The document discusses whether the dynamics of the LNG industry are changing. It notes that there is a near-term supply tightness as new LNG import capacity has doubled in Singapore to 6 million tonnes per annum. However, the LNG industry is becoming more dynamic with new suppliers, markets, players, and pricing constructs emerging. Flexibility is increasing and LNG is being used more as a transport fuel. Nonetheless, US LNG will not solve all supply issues, pricing will remain regional, oil indexation will still be important in Asia, and greater liquidity is not guaranteed.

1. Are the dynamics of the LNG industry changing?
CERA week ● 5 March 2014
Chris Finlayson, Chief Executive, BG Group
Methane Shirley Elisabeth LNG vessel

2. Legal notice
The following presentation contains forward-looking statements concerning BG Group plc’s strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the countries, sectors or markets in which BG Group plc operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which can be controlled or predicted. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from the guidance given in this presentation for a number of reasons. For a detailed analysis of the factors that may affect our business, financial performance or results of operations, we urge you to look at the “Principal risks and uncertainties” included in the BG Group plc Annual Report & Accounts 2012. Nothing in this presentation should be construed as a profit forecast and no part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in BG Group plc or any other entity, and must not be relied upon in any way in connection with any investment decision. BG Group plc undertakes no obligation to update any forward-looking statements.
No representation or warranty, express or implied, is or will be made in relation to the accuracy or completeness of the information in this presentation and no responsibility or liability is or will be accepted by BG Group plc or any of its respective subsidiaries, affiliates and associated companies (or by any of their respective officers, employees or agents) in relation to it.
2

3. Securing energy supply for Singapore
3
Near-term outlook – supply hiatus and market tightness
•New LNG import terminal
•Second terminal from 2020+
•Capacity has nearly doubled to 6 mtpa in a year
•Singapore’s vision: to create a competitive LNG market and become a regional energy hub

4. LNG today
•2013 trade = ~240 mt* (~176 bcma)
•~10% of all gas consumed
•A global trade:
–17 exporters
–27 importers
–~382 ships
•An increasing dynamism:
–3 new markets added in 2013
–2012 short-term trade** = 25% of total, 2013 likely to be similar.
–2013 AB to PB = 22.7 mt* (16.7 bcma)
4
Near-term outlook – supply hiatus and market tightness
*Source: BG Group interpretation of IHS Waterborne data (Jan 2014).
**Source GIIGNL – contracts of less than 5 years
Note: AB = Atlantic Basin, PB = Pacific Basin

5. BG Group LNG trade outlook
5
Market outlook
Global LNG supply (mtpa)
Source: BG Group outlook 2013; Yamal not included in under-construction as the BG oultook was done prior to Dec 2013 FID
* Range of trade forecasts (2013): Wood Mackenzie, PFC Energy acquired by IHS, IHS CERA, Poten & Partners, PIRA, FACTS, Global Energy, Gas Strategies
**Some US capacity (Sabine Pass T1-4) is under construction
Range of external LNG trade forecasts*
New supply
~120 mtpa
Supply: existing and under construction
BG trade outlook
Demand upside
Existing
Under construction
Other
US**

6. Are the dynamics changing?
6
Near-term outlook – supply hiatus and market tightness
•New suppliers, markets and players
•Increasing flexibility
•New pricing constructs
•LNG as a transport fuel

7. But there are limits
7
Near-term outlook – supply hiatus and market tightness
•US LNG not a universal solution
•Pricing will remain regional
•Oil indexation will remain important in Asia
•Increasing liquidity is not a given