Egyptian Natural Gas Industry EGAS

Organization of Egyptian Oil Sector Ministry of Petroleum South Egypt Holding Company (Ganope) GanoPe Egyptian Petrochemicals Holding Company (ECHEM) Egyptian Mineral Resources Association E. M. R. A EGAS Egyptian Natural Gas Holding Company (EGAS) Egyptian General Petroleum Corporation (EGPC)

About EGAS EGAS, the Egyptian Natural Gas Holding Company, was established in August 2001, under Law 203, to focus on all aspects on Natural Gas. With integrity, operational excellence and financial strength, the goal is to achieve sustainable growth to become a major contributor to the Egyptian economy. EGAS is engaged in a wide range of activities including upstream exploration and gas production, midstream gas processing, gas transmission and pipelines and downstream gas liquefaction, marketing of liquefied natural gas for export, and gas distribution in the domestic market

EGAS Strategy Maximize Natural Gas Reserves & Production. Satisfy Local Natural Gas Demand. Maintain a robust Gas Network. Maximize Revenues through the whole gas value chain.

Egyptian Natural Gas Industry History Early Gas Discoveries: 1967 First Gas Production: 1975

Natural Gas Share of Total Hydrocarbons Production (2008 / 2009) Total Hydrocarbon Production 2008/2009 = 89 MTOE 425 % Total Hydrocarbon Production 1998/1999= 52.5 MTOE 55 MMTOE 13 MMTOE The total hydrocarbon energy production in 2006/2007 was 73.3 MTOE the natural gas share represent 56% & oil 44%. Total primary energy consumption in 2006/2007was 63.4 MTOE, where Natural gas represents 48% ,oil represents 47% and the rest which represents 4.5% for hydro, wind 0.2%& coal 0.04%.

EGAS Concessions Mediterranean, Nile Delta & N. Sinai 25° 27° 29° 31° 33° 35° 34° M E D I T E R R A N E A N S E A 2000 m. 1000 m. 100 m. 33° 3000 m. 2000 m. 3000 m. N. E. Med. Deep Water SHELL 1000 m. 100 m. East EL Burullus Offshore EDDM DEV. N. Hap’y GSPC Obaiyed offshore OMV Ras El Hekma offshore STATOIL El Dabaa offshore STATOIL 32° Dev. WDDM BG N. Damietta Offshore El Temsah IEOC N. Tineh Offshore bp 1000 m. DEV. LEASES N. ALEX. bp BALTIM N. IEOC N. E. BALTIM IEOC Ha’py Seth Dev.leases bp GAZ DE FRANCE W.El Burullus bp / IEOC N. El Burg Denise BALTIM E. IEOC N. Gamasa Offshore El Temsah Seti Plio bp N. Bardawil DEV. W. Med. Sea development Block 1 HESS N. Idku. RWE DEV. LEASES ROSETTA W. Baltim offshore IEOC BALTIM S. IEOC DAMIETTA N.W. SHELL El Burg BG Karous N. Port Said IEOC N S E W 2000 m. IEOC / THARWA Thekah 100 m. El Burullus bp EL QAR’A IEOC El Manzala BG 1000 m. W. MED. DEEP WATER bp N. EL AMRIYA RWE Abu Madi EGPC Restricted area E. ELWASTANI DEV. LEASE WASTANI & Dabayaa Dev. Tao/ Kamose PERINCO Matruh Restricted area W. ABU MADI IEOC Dev. Luzi CENTURION W. El Manzala Port Said IEOC Tinah IEOC Tinah Thekah Dev. Lease offshore El Arish THARWA KHILALA IEOC 31° Sidi Abd El Rahman offshore EDISON CENTURION El Manzala El bougaz IEOC Alexandria DISOUQ RWE El Mansoura MERLON El Qantara MERLON El Arish El Dabaa CENTURION W. El Qantara El Fayrouz IEOC N. El Maghara PETZED Tanta RWE Tanta Rommana SIPETROL WESTERN DESERT 30° CAIRO SINAI EASTERN DESERT 23 EGAS Agreements Open Areas 3 New Agreements Restricted Area 15 Under EGAS Supervision

EGAS Operating Companies with EGAS 29 Companies & 18 Nationalities BG bp Shell Melrose Petronas Centrica UK UK Centurion Netherlands UK Malaysia Dana Pet. UK OMV Canada UK Total Austria France HESS Perenco USA France El Paso EGAS GDF USA France Novatek Russia Italy Eni Statoil Norway Italy Edison تزايد عدد الشركات العاملة بمناطق امتياز الشركة القابضة حيث وصل عددهم الى 29 شركة يمثلون 18 جنسية متنوعة الامر الذى يؤدى الى تنوع التكنولوجيات المستخدمة فى اعمال الاستكشاف و الحفر RWE Germany Italy Enel Barbados Egypt Geo Global Tharwa Thailand Egypt PTTEP Chile India India Algeria Petzed Kuwait Sipetrol GSPC Sonatrach Kufpec Alkor 8 8

Protectorate & Restricted Area Distribution of EGAS Concessions in Mediterranean, Nile Delta & N. Sinai Total Areas ~ 200000 Km2 Nile Delta & N. Sinai 21253 Km2 10.6% Open Areas 74295 Km2 37.1% Mediterranean 96851 Km2 48.4% Protectorate & Restricted Area 7601 Km2 3.9%

Petroleum Exploration Evolvement, Number of Agreements & Amendments (1980 – 2008)

Development of Natural Gas Agreements & Amendments (1999/2000-2008/2009) 27 gas Agreements has been signed during that period in addition to the amendment of other 22 with a total of 49 agreements. This resulted in 157 gas discoveries in the Mediterranean, Nile Delta and the WD which added 41 TCF to gas reserves and 550 million bbl of condensates.

24 Gas Discoveries (July 2008 – June 2009) Total Added Reserve 3580 BCF – 148 MMBBLC 25° 27° 29° 31° 33° 35° N.Alex B-3 BP-N.Alex(2) offshore Kafr El Sheikh (Pliocene) Add Res.: 242 BCF Ji 50-2 Bp-WMDW Kafr El Sheikh (Pliocene) Add Res.: 520 BCF Taurus West-1 BP-N.Alex(1) offshore Kafr El Sheikh (Pliocene) Add Res.: 49 BCF Rahamat-1 St.2 BP- Burullus offshore Qantara Fm (Miocene) Add Res.: 408 BCF 44 MMBC Azhar-1 CENTURION – W. EL MANZALA Qawasim Fm (Miocene) Add Res. 111 BCF 2.8 MMBC 34° N.Alex B-2 BP-N.Alex(2) offshore Kafr El Sheikh (Pliocene) Proven Reserve 2000 m. Sondos-1,2 CENTURION – W. EL MANZALA Kafr El Sheikh (Pliocene) Add Res.: 26 BCF Dekhila -1 Nalbetco - W. Med (B-1) Kafr El Sheikh – Abu Madi Add Res.: 72 BCF 100 m. 33° 3000 m. 2000 m. 3000 m. EL Basant-1,2 CENTURION – W. EL MANZALA Qawasim Fm (Miocene) Add Res.: 126 BCF 3.9 MMBC 1000 m. S.Sidi Ghazy-1 RWE- DISOUQ Abu Madi (Miocene) Add Res.: 43.5 BCF 100 m. 32° Tulip -1 Centurion – W.Qantara Abu Madi Fm (Miocene) Add Res. 20 BCF 0.4 MMBC NW. Sidi Ghazy-1 RWE- DISOUQ Abu Madi (Miocene) Add Res. 25 BCF 1000 m. N S E W 2000 m. 100 m. N.W.Khilala-1 St RWE- DISOUQ Abu Madi (Miocene) Add Res.: 50 BCF Matruh 1000 m. Restricted area Salma Delta -1,2 Centurion – W.Qantara Abu Madi Fm (Miocene) Add Res. 207 BCF 4.1 MMBC Port Said Restricted area IEOC Tinah 31° Alexandria MERLON El Qantara El Arish El Dabaa Falcon -2 Khalda –Matruh L. Safa – Alam El Bueib Add Res.: 35.67 BCF 0.51 MMBC Tanta Qantara - 4 El Mansoura – El Qantara Tinah Fm (Miocene) Proven Reserve 30° SE. Sidi Salem-1 RWE- DISOUQ Abu Madi (Miocene) Add Res. 63.4 BCF Disouq- 2 RWE – DISOUQ Abu Madi (Miocene) Add Res. 59 BCF E.Dikirnis-1 St EL MANSOURA –EL MANSOURA Qawasim (Miocene) N.Dikirnis-1 EL MANSOURA –EL MANSOURA Qawasim (Miocene) Add Res.: 1.4 BCF 0.0357 MMBC EL MANSOURA –EL MANSOURA S. Khilala-1 Qawasim (Miocene) Add Res.: 24 BCF 0.06 MMBC CAIRO

Egas Agreement Status for First and Second Exploration Phases - Financial Expenditures :1313 MM$ - Total 3D Programs : 30416 Km2 - Total 2D Programs : 3268 Km - Drilled Wells : 37 - Discoveries : 21 - Success Ratio : 57% - Added Reserves : 3.4 TCF : 210 MMBC

Results of International Bid round (2008) °25 Damietta North Marine (BP/Shell/Petronas) Financial commitment: U$ 353 million   Seismic survey: 1100 km2 (three-dimensional)   Digging wells: 4 wells   Exploration term: 6 years   Signing bonus: U$ 51 Million °27 °29 °31 Tenia North Marine (BP) Financial commitment: U$ 320 million   Seismic survey: 1600 km2 (three-dimensional)   Digging wells: 3 wells   Exploration term : 6 years   Signing bonus: U$ 21 Million °33 °35 °34 Mediterranean Sea 2000 متر N S E W 3000 متر 1000 متر 100 متر °33 2000 متر 1000 متر Brullus East Marine ( Total/Enel) Financial commitment: U$ 175 million   Seismic survey: 2200 km2 (three-dimensional)   Digging wells: 4 wells   Exploration term : 6 years   Signing bonus: U$ 5 Million 4 A 100 متر °32 3000 متر 3 Aأ 2 1000 متر 2000 متر 4جـ 4ب 3ب 100 متر 1أ 1000 متر 200 متر 4د 100 متر 1ب منطقة محظورة موانئ مطروح محظورة موانئ منطقة بورسعيد °31 Gamasa North Marine(BG) Financial commitment: U$ 78 million   Seismic survey: 150 km2 (three-dimensional)   Digging wells: 2 wells   Exploration term : 6 years   Signing bonus: U$ 11 Million الأسكندرية El Arish الضبعة وفى مجال البحث والاستكشاف كان من ابرز الانجازات التى نعتز بها ما أسفرت عنه نتائج مزايدة إيجاس لعام 2008 عن ترسية أربعة مناطق بحرية تقع جميعها بالمياه العميقة بالبحر المتوسط والتى يتراوح عمقها ما بين أكثر من 100 متر إلى 1500 متر تحت سطح البحر على 6 من كبرى شركات البترول العالمية والتى تقدمت للمزايدة بالرغم من ظروف الازمة المالية العالمية وتعديل بعض الشروط فى المزايدة للمرة الاولى لمصلحة الجانب المصرى. وقد بلغ إجمالي الالتزام المالي 926 مليون دولار لإجراء مسح سيزمى ثلاثي الأبعاد لمساحه قدرها 5050 كم2 وحفر 13 بئر إستكشافية كما بلغ إجمالى منح التوقيع 88 مليون دولار وهذا يعكس مدى ثقة الشركات العالمية بقطاع البترول المصرى ورغبتها فى مزيد من الاستثمار بمصر. وتتجه النية إلى طرح الخمس مناطق التى لم يتقدم لها أحد وذات المخاطر العالية من خلال الإتصال المباشر مع الشركات العالمية لعرضها فى مزايدة محددة قبل نهاية العام الحالى. وذلك مع ملاحظة انه ما زالت هناك مناطق مفتوحة تقدر بـــ 35% ( ما يوازى 72000 كم2 ) داخل منطقة إمتياز إيجاس التى تقدر بحوالى 200 الف كم2 فضلا عن مناطق التخليات ( 3000 كم 2- عام 2009) . Western Desert القاهرة Oil Fields Natural Gas Fields Gas & Condensates °30 Suez Sinai Eastern Desert Total Financial commitment U$ 926 Million three-dimensional Seismic survey 5050 Km2 Commitment 13 Wells Total Signing bonus U$ 88 Million Exploration Term 6 years 14

Technical Development Challenges: Water Depth Rig availability Sub-sea well completion. High Pressure - High Temperature wells.

Natural Gas Proven Reserves Development (1981/1982-2008/2009) Proven Reserves Increased about 10 times Natural Gas Consumption is expected to Expand strongly in the future. Its expected to reach 121.3 Billion Cubic Meter within 17/1/8.

Growth of Gas Reserves & Cum. Production Percentage of Production Replacement in 2008/2009 = 157% TCF Added Reserves = 57.8 TCF

Distribution of Expected Reserves Expected Reserves 69.6 TCF Proven Reserves 77.2 TCF 26.6 TCF (38%) 43 TCF (62%) بناء على نتائج التفسيرات والدراسات السيزمية والجيولوجية التى قامت بها الشركات العاملة بمناطق اتفاقيات ايجاس الحالية بدلتا النيل وشمال سيناء البرية والبحر المتوسط تم التعرف على 334 موقع استكشافى منهم 123 موقع ذات احتمالات غازية عالية (Prospect) تحتوى على 62 % من إجمالى الإحتياطى المتوقع (ما يوازى 43 تريليون قدم3) وهي في مراحل التقييم الاقتصادي بالإضافة الى 211 موقع استكشافى ذات احتمالات منخفضة (Leads) تحتاج الى مزيد من الدراسات ليصبح ذو احتمالات عالية ويبلغ إجمالى الاحتياطى المتوقع بهذه المواقع الاستكشافية حوالى 69.6 تريليون قدم مكعب غاز حيث يتواجد 94% من هذا الإحتياطى بالبحر المتوسط وحوالى60% من هذه الاحتياطيات يقع بالمواقع ذات الضغط والحرارة العالية وهذا الرقم يعتمد على دراسات سيزمية وجيولوجية حديثة وليس على دراسات احصائية مع ملاحظة أن هذه الدراسات لا تغطى سوى 61% فقط (121000 كم2) من المساحة الكلية لمناطق التزام ايجاس بالدلتا وشمال سيناء البرية والبحر المتوسط ويجري تحديث بيانات هذه المواقع كل 3 شهور بناء علي نتائج حفر الآبار. 123 Prospect (Location of High Propriety) Economic Evaluation Stage 212 Lead (Location of Low Propriety) Need More Studies Total Locations = 334 18

Propane Production 1.7 K Ton/D C2/C3 mix Production 1.5 K Ton/D Gas Production 6.8 BCF/D Gas Sales 6.3 BCF/D LPG Production 3.7 K Ton/D Propane Production 1.7 K Ton/D C2/C3 mix Production 1.5 K Ton/D Condensates Production 120 KBL/D The indicator of natural gas industry in March 2008 is represented as follow: Gas Production 6.2 BCF/D Gas Sales 5.8 BCF/D LPG Production 3.8 K Ton/D Propane Production 1.7 K Ton/D C2/C3 mix Production 1.4 K Ton/D Condensates Production 121 KBL/D

Natural Gas Production Development (1981/1982-2008/2009) Production Increased about 24 times Natural Gas Consumption is expected to Expand strongly in the future. Its expected to reach 121.3 Billion Cubic Meter within 17/1/8.

Average Annual Growth Rate = 14.4% MMCF/ D Average Annual Growth Rate = 14.4% Growth = 330 % Planned

Production of Condensates and LPG (2000/2001- 2009/2010) Condensates Thousand bbl/d LPG Thousand Ton/y

Production Enhancement through New Projects in 2008/2009 Developed Wells 77% 23% Total Projects Number: 21 (33 Wells). Average Daily Production Rate: Natural Gas 474 MMCF Condensates 3974 Barrels Total Investments U$ 3.25 Billion. Developed Reserves 5.6 TCF & 6.2 Million Barrels Condensates . Total Wells Number: 15 Wells. Average Daily Production Rate: Natural Gas 142 MMCF Condensates 4712 Barrels Total 48 Wells Average Daily Production Rate: Natural Gas 616 MMCF Condensates 8686 barrels

Gas Facilities & Processing 29 Different Gas Facility 16 Low Temp. Separator “LTS” Facilities…6800 MMSCFD 9 Liquefied Petroleum Gas “LPG” Facilities…1800 MMSCFD 2 Natural Gas Liquid “NGL” Facilities…1700 MMSCFD 2 Liquefied Natural Gas “LNG” Facilities…1870 MMSCFD With total average production LPG : 1.4 MM ton / year Condensate : 43.5 MM bbl / year Propane : 635 MTON Ethane / Propane : 476 MTON Total : 7.72 MM TON

Gulf of Suez National Gas Network Red Sea Currently N.G Reached All Areas in the country Mediterranean Sea 24 ”-50 km Scarab/ Saffron 32 ”-170 km Hapy Baltim Rosetta 16 ”-38.5 km Matruh Damietta EL sheikh zowayed EL - Obyed Tarek Abu Qir ElQara Abu Madi Port Fouad Arish Abu Qir 30 ”- 28 km 16 ”-22 km P.S Arish 22 ”- 40 km 22 ”- 40 km Port Said Alexandria South Om Barka Salam Talkha 12 ”- 40 km 42 ”- 40 km Said P.S East Port Abu Hommos 28 ”- 46 km 28”-118 km Sedi kreir 24 ”- 45 km 36 ”-194 km 24 ”- 45 km 32 ”-167 km Ameriya Egypt Gas Mahmudya Shabshir Tanta 32 ”- 85 km 16 ”-165 km Cement Sinai & Ind. Area Ameriya Cement 12 ”-14 km 24 ”- 215 km 24 ”-22 km EL - Shabab 32 ”-200 km Borg Elarab 28 ”- 86 km Abu Sultan Abu Zaabal Sadat City 16 ”- 114 km 24 ”-145 km To Eastern pipeline 32 ”- 75 km 10 of the Ramadan Nile Valley Co. Cairo 24 ”- 25 km Suez Bed-2,3 Abu Sannan 20 ”- 65 km City Gas 6 October Oyoun Moussa Abu El Ghradik Western Desert City Gas Dahshour Tebbin Sinai 22 ”- 87 km City Gas Taba Existing. P/L Under Cons. P/L Under Study. P/L Gas Fields Off Shore Facilities Distribution Station Power Station Industrial Area Gas Fields On Shore Year : 2000 2009 Capacity: 68 180 MMSCM/D Length : 3750 17770 Km (High/ medium/ low pressure) Koraymat 16 ”-192 km Zafrana 18 ”-162 km Beni Suef 16 ”-256 km - Total Investments are about U.S $ 2.1 Billion - Total N.G Expansion investments during 2009/2010 are about U.S $ 275 Million - Still planned to add 5 lines about 280 km with approx. cost of LE 1.5 Billion during the current Fiscal Year Gulf of Suez Ras Bakr ELMenia Ras Shoukir National Gas Network Red Sea Asiout

8.5 Exports Total Consumption 58.9 19 17.3 18.1 15.2 Egyptian natural gas demand was increased from 2.4 billion cubic feet in 1980/1981 to reach 54.9 billion cubic feet in 2006/2007. Starting from 2003/2004 the demand on the natural gas was 0.7 billion cubic feet and it increased to reach 19 billion cubic feet in 2006/2007. 8.5 3.7 0.7 Exports Total Consumption

BCM 41.6 39.6 37.2 34.1 30.8 30.8 GR = 9.2% 28.1 25.2 22.6 17.9 14.7 12.8 13.2 13.4 11.8 12.3 10.7 8.5 9.2

Natural Gas Consumption Pattern (1998/1999-2008/2009) 1998/1999 2008/2009 بلغ إجمالى الاستهلاك المحلى خلال عام 98/99 حوالى 10.8 مليون طن (بمتوسط يومى 1420 مليون قدم3/ يوم) بينما من المقدر ان يصل اجمالى الاستهلاك المحلى خلال عام 2008/2009 حوالى 32.3 مليون طن ( بمتوسط يومى 4156 مليون قدم3) ، أما خلال عام 2009/2010 فمن المخطط ان يصل اجمالى الاستهلاك المحلى 33.8 مليون طن( بمتوسط يومى 4345 مليون قدم3) بنسبة تطور 5 % و تشمل القطاعات التاليه : - قطاع الكهرباء بلغ متوسط استهلاك محطات الكهرباء من الغاز الطبيعى خلال عام 98/99 حوالى 850 مليون قدم3/يوم من اجمالى الاستهلاك المحلى بينما تزايد استهلاك الكهرباء من الغاز الطبيعى حيث من المخطط ان يصل المتوسط اليومى للاستهلاك الى (2370 مليون قدم3 غاز بالإضافة الى 13 الف طن مازوت يوميا ) خلال عام 09/10 حيث من المخطط تشغيل كلاً من محطتى التبين البخارية وغرب القاهرة. قطاع الصناعة بلغ متوسط الاستهلاك اليومى لقطاع الصناعة خلال عام 98/99 حوالى 435 مليون قدم3 بينما من المخطط ان يصل المتوسط اليومى للإستهلاك 1412 مليون قدم3 خلال عام 2009/ 2010. ومن المتوقع ان يبلغ ااستهلاك قطاع الصناعة خلال العام المالى الحالى 08/09 حوالى 1220 مليون قدم3/يوم حيث تم تشغيل كل من : 1- الأسمدة تم تشغيل مصنع موبكو مع مطلع عام 2008/2009 بكمية قدرها 45 مليون قدم3/يوم وبدء تجارب التشغيل لمصنع إيبك إعتباراً من يناير 2009 ومن المتوقع بدء التشغيل التجارى فى مايو 2009. 2- الأسمنت يبلغ الاستهلاك الحالي لمصانع الأسمنت 300 مليون قدم3/يوم حيث تم تشغيل مصنع العربية للأسمنت في مايو 2008 بكمية قدرها 16 مليون قدم3/يوم 3- الحديد والصلب يبلغ الاستهلاك الحالى لمصانع الحديد والصلب 150 مليون قدم3/يوم 4- الصناعات الاخرى والحراريات بلغ الاستهلاك الحالي للصناعات الأخرى والحراريات 300 مليون قدم3/يوم . 5- البتروكيماويات والميثانول يبلغ الاستهلاك الحالي لمصانع البتروكيماويات والميثانول 15 مليون قدم3/يوم حيث تم تشغيل مصنع المصرية للألكيل بنزين ( ايلاب) مع بداية عام 2008 المناطق الصناعية بلغ عدد المناطق الصناعية التى تم توصيل الغاز اليها حتى الآن 22 منطقة صناعية وهم: العاشر من رمضان , مسطرد، شمال غرب خليج السويس، عتاقه، بياض العرب ، كوم اوشيم ، مدينة دمياط الجديدة ، برج العرب ، السادس من أكتوبر، قويسنا ، العبور ، السادات، شبرا الخيمة، المحلة الكبرى، أبو زعبل، بدر، جنوب بورسعيد(الرسوة)، وادى حوف ، العاشر من رمضان ( منطقة الصناعات المتوسطة) ، الحامول بكفر الشيخ، شرق بورسعيد ، وادى التكنولوجيا 2009 Total Consumption = 41.6 BCM * Industry includes Cement , Fertilizers , Iron, Refractory &other industries , Petrochemical & methanol

Natural Gas, LNG & Propane Exports & Sales Revenues 0.2 0.3 0.8 2.4 0.4 0.5 0.6 9.3 11.1 8.8 4.8 3.7 1.7 1 10.7 12.3 13.3 14.2 Quantity= 45.4 Million tons 31.2 Million tons 14.2 Million tons Value= 5597 $ Million 2274 $ Million 12.7 Billion LE 3323 $ Million

3.47 Customers (28 Governorates) History of Residential Connections1981-2009 Number of Customers (Thousand) 3.47 Customers (28 Governorates) 1.043 Customers Connection Rate 50 Thousand Customers per year Connection Rate 250 Thousand Customers per year

Number of Connected Industrial Customers (1999/2000- 2008/2009) Total (till June 2009)= 1547 Customers

Completed Pipelines Projects: Taba-Sharm Elsheikh Ras Shukair - Hurghda Dahshour Taba 36`` 90 Km Koraiemate Ras shukair 30`` 28 Km Benisuef 148 Km 32`` Sharm Elsheik El-Menia Hurgada Ganop El Wadi Pipeline: Total Length: 920 Km Total Investment: 5.7 Billion LE The pipeline reached Aswan by November 2009 and is expected to be commissioned by December 2009. 145 Km ِAssuit 32`` 121 Km Sohag Luxor 30`` 380 Km Kina Aswan Phases Completed

Working Companies : 6 Fueling Stations : 119 Conversion Centers : 62 Sales Gas : 35 MCM /Month

Export of the first LNG Cargo: Jan. 20, 2005 LNG Projects First Project with Union Fenosa (at Damietta): Contract was signed in July 2000. One train of a total capacity of 7.6 BCM annually (4.8 million tons LNG). Investment: over US $ 1.3 billion (EGAS 20% & UF 80%) Operation: end of 2004. Total exported quantity 15.6 Million Ton (264 Shipments) Export of the first LNG Cargo: Jan. 20, 2005

The Second Project with BG, Petronas, GDF, EGPC & EGAS (at Idku): Contract was signed in April 2001. Two trains of total capacity 12 BCM annually (7.2 MM tons). Investment: US $ 1.9 billion Investment Shares: EGPC & EGAS 24%, BG, Petronas 35.5% each, GDF 5% Operation: mid- 2005. Total exported quantity 27.5 Million Ton (476 Shipments) Export of the first LNG Cargo: May 2005 Export of the first LNG cargo from train two: Oct 2005

LNG Export (2004/2005-2008/2009)

Egypt’s LNG Export 2 Norway 13 UK 4 Belgium 100 France 1 N. Korea 3 Italy 1 Turkey 300 Spain 7 Greece 3 China 62 S. Korea 190 US 56 Japan 7 Twain 26 Mexico 14 India 795 Cargos exported to 17 countries up to the end of November 2009 143 Cargos exported to ASIA Countries Include 14 Cargos exported to India 1 Argentina 37

"Methane Nile Eagle" The First Egyptian LNG Carrier Manufacture: Dec. 2007 9 voyages till today. Transported quantities of LNG: about 1.2 BCM ( More than 0.5 MM tons Capacity: 145,000 m3 Length: 272 m Maiden Voyage: 2007

World’s Top Ten LNG Exporters Egypt’s Rank 8 Source: Eni’s World Oil and Gas Review, 2008 for the years till 2007 BP statistical Review, 2009 for the year 2008

Egyptian LNG Exports (Million Ton) (2008/2009) 0.18 3.83 10.7 UK (0.37) 0.06 Belgium France Italy 0.13 1.53 Spain Greece Portugal Turkey USA (2.7) Mexico (0.19) Tunisia Jordan Argentina (0.12) India (0.19) Japan (0.73) South Korea (0.69) Algeria Libya Egypt 179 Cargos exported to 12 countries in 2008/2009

Phase 1: (Al Arish – Taba- Aqabah) 36”/264 Km Pipeline System Total Capacity= 10 BCM Phase 1: (Al Arish – Taba- Aqabah) 36”/264 Km Pipeline System Investment : US $ 200. Operation : July 2003.11 Phase 2: (Aqaba–Rehab) 36”/395 Km Pipeline System Investments: US $ 270 - 300 million Phase 3: (Jordan/Syria/Turkey) 36”/ 540 Km Pipeline System Investments: US $ 400 - 500 million Turkey Syria Lebanon Jordan Egypt

Foreign Direct Investment In Egypt By Sectors U.S $ 3.87 Billion U.S $ 6.11 Billion U.S $ 11 Billion U.S $ 13.2 Billion U.S $ 4 Billion U.S $ 2772 million U.S $ 4100 million %

Egypt as An Energy Hub Egypt’ strategic location along with other distinctive features qualify it to become an International Energy hub, linking crude oil and natural gas production areas in the Gulf and Mediterranean with consuming areas in Europe and the Far East. This vision will help to achieve the Global objective to improve Energy Security and Supply Diversification. Egyptian Assets Political And Economical Stability. Availability of the Required Infrastructures. Appropriate Fiscal Incentives. Availability Of Skilled Human Capital. Transparent Regulations. Positive Relationship Between Petroleum Sector And Our Partners.

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The Major Challenges Facing The Development of Downstream Gas Market The required investment to develop the distribution infrastructure. Reform of gas pricing policies and the timely introduction of competition. The reduction in capital flows as a result of the Global Financial Crisis. Provide more incentives for private and foreign direct investment.

Investment Initiatives to Investors In Gas Projects Reformist Investment Climate, Making Egypt as the number-one destination for FDI in Africa as it accounted for 30%* of all foreign investment in Africa. The Corporate and Personal tax rates are very competitive. Macroeconomic Stability and Robust Growth, where Egypt’s GDP grew 7.1% in 2006/07 and accelerated to 7.5% in the first half of 2007/2008; Making Egypt as better than the average for the Middle East and North Africa region. A large, skill intensive workforce at competitive price. A large and diversified consumer market. Developed Energy Infrastructure, where Egypt boasts a broad, world-class infrastructure base could create a regional Energy Hub. Political Stability and Personal Security. * Source: UNCTAD

Africa Natural Gas Main Indicators Natural Gas Reserves: Proven Gas Reserves of 14,655 BCM representing 8% of world’s total proven Gas reserves in 2008. Africa Gas Production: 214.8 BCM in 2008, contributes for 7% of the world’s total gas production which implies net exports reached 96 BCM In 2008. LNG Capacity: Africa holds 54.3 (million tones per annum) or 30% of the world’s liquefaction capacity. Africa Gas Consumption: 115 BCM represents about 53% of its production. Source: BP Statistical Review 2009

Natural Gas Development (During 2006-2030) Africa Natural Gas Main Indicators (Cont.) Natural Gas Development (During 2006-2030) More than 85% of Africa’s natural gas is produced in Algeria, Egypt, and Nigeria, which together account for 81 % of Africa’s proved natural gas reserves. The region is expected to become oriented more toward exports by which grow from 55 % of production in 2006 to a bout 58% in 2030. OECD Non-OECD Source: EIA

Natural Gas Development (During 2006-2030) Africa Natural Gas Main Indicators (Cont.) Natural Gas Development (During 2006-2030) More than 85% of Africa’s natural gas is produced in Algeria, Egypt, and Nigeria, which together account for 81 % of Africa’s proved natural gas reserves. The region is expected to become oriented more toward exports by which grow from 55 % of production in 2006 to a bout 58% in 2030. OECD Non-OECD Source: EIA

North Africa- India Natural Gas Trade 2008 (BCM) Reserves Production Consumption Surplus 8210 1090 161.3 66.2 95.1 North Africa 41.4 30.6 India -10.8 0.91 North Africa gas exports to India accounted for 0.91 BCM in 2008 ranking it as the second gas exporter to India after Qatar (exports to India= 7.98 BCM in 2008).

Conclusion Proven gas reserves have been steadily increasing, moving Egypt ahead towards export more gas by pipelines & LNG at the same time. Gas infrastructure, consisting of gas transmission grid and gas processing facilities, supports the satisfaction of the ever increasing demand on gas in the local market and gas export projects. The development of the Egyptian gas industry ranked Egypt in 2008/2009 as number 17 globally in terms of reserves, number 16 in terms of production and number 15 in terms of consumption. Egypt is participating in world energy security through its LNG exports and through the Arab gas pipeline in the near future.