17. Unitisation of gas within a Capital Partnership enables direct P2P investment 02/12/09
18. Capital Partnership โ direct Peer to Peer investment in productive assets 02/12/09
19. 2002 - Hilton Capital Partnership ( > ยฃ1bn) Capital Partnership LLP 10 UK Hotels Gross Revenues Hilton Group Capital User Consortium LLP Capital Provider Bank Property Developer Hotel Specialist % % % % %
21. โฆ Investors put in Financial Capital in money, or moneyโs worth โฆ Assets Investors Ownership Financial Capital Custodian
22. โฆ Managers provide Human Capital of time, expertise and experience.... Assets Investors Ownership Human Capital Financial Capital Managers Custodian
23. ..Users pay for the use of Capital Assets Investors Payment % % Use Managers Users Custodian
43. Consumers - lock in the price of future consumption 02/12/09
44. Units are a simple but radical new hybrid 02/12/09
45. Units lock in price like a futures contractโฆ 02/12/09
46. โฆ but there is no right to delivery; no expiry date, and no gearing 02/12/09
47. Units are similar to an Exchange Traded Fund within a partnership frameworkโฆ. 02/12/09
48. โฆ .with the added attraction that they are redeemable in payment for energy 02/12/09
49. Issue โ Liquidity : Investor sellers of Units may not find Investor buyers 02/12/09
50. No Problem! Consumers will buy if the Unit price falls below physical gas market price 02/12/09
51. ...because they would profit by buying Units and redeeming them against consumption 02/12/09
52. Issue โ Security : will a Unit be honoured when presented in payment? 02/12/09
53. No Problem! Sellers and Buyers are members of a Gas Clearing Union 02/12/09
54. Conventionally, sellers may give buyers interest-free credit โor time to pay Buyer 02/12/09 Credit Value Seller
55. Banks act as credit intermediaries, to provide trust through implicit guarantee 02/12/09 Bank Seller Buyer
56. Or sellers enter into forward purchase bilaterally or over the counter Buyer 02/12/09 Forward Sale Seller
57. Clearing Houses act as risk intermediaries, to provide trust through implicit guarantee 02/12/09 Clearing House Seller Buyer
58. A Clearing Union guarantees credit from member sellers to member buyersโฆ Buyer 02/12/09 Pool Guarantee Guarantee Seller
59. ...with a common bond as market participants Buyer 02/12/09 Pool Guarantee Guarantee Seller
60. Both seller and buyer pay into a Pool for the use of a mutual Guarantee Buyer 02/12/09 Pool Guarantee Guarantee Fee Fee Seller
61. Buyer settles credit in money, or moneyโs worth of Value acceptable to seller Buyer 02/12/09 Pool Guarantee Guarantee Fee Fee Value Seller
62. If a buyer defaults, Pool pays seller, and collects from buyer Buyer 02/12/09 Pool Collects Pays Seller
63. A service provider sets guarantee limits, handles defaults & manages the system Buyer 02/12/09 Pool Service Provider Services Fee Fee Guarantee Guarantee Fee Seller
64. The Clearing Union Buyer 02/12/09 Pool Service Provider Services Fee Fee Guarantee Guarantee Fee Value Credit Seller
77. $2 billion in conventional debt may be refinanced by Qatar
78. โฆ ..by selling 400 million Units redeemable in payment for 1 MMbtu @ $5.00 each to Japan
79. Outcome โ macro Gas Pool Gas Pool Unit Investors Japan Equity Shares Managers, Qatar gas $ or Units Redeemed $ Units Units Units
80. Gas Pools are merged within a global Master Partnership framework agreement Master Partnership Financial Capital (Money, IP etc) Clearing Union Custodians % % $ 02/12/09 Human Capital ( Developers, Operators)
