier (GDP/Inv.) 0.43 0.44 0.56 0.48 Employed per mil. € inv. 8.4 8.6 11.1 10.2 7 #iaia17

Impacts On Sectors Induced and occupational effects generated by the investment and percentage by economic sector Sector Outputs 8 #iaia17

Impacts On Sectors Occupational returns generated by the investment and shown by economic sector Employment (AWUs) 9 #iaia17

Socio Economic Impacts Region vs Province #iaia17

Conclusions Project investments will certainly increase development opportunities and will induce positive and negative impacts: Economic effects: the multiplier effect of direct investments will result in 366 million € generated locally over 3 years in the construction phase and 23 million € / year during operations. Employment opportunities: the project will involve a total of 3375 employees (as direct and indirect) in 3 years in the construction phase and 198 employees / year during operational phase; Inter-relationship effects: development of new synergies with the local industrial sector, the local and regional Authorities and other local stakeholders in order to capitalize the opportunities connected to the Project: Consolidation of the local industrial compound due to the possible supply of natural gas for electricity production; Development of potential new business in the distribution of LNG as an alternative fuel for maritime and road sectors or associated to local industries for gas production, chemicals and cold chain in the food industry; Exploit possible synergies with local industrial compound (e.g. the main industrial port and for port services related activities). Negative short term impacts may occur on tourism pockets with seasonal losses mainly during summer season of the initial 3 years construction phase. #iaia17