Trafigura Lng Master Agreement

Trafigura`s Global Press Office – Tel: 41 22 5924 4528 or media@trafigura.com Founded in 1993, Trafigura is one of the world`s largest physical commodity trading groups. Trafigura supplies, stores, transports and supplies a range of raw materials (including oil and refined products, as well as metals and minerals) to customers around the world. Commercial activities are supported by industrial and financial assets, 49.6% of which are held by puma Energy, a global oil product storage and distribution company; Global terminals, impala Terminals storage and logistics companies; Trafigura Mining Group; 50 per cent were owned by DT Group, which specializes in logistics and trade; and Galena Asset Management. The company is owned by approximately 600 of its 4,100 employees, who work in 61 branches in 36 countries around the world. Trafigura has experienced strong growth in recent years, bringing its revenue from $12 billion in 2003 to $98.1 billion in 2016. For more than twenty years, the group has connected its customers to the global economy and has grown through the promotion of trade. Visit: www.trafigura.com While portfolio sellers seem to be becoming more active than traditionally in short-term trade and spot selling, we see the opposite of traders, some of whom have entered into contracts to buy long-term LNG, including as a founding client of LNG projects in the green prairies. By the end of 2018, Vitol has agreed to purchase 0.8 MTPA from Petronas, which will be delivered over a 15-year period from the LNG Canada project, which will begin in 2024 and has signed a 10-year contract at the end of 2019 to launch Trains 1 to 3 of Nigeria`s LNG project, with delivery beginning in October 2014. In 2019, Gunvor agreed to acquire a total of 3 MTPA from the Commonwealth LNG project in the United States, to play a marketing role and to assist the project in securing gas and gas production contracts.

While it was previously less common to see traders in long-term LNG sales and purchase transactions, traders must necessarily obtain quantities for trade and, considering that they are confident in their future market prospects and their ability to resell those volumes as part of their business activities, this may include buying on a medium- to long-term basis. One of the potential factors in dealers` decision to take over long-term clients of green prairie projects could be the ability to obtain relatively favourable terms as a founding client of the project. Traders may also consider that the market for the provision of services will have been strengthened until the start of the delivery activity of the projects concerned and, therefore, these transactions may be motivated by the desire to suspend the offer from that date under current conditions in order to support their long-term business activities. According to Bloomberg, Trafigura, Gunvor and Vitol (the three main LNG-active commodity trading plants) have more than doubled their supply volume compared to 2017-18 (nearly 9% of world LNG trade in 20187).

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