Ann: Slipform & Energy World International Amend Loan Agreements, page-4

I think, for what it is worth, that the debt will be repaid via a combination (some or all) of the following:

1. Project financing of the PSC and Powerplants at Sengkang. The gas field and power plant will be debt free in 2022, and the offtakes/pricing for both gas and power will have just been agreed for 20 years. There may be some need for a maintenance reserve, but this project should support 50-60% debt.

2. EWC is selling 50% of the operations based on the PSC and likely to have to do the same for the PPA. Obvious the equity slice will be what is left from 1 above, but the incoming owner should be paying a chunk of cash to EWC for its share.

3. At Sengkang/Wajo, the LNG plant once completed will support a slice of bank debt, which with also be based on offtake (perhaps the nickel smelter/refinery) of LNG, and the increased offtake of gas from the PSC (see 1 and 2 above). If the contracts are take or pay, or even a baseload of take or pay, then the credit worthiness of the offtaker will drive the debt loading on the equipment at Wajo.

4. In the Philippines, there will be a similar opportunity to load up some debt. But on the current business model, ie merchant purchases of LNG, and spot market sales of LNG, and power this may be limited. Tolling LNG into the Philippines could support 30% (?) debt , but importing LNG for power production for the spot market is unlikely to be very bankable.

Therefore I am looking for the details on the new PSC and new PPA, the sale of equity in Energy Epic Sengkang and PT Energi Sengkang, any sort of outtake with PT Vale or the like, and its credit rating, and finally something a more sensible business model in the Philippines - which I am pretty sure already exists or is close to it, but is not going to be disclosed until the LNG import and power stations are complete as I do not see SE taking a 20 year discount for closing these outtakes before the plant is built.

To summarise - I am not worried about the Slipform debt. I am more worried about SE and GE, and myself dying of old age before this 20 year project is ever completed.

Who remembers when the point behind modular LNG trains was so they could be packed and taken where the stranded gas is?