OPEN SEASON FOS 2021 INFORMATION NOTICE - Elengy

OPEN SEASON FOS 2021

INFORMATION NOTICE FEBRUARY 2019

Information Notice Open Season Fos 2021 Page 3

Head Office: 11, avenue Michel Ricard – 92270 Bois-Colombes – France Tel: + 33(0)1 46 52 35 00 – www.elengy.com – Twitter: @Elengy French public limited company with share capital of EUR 108,670,550 – RCS Nanterre registration no. 451 438 732

Summary With the objective to guarantee operations continuity for Fos Tonkin terminal beyond 2020, Elengy is now launching a call for capacity subscriptions (“Open Season Fos 2021”).

The Fos Tonkin LNG Terminal has imported LNG in the South of France since 1972, primarily from Algeria. Its operations are currently guaranteed through to 2020 by ongoing subscriptions and contracts.

Elengy believes that the facilities at Fos Tonkin would form an ideal additional base for Fos Cavaou LNG terminal, allowing for the retention of a second jetty and a fourth tank in the Fos-sur-Mer area at only moderate cost. Moreover, extending the life of Fos Tonkin terminal would improve the security of supply in the South of France and contribute to the development of the small-scale LNG for the industrial and transport (road and marine) markets.

The Fos Tonkin terminal holds undeniable advantages that favour the continuation of its operations beyond 2020:

• Ideal location to serve as a base for a multimodal platform for retailed LNG (rail, road, riverways, sea);

• Jetty compatible with Medmax-class or smaller vessels;

• Sheltered site, operating seamlessly for over 40 years and very well integrated locally.

Open Season Fos 2021 provides a very attractive opportunity for shippers looking to secure unloading, loading and multimodal LNG capacities with a major operator, whilst enjoying a strategic location on the Mediterranean coast in an isolated dock within the industrial area of the Port of Marseille-Fos.

Registration for Open Season Fos 2021 is open as of 20 February 2019, and shippers wishing to register for Open Season Fos 2021 are invited to complete and sign the attached Confidentiality Agreement in duplicate and return to Elengy.

Press contact: [email protected]

Sales contact: [email protected]

The information set out in this Information Notice is intended only as an introduction and not as a detailed presentation of the documents to which it refers, and interested parties should consult the relevant reference documents. Elengy reserves the right to modify or to suspend the Open Season Fos 2021 procedure at any time.

The present translation is not binding and is provided by Elengy exclusively for information purposes. Elengy disclaims any warranty of any kind as to the accuracy and completeness of the present translation, the document in French being the sole and unique reference and that would in any case prevail over any translated version.

mailto:[email protected]



Elengy LNG pioneer since 1965

As a pioneer operator of LNG terminals in Europe, Elengy is able to harness over fifty years of experience in the design, development, operation and maintenance of LNG terminals on behalf of its customers.

As a key player in a rapidly evolving market, Elengy is well-placed to assist all shippers wishing to import LNG to supply the French market and interconnected European markets. Elengy draws on its experience as an LNG terminal operator to provide reliably safe and efficient services to its customers, to develop new projects and to offer competitive, innovative solutions that meet the need for flexibility.

In France, Elengy operates three LNG terminals: Montoir-de-Bretagne, on the Atlantic coast; Fos Tonkin and Fos Cavaou (on behalf of its Fosmax LNG subsidiary), on the Mediterranean coast. These terminals offer a total regasification capacity of 21 Gm3/year.

To date, Elengy has received over 9,600 vessels under optimum conditions.

Elengy, a subsidiary of GRTgaz, wholly owns the facilities at Montoir-de-Bretagne and Fos Tonkin. The Fos Cavaou terminal is owned by Fosmax LNG, of which Elengy is a 72.5% shareholder.

Transparency, non-discrimination, protection of commercially sensitive information: Elengy acts within the regulatory framework of the French Energy Regulatory Commission (CRE). Its strong sense of ethics is documented in its code of good conduct, and compliance is tightly monitored. In addition, its conditions for access and pricing are easily accessible on the www.elengy.com website.

An integrated management system, evaluated by an internationally recognised system (DNV GL’s ISRS8©), is used to monitor performance in the areas of health and safety of individuals, industrial safety, environment (ISO 14001) and quality (ISO 9001).


Fos Tonkin today The Fos Tonkin LNG Terminal first began operations in 1972, with a current regasification capacity of 3 Gm3/year booked until December 2020. Built on a dedicated site, sheltered from traffic and tidal waters, it is able to receive Medmax-class LNG carriers transporting up to 75,000 m3 of LNG, 24 hours a day. Since being commissioned, it has received almost 5,800 cargoes:

• Up to 235 in one year and

• Up to 22 in one month.

The Fos Tonkin terminal is also used 24 hours a day for loading LNG tank trucks, and can currently host up to 24 tank trucks a day.

The Fos Tonkin terminal is now able to load small-scale LNG carriers with a minimum capacity of 7,500 m3.

LNG at Fos Sea, riverways, road, rail... Fos Tonkin is the ideal multimodal LNG platform.

A highly-favourable geographical location

The Fos area is the first point of access to the North-West European market for cargoes coming from the Mediterranean or transiting the Suez Canal. The Project makes it possible to offer to the market 15 TWh of unloading capacity.

An extensive, dynamic service area for LNG tanker trucks

As road fuel, providing supply to sites off the network, the use of LNG is developing. Fos Tonkin already makes a significant contribution to this development by supplying various destinations in five European countries.

18 395920

1860

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2014 2015 2016 2017 2018

Nombre de citernes chargées depuis Fos TonkinNumber of tanker trucks loaded from Fos Tonkin

Sites served by the tanker trucks loaded at Fos and Montoir


LNG marine fuel is booming

The Fos Tonkin terminal is already able to load small-scale LNG carriers with a minimum capacity of 7,500 m3.

With the development of LNG as marine fuel, the terminal will be able to load smaller-capacity bunker vessels or barges. This will be a major step towards controlling pollutant emissions in the Mediterranean.

Because of its location, Fos Tonkin is ideally placed to supply LNG to a large number of ports in the Western Mediterranean.

A vast hinterland

Because of its proximity to multimodal logistics platforms, Fos Tonkin is recognised as being rail connected, and is already able to load ISO containers for transfer from road to rail.

Connected to the Rhone river by canal, the terminal provides waterway access through to Lyon and the Rhine river, as well as fuelling for LNG feeders and barges1.

Our vision Beyond the conventional use of LNG as a means of supplying the European natural gas markets, fast-growing alternative uses are expected to see a significant increase, such as:

• LNG fuel (marine, waterway, road);

• supply by sea, road, rail or waterways to sites with no access to the natural gas network.

Unique in its design, its proximity to logistics platforms, its central position within a high-demand area set for rapid growth in LNG, Elengy is fully confident that Fos Tonkin holds undeniable advantages to support this development.

1 A number of relevant initiatives already undertaken can be quoted, such as the LNG Logistics project “http://www.lng-logistics.tl-a.net”.

Journey time from Fos for different Mediterranean ports

(one-way trip – 13 nodes)


Elengy therefore perceives a long-term requirement beyond 2020:

• To be able to continue receiving Medmax carriers at Fos and • To create optimum conditions for development of the small-scale LNG market, particularly LNG

bunkering in the Mediterranean.

This would not be achievable with the single jetty of Fos Cavaou alone. The Project hereby offered to the market would allow for this set of requirements to be fulfilled at best cost and without undue delay.

Maximum value for all shippers unloading LNG at Fos is sought by pooling the operational and commercial resources of the Fos Tonkin and Fos Cavaou terminals. The Project for continued operation of the Fos Tonkin terminal is built on this basis.

The Fos 2021 project provides genuine complementarity and allows all LNG stakeholders to enjoy considerable flexibility in the development of LNG in the Mediterranean.

© Altivue


Project summary Within the context of the Project, Elengy is offering the following capacities:

• An annual unloading capacity of 15 TWh;

• A maximum of 30 unloading operations per year, for Medmax-class vessels;

• A maximum of 150 reloading operations for small-scale LNG carriers.

The terminal also currently has an LNG tanker truck loading station which will be maintained post-2020 and available to users of the LNG terminal.

Provisional commercial schedule

15 March Qualification Deadline

22 March Non-binding Submission Deadline

17 May Binding Submission Deadline

28 June Closure of the Open Season

Shippers willing to register to the Open Season Fos 2021 are invited to fill in and sign the French version of the Confidentiality Agreement and send two hard copies to Elengy at the following address :

Elengy Open Season Fos 2021 11 avenue Michel Ricard - TSA 90100

92276 Bois-Colombes Cedex France

For the attention of Mr Giuseppe Spotti

A digital copy shall also be sent to the address: [email protected]

Once registered, the shippers shall receive the Information Memorandum.



Confidentiality Agreement

BETWEEN:

[The Shipper]……………………………………………………………………………………………………………………………

with head office address as ………………………………………………………………………………

registered at ………………………………………………………………………………

under registration number ………………………………………………………………………………

represented by Mr/Mrs ………………………………………………………………………………

duly authorised for the purposes hereof,

Hereinafter referred to as "the Shipper",

AND:

Elengy, a French public limited company with head office located at 11 avenue Michel Ricard, 92270 BOIS-COLOMBES and registered with the Trade and Companies Register in Nanterre under registration number 451 438 782,

Hereinafter referred to as “Elengy”,

Hereinafter referred to collectively or individually as the “Parties”.

WHEREAS:

A. Elengy has decided to proceed with an evaluation of its project to develop the unloading and reloading capacities at the Fos Tonkin terminal beyond 2021 and to make these capacities available to the market, by way of issuing, during the course of the year 2019, a call for capacity subscriptions under certain conditions (hereinafter referred to as the Project);

B. The Shipper has expressed its interest in the capacities developed within the context of the Project;

C. The Project evaluation may require Elengy and the Shipper to exchange Confidential Information.

ACCORDINGLY, THE PARTIES AGREE AS FOLLOWS:

Confidentiality Agreement is for courtesy only. French Version is the sole and unique reference for the execution of this Confidentiality Agreement. Please refer to the French Version of this Information Notice


2. DEFINITIONS

The terms and expressions set out in title case in the present agreement will take the following meaning:

“Affiliated Company” Designates any entity other than the Parties, controlled by either of the Parties or which controls either of the Parties or which is controlled by one or more persons controlling either of the Parties.

The notion of control is interpreted, for the purposes of the present definition, within the sense of article L.233-3 of the French Commercial Code, and means any direct or indirect control.

“Confidentiality Agreement” Designates the present confidentiality agreement.

“Confidential Information” Designates any information exchanged between the Parties either individually or collectively between Elengy or the Shipper or an Affiliated Company, regardless of the format in which this information is presented, whether oral, written, magnetic, electronic, graphical or digital, and relating directly or indirectly to the Project, whether of a commercial, technical, financial, legal or any other nature whatsoever, including (but not limited to) all documents, plans, schedules, pricing information, draft contracts, etc.

It is specified that such Confidential Information may constitute information which if disclosed would potentially breach fair competition rules under the terms of articles L.111-76 et seq. of the French Energy Code relating to the confidentiality of information held by operators of infrastructure for transportation, distribution or storage of natural gas or of liquefied natural gas facilities (considered "commercially sensitive information").

3. PURPOSE

The purpose of the Confidentiality Agreement is to define the conditions under which each of the Parties undertakes to preserve the confidentiality of the Confidential Information communicated to them by the other Party within the context of the Project.

4. OWNERSHIP OF INFORMATION

Each of the Parties expressly acknowledges that all of the Confidential Information and reproductions thereof communicated by the other Party remain the property of the other Party and that the provisions of the Confidentiality Agreement or the communication of Confidential Information can in no event be interpreted as conferring to either Party, either expressly or implicitly, any licence or other such right pertaining to the industrial or intellectual property rights of the other Party with regard to


the Confidential Information, whether these rights exist at the time of signature of the Confidentiality Agreement or whether they arise subsequently.

4. USAGE AND DUTY OF NON-DISCLOSURE

4.1 The Parties undertake to keep strictly secret the Confidential Information communicated and to use it exclusively within the context of the Project.

4.2 The Parties undertake to refrain from making reproductions and from disclosing all or part of the Confidential Information communicated to them to any third party to the Confidentiality Agreement, except in the following cases:

(a) Each Party may communicate all or part of the Confidential Information received from the other Party to those members of its personnel and/or the personnel of its Affiliated Companies who are required to have knowledge of such information for the execution of the Project, provided that the Confidential Information communicated (or reproductions made) are clearly identified as such and that the aforementioned Affiliated Companies have also entered into an agreement concerning the confidentiality and use of the Confidential Information in accordance with the provisions of the Confidentiality Agreement;

(b) Each Party may communicate all or part of the Confidential Information received from the other Party to its external consultants, provided that these have entered into an agreement concerning the confidentiality and use of the Confidential Information in accordance with the provisions of the Confidentiality Agreement or that they are subject to a duty to protect confidentiality as inherent to their professional status.

5. EXCEPTIONS TO THE OBLIGATIONS OF THE PARTIES

The Parties will not be subject to any duty of confidentiality with regard to Confidential Information where they are able to provide proof:

• that the information was in their possession or had entered the public domain before it was sent or communicated to them by the other Party;

• that it subsequently entered the public domain by means other than a breach on their part of their contractual obligations.

In addition, Confidential Information that must be communicated to an administrative or legal authority or to a third party as required by statute, regulation, court ruling or decision made by an EU, French or foreign competent public authority is not covered by any duty of confidentiality.

6. DURATION

The Confidentiality Agreement is effective as at the date of signature by the Parties and covers the Confidential Information exchanged between the Parties before and after this date.

The obligations arising out of the Confidentiality Agreement shall remain in force for a duration of three (3) years from the date of signature.

7. RETURN OF INFORMATION

In the event of non-subscription by the Shipper of the capacities developed within the context of the Project or in the event of the decision by Elengy to suspend the Project, each of the Parties must destroy or return to the other Party, at its request and within thirty (30) days of such request, all documents relating to the Confidential Information communicated, as well as all full or partial copies or reproductions made of such documents.

8. OBLIGATION OF CONSENT BEFORE ANNOUNCEMENT


The Shipper expressly undertakes to obtain the written consent of Elengy prior to making, allowing or seeking any announcement whatsoever regarding the Project, on its own behalf, on behalf of its employees or of its external consultants or on behalf of one of its Affiliated Companies, of its employees, or of its external consultants.

9. APPLICABLE LAW AND COMPETENT JURISDICTION

9.1 The Confidentiality Agreement is subject to French law.

9.2 Any difference of opinion relating to the interpretation or execution of the Confidentiality Agreement, which cannot be resolved amicably, will be subject to the exclusive jurisdiction of the courts within the competence of the Court of Appeal of Paris.

Signed in……………………..on the date of ............................................................................

For …………. For Elengy

Name ………….

Capacity:

Name:

Capacity:

Documents

OPEN SEASON FOS 2021 INFORMATION NOTICE - Elengy