2 August 2013

ICE Brent Futures at 16:30 Brent Crude Oil ($/bbl) Month Price Change SEP 108.84 -0.24 OCT 108.00 -0.21 NOV 107.34 -0.18 Energy Futures at Settlement WTI Crude Oil ($/bbl) Month Price Change SEP 106.94 -0.95 OCT 106.24 -0.69 NOV 104.76 -0.56 Table of Contents
OPIS LPG Full Day Prices OPIS LPG Mont Belvieu Snapshot OPIS Monthly Prices OPIS Freight Rates & Netbacks OPIS NWE Propane Forward Prices OPIS Global Forward Prices p. 1 p. 1 p. 2 p. 2 p. 2 p. 3

AUGUST PROPANE MARKET SHOWS SIGNS OF EASING Brent ended a tad lower after U.S jobs data disappointed the market. The hiring pace slowed in July, with the number of jobs increasing by 162,000, the Labor Department said. This was the smallest monthly gain since March, although the unemployment rate still fell to a four and a half year low of 7.4%. By 4.30pm UK time, September Brent was $108.84/bbl, down 24 cents from the same time the previous day. In northwest Europe, the propane spot market was softer after a week of sideway movements, with supply looking more abundant and weaker signals coming from the Far East. This weeks spot trade culminated in two deals by mid-week, with delivery periods largely falling into the second August decade. Fridays session saw the re-appearance of a French oil major offering a 18-22 August stem at $825/t, while a trading house bid for a marginally prompt 11-16 August cargo at $819/t and August flat. August swaps traded in the 4:00-4:30 BST time bracket on the central electronic trading platform in small volumes at $819/t on average, down $10/t from Thursday, thus limiting crude price-driven advances for the entire week to $12/t. Physical spot prices were down $1.5/t on the week at $823.5/t, while the premium to front month swaps narrowed to $4.5/t. The structure continued to flatten at the front with the perception of supply tightness easing. August/September closed the week at +$11/t versus +$21/t a week ago. A lack of momentum on the Asian market squeezed the East/West spread by $10/t to +$58/t. While propanes discount to naphtha kept largely steady week-on-week at -$68/t for August it had relapsed from its intra-week high of -$53/t. Petrochemical sources reported favourable cracking economics for light feedstock in the light of poor crude C4 margins, whereas inland distribution demand was gauged as low.
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OPIS LPG Settle Prices ($/mt) Location Propane cif ARA (ToT Cargoes) Butane cif ARA (+4,000mt) Propane FOB Med Butane FOB Med OPIS cif ARA Propane Swaps ($/mt) Mean Balance August 4:00-4:30pm 819.00 Physical-Paper Differential +4.50 OPIS Spot Prices ($/mt)

Low 821.50 842.50 843.00 788.00

High 825.50 846.50 847.00 792.00

Mean 823.50 844.50 845.00 790.00

Change -10.00 -1.00 -5.00 0.00 Change +1.30 -1.70

MTD Avg 828.500 845.000 847.500 790.000 MTD Avg 506.021 603.339

OPIS LPG Mont Belvieu Snapshot ($/mt) Mean Change Location -10.00 Mont Belvieu Non-TET Propane 506.67 0.00 Mont Belvieu Non-TET Butane 602.49

(c)Copyright by Oil Price Information Service (OPIS), a division of UCG. Reproduction of this report without permission is prohibited. Europe LPG Report is published each business day. OPIS does not guarantee the accuracy of these prices. Pricing/Editorial Office: 800-275-0950. For a limited copyright waiver, call (888)301-2645.

OPIS Europe LPG Report

OPIS Global Prices ($/mt) CIF ARA CFR Japan Mont Belvieu Non-TET FOB Arab Gulf Date 2-Aug-2013 2-Aug-2013 1-Aug-2013 2-Aug-2013 Price 823.50 875.50 503.42 817.00 Propane Change -10.00 -4.00 +11.07 +2.00 Price 844.50 877.50 602.49 819.00

2 August 2013 Butane Change -1.00 -4.00 +17.55 +2.00

OPIS 44,000mt Freight Rates ($/mt) Route Rate Change AG - Japan ALG - NWE WAF - NWE AG - NWE USGC - NWE 75.00 35.00 53.00 100.50 63.00 +3.00 +1.50 +2.00 +3.00 +2.50

Global LPG Prices NWE C3 Netback 788.50 770.50 723.00 760.50 NWE C4 Netback 809.50 791.50 744.00 781.50 Propane Change +25.00 +60.00 +53.50 Butane Price 820.00 810.00 798.50 Change +30.00 +40.00 +41.50

August Posted Prices ($/mt) Saudi Arabia FOB Algeria FOB North Sea OPIS End of Day NWE Forwards Prices ($/mt) Month Min Max Mean AUG 2013 819.00 823.00 821.00 SEP 2013 806.00 810.00 808.00 OCT 2013 795.00 799.00 797.00 NOV 2013 792.00 796.00 794.00 DEC 2013 791.00 795.00 793.00 JAN 2014 784.00 788.00 786.00 FEB 2014 775.00 779.00 777.00 MAR 2014 728.00 732.00 730.00 APR 2014 684.00 688.00 686.00 MAY 2014 675.00 679.00 677.00 JUN 2014 671.00 675.00 673.00 JUL 2014 672.00 676.00 674.00 Q3 2013 813.00 817.00 815.00 Q4 2013 793.00 797.00 795.00 Q1 2014 762.00 766.00 764.00 Q2 2014 677.00 681.00 679.00 OPIS 6-Month Forward Curve ($/mt) Propane Price 820.00 805.00 801.50

Change -5.00 -3.00 -3.00 -3.00 -2.00 -2.00 -2.00 -2.00 -2.00 -1.00 -2.00 -1.00 -4.00 -2.00 -2.00 -1.00

Time Spread +13.00 +11.00 +3.00 +1.00 +7.00 +9.00 +47.00 +44.00 +9.00 +4.00 -1.00 -- -+20.00 +31.00 +85.00 -- --

Pro/Nap -68.00 -78.00 -84.00 -81.00 -77.00 -79.00 -82.00 -122.00 -159.00 -160.00 -157.00 -150.00 -73.00 -80.00 -95.00 -158.00

Naphtha 889.00 886.00 881.00 875.00 870.00 865.00 859.00 852.00 845.00 837.00 830.00 824.00 888.00 875.00 859.00 837.00

Change -1.00 0.00 -1.00 -2.00 -2.00 -2.00 -2.00 -2.00 -2.00 -2.00 -2.00 -2.00 0.00 -2.00 -2.00 -2.00

Propane/Naphtha

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OPIS Europe LPG Report

OPIS Global Propane Forward Prices ($/mt) Month Belv. AUG 2013 503.00 SEP 2013 507.00 OCT 2013 508.00 NOV 2013 510.00 DEC 2013 511.00 JAN 2014 515.00 FEB 2014 511.00 MAR 2014 490.00 APR 2014 477.00 MAY 2014 474.00 JUN 2014 474.00 JUL 2014 477.00 Q3 2013 505.00 Q4 2013 510.00 Q1 2014 505.00 Q2 2014 475.00 OPIS 6-Month Forward Curve ($/mt) Arb East / West Change +4.00 +4.00 +3.00 +4.00 +4.00 +4.00 +4.00 +3.00 +3.00 +2.00 +2.00 +2.00 +4.00 +4.00 +3.00 +2.00 Arb -318.00 -301.00 -289.00 -284.00 -282.00 -271.00 -266.00 -240.00 -209.00 -203.00 -199.00 -197.00 -310.00 -285.00 -259.00 -204.00 FEI 879.00 875.00 876.00 877.00 879.00 872.00 860.00 813.00 771.00 762.00 758.00 760.00 877.00 877.00 848.00 764.00 Change -6.00 -6.00 -4.00 -4.00 -2.00 -2.00 -2.00 -2.00 -2.00 -1.00 0.00 +2.00 -6.00 -4.00 -2.00 -1.00

2 August 2013

E/W +58.00 +67.00 +79.00 +83.00 +86.00 +86.00 +83.00 +83.00 +85.00 +85.00 +85.00 +86.00 +62.00 +82.00 +84.00 +85.00

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Global Swaps

Friday's offer coincided with the VLGC Morston ex-Houston showing destination Flushing for a 16 August arrival. A ToT parcel was possibly sold from the cargo for 15-19 August delivery basis Flushing earlier this week. Further West African arrivals also looked possible. There was talk that an international trader with term commitments in the Mediterranean area may have sold a WAF-origin part cargo to a European trading firm. The unconfirmed deal was linked to a late July lifting from the Bioko Island in the Gulf of Guinea onto the 78,550 cbm BW Denise. A potential second deal concerning a lifting from the 78,000 cbm FPSO at N'Kossa off the Congolese coast also surfaced, but could not be substantiated. The 59,343 cbm BW Nantes was on en route to N'Kossa, according to shipping data. Market participants were still awaiting the outcome of a sales tender, under which a 44kt stem (3:1) loading 9-15 September on a FOB basis at the Oso Bonny River Terminal (BRT) was offered. The tender closed Friday. Meanwhile, the first LPG lifting from Angola LNGs new 5.2 million mt/year processing facility at Soyo is now expected in September, a trader said. The first LNG cargo was shipped to Brazil last month. In the Baltic region, Russian shipping company Sovcomflot (Continued on Page 4)

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OPIS Europe LPG Report

(Continued from Page 3) OPIS Europe LPG Report Methodology OPIS assesses daily spot propane and butane prices at the key trading hubs in northwest Europe and the Mediterranean. Editors record and confirm deals, bids and offers, analyse supply and demand fundamentals, and gauge market sentiment and outlook. Prices are quoted in US dollars per metric ton. Times quoted are that of the United Kingdom. In the northwest Europe propane market, OPIS assesses cargoes basis cif Flushing for 10-20 days forward. The quantity, grade and quality, delivery and nomination terms are as per the TOT contract for the current year. For further details, see http://opisnet.com/methodology.asp#neweuropelpg Butane prices are for field grade mixed butane cargoes above 4,000mt delivered 5-20 days forward basis cif ARA. In the Mediterranean, OPIS assesses field grade and refinery grade propane and butane fob basis Lavera 5-15 days forward. Cargo sizes are 1,500mt and above. OPIS Europe LPG Editorial Staff Karen Tang (London, UK) ktang@opisnet.com +44 779 415 0133 Yahoo: kailin_tang Dermot McGowan (London, UK) dmcgowan@opisnet.com +44 752 522 5300 Yahoo: dermotmcgowan Jessica Nesterak (MD, USA) jnesterak@opisnet.com +1 301 287 2721 Yahoo: jessica_opis Ronald Kwan (Singapore) rkwan@opisnet.com +65 6337 3519 Yahoo: ronaldkwan1 Diane Miller (NJ, USA) dmiller@opisnet.com +1 732 730 2530 Yahoo: dmiller_opis Inge Erhard (London, UK) ierhard@opisnet.com +44 777 375 7940 Yahoo: ingepopfi Mike Angell (NY, USA) mangell@opisnet.com +1 646 476 4180 Yahoo: angell_m David Wang (Singapore) dwang@opisnet.com +65 6337 3519 Yahoo: david.opis

2 August 2013

reportedly took delivery of the first of two newly built LPG carriers the 20,600 cbm Sibur Vorovezh -- in late July from a South Korean shipyard. The ice-class carrier has been chartered by Russian Sibur for a period of at least ten years, to ship cargoes from the new transhipment terminal at UstLuga in the Gulf of Finland, but the company declined comment on when the charter is due to begin. The 11,000 cbm pressurized ship Knebworth recently carried a parcel from Ust-Luga to Terneuzen, which was heard to have consisted of propane. U.S. SHALE PLAYS OFFSET NORTH SEA DROP TO BOOST CONOCOPHILLIPS 2Q PRODUCTION U.S. oil major ConocoPhillips highlighted a strong second quarter production performance on the back of thriving U.S. shale developments, and is on track for a rise in annual output this year. Conoco's production for the second quarter was 1,510 mboe/d, compared with 1,489 mboe/d for 2Q 2012. Standing out was Eagle Ford production in Texas, up 98% from the second quarter last year to 121 mboe/d. Liquids-rich plays in Eagle Ford, Bakken and the Permian basin, delivered 47% growth at 203 mboe/d for the quarter. Production in North America continues to shift from natural gas to liquids, with liquids production up 17% this quarter from last year -- now accounting for almost half of production in the region. However, in the North Sea, second quarter production dropped 63 mboe/d to 173 mboe/d from the same time a year ago. The decline was said to be mostly due to downtime, with major turnarounds at the J-Block and Ekofisk completed over the quarter, and Eldfisk ahead of schedule in July. Conoco's second quarter earnings were $2.1 billion, down $200 million from the same time last year, although adjusted earnings -- excluding special items -- were up $250 million to $1.75 billion. Looking ahead, although output was expected to drop in the third quarter from planned downtime and turnaround activity, Conoco has raised their full-year production guidance to the range of 1,540-1,570 mboe/d. Conoco said North Sea projects at Jasmine in the J-Block area and Ekofisk South remain on schedule to start up in the fourth quarter this year for delivery into Teesside terminal. In Canada, first production from the Christina Lake Phase E started in July, with production expected to ramp up over the next six to nine months. Also expected to start up in late 2013 are the Malaysian projects Gumusut field Floating Production System (FPS) and Siakap North-Petai. Conoco's operations related to Kashagan in Kazakhstan, Algeria and Nigeria were reported as discontinued operations. The company has announced plans to sell their interests in these regions by the end of the year for approximately $9 billion in total. PHILLIPS 66 SUBMITS PERMIT APPLICATIONS FOR NEW USGC LPG TERMINAL Phillips 66 has submitted permit applications with relevant regulatory agencies for its plans to build a new import/export terminal along the Old Brazos River in Texas, a company spokesman said. The facility would handle clean products and LPG. "Applications for the appropriate permits have been submitted, but as I'm sure you are aware most of these take many months for approval," the spokesman said in an e-mail
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OPIS Europe LPG Report

2 August 2013
(Continued from page 4)

earlier this week. Phillips 66 first made light of the project in an earnings call in early May. The spokesman said there were no changes to dimensions of this project. If approved, construction is expected to begin in late 2014 with completion expected in mid to late 2016. LPG would be supplied by a proposed new NGL fractionator to be located close to the Sweeny refinery. Clean products would potentially be supplied from the refinery to the terminal. BP OFFLOADS PORTUGUESE LPG BUSINESS FOR 115 MILLION EUROS TO RUBIS BP has sold its 170,000-ton LPG distribution business in Portugal to French infrastructure group Rubis for an agreed purchase price of 115 million euros. The two companies signed an agreement on Thursday, Rubis announced, with completion scheduled to take place in the first half of 2014. Rubis will have access through a joint venture to 65,000 cubic meters of storage capacity in Portugal for a market structurally dependent on imports. BP holds a 35% share in the Sigas storage facility in Sines, with Galp Energia (60%) and Repsol (5%) the other stakeholders. The Portuguese LPG market was said to be "particularly resilient" to the country's economic difficulties, and has growth potential amid a slowdown in the expansion of the natural gas network and the increased competitiveness of LPG compared to other fuels. The deal will represent Rubis' largest single market in Europe. Rubis' commercial LPG distribution brand, Vitogaz, operates in countries including France, Germany, Spain and Morocco. CORRECTION: For the OPIS Europe LPG Report on August 1, 2013, the correct quarterly values for OPIS End of Day NWE Forward Prices and OPIS Global Propane Forward prices are shown below. If you have any questions please contact Karen Tang on +44 7794150133 or ktang@opisnet.com. We apologize for any inconvenience this may have caused. Pro/Nap: Q4 80.00, Q1 95.00, Q2 159.00 Naphtha: Q4 877.00 (+19.00), Q1 861.00 (+17.00), Q2 839.00 (+16.00) Arb: Q4 291.00, Q1 264.00, Q2 207.00 Belv: Q4 506.00 (+14.00), Q1 502.00 (+14.00), Q2 473.00 (+14.00) E/W Q4 +84.00, Q1 +84.00, Q2 +85.00 FEI Q4 881.00 (+12.00), Q1 850.00 (+13.00), Q2 765.00 (+14.00)

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