floating liquefaction: an alternative solution for alaska

1© 2012 Excelerate Energy L.P. All Rights Reserved.© 2012 Excelerate Energy L.P. All Rights Reserved.

13-14 September 2012

Floating LiquefactionAn Alternative Solution for Alaska

2© 2012 Excelerate Energy L.P. All Rights Reserved.

Excelerate Energy makes no representations or warranties, express or implied, of any kind with respect to Information provided in this presentation, including without limitation with respect to the information’s accuracy or completeness. Excelerate Energy will not be liable for any reliance or usage by a third party of any information within this presentation. Any representations or warranties shall be made, if at all, only in definitive written agreements that may be entered into by the Parties.

3© 2012 Excelerate Energy L.P. All Rights Reserved. 3© 2012 Excelerate Energy L.P. All Rights Reserved.

Excelerate Energy, a Pioneer in Floating LNG Regasification

Section 1


Company Profile

• Pioneer and world leader in offshore LNG solutions

• Unrivaled asset base offering redundancy and security– 8 regasification vessels and 1 conventional LNG carrier in operation– 1 regasification vessel under construction– 6 LNG receiving facilities owned/operated directly or under partnerships

• Unique ability to provide turnkey integrated solutions including:‒ Basic and detailed facility design‒ EPC style construction and commissioning of offshore and dockside facilities‒ Terminal Operations‒ Conventional transportation of LNG

• Pioneer in ship-to-ship transfer of LNG

• Ability to use assets and expertise to maximize LNG value chain


Excelerate Energy’s History of Innovation

“World’s First Commercial”

LNG Ship-to-Ship Transfer

February 2007

“World’s First Regas Vessel”

Excelsior Delivered

January 2005

ExcelerateEnergyFormed

July 2003

“First LNG Facility on the US East Coast in 30 Years”

Northeast Gateway Commissioned

May 2008

“South America’s First LNG Import Facility”

Bahia BlancaGasPort Commissioned

June 2008

“100th Ship-to-Ship Transfer of LNG”

Over 12,600,000 m3

of LNG transferred

April 2011

“World’s First At-the-Dock

LNG STS Transfer”Bahia Blanca GasPort

June 2008

“World’s First GasPort”Teesside GasPort

Completed

February 2007

“World’s First Deepwater LNG

Port” Gulf GatewayCommissioned

March 2005

“Middle East’s First LNG Importation Facility”

Mina Al Ahmadi GasPort Commissioned

August 2009

“Argentina’s Second LNG Importation Facility”

Escobar GasPort Commissioned

June 2011


Floating Regasification – 2005

Floating Terminals: Operating

Gulf Gateway


Floating Regasification – 2012


Floating Terminals: Approved/In Process

Floating Terminals: Construction

Northeast Gateway

Neptune LNG

Port DolphinGulf Gateway

Pecem

Guanabara BayMejillones

Bahia Blanca

Escobar

Port Meridian

Teesside GasPort

Mina Al Ahmadi GasPort

DUSUP

Toscana (OLT)

West Java

Medan

Israel

Puerto Rico

Malacca, East Malaysia



Floating Terminals: Approved/In Process

Floating Terminals: Construction

Northeast Gateway

Neptune LNG

Port DolphinGulf Gateway

Pecem

Guanabara BayMejillones

Bahia Blanca

Escobar

Port Meridian

Teesside GasPort

Mina Al Ahmadi GasPort

DUSUP

Toscana (OLT)

West Java

Medan

Israel

Puerto Rico

Malacca, East Malaysia

Floating RegasificationGlobal Opportunities

Proposed Floating Terminals


Floating Liquefaction, An Idea Whose Time Has Come

Section 2


Floating LiquefactionAn Idea Whose Time Has Come

• Floating liquefaction is a natural industry evolution, following on the success of floating regasification

• As compared to land-based, floating liquefaction:– Provides an effective solution at a fraction of the cost– Can be brought to market in a more efficient and timely manner– Minimizes fixed infrastructure and environmental impacts– Avoids costly pipeline infrastructure to move gas ashore

• While a new approach, floating liquefaction is not a revolutionary concept– Substantial industry experience and comfort with oil FPSOs– Application of existing technologies in an innovative manner– Key focus is to ensure reliability and operability in a marine environment


FLSO VesselModular Design

LiquefactionModules

Gas Processing(As Required)

Power andUtilities

JettyStructure

LNGTransfer

LNGCarrier


4 MTPA FLSO Vessel(Processing On Shore)

LiquefactionModules

Power andUtilities

LNGTransfer

BOGManagement


FLSO VesselSpecifications

Liquefaction Capacity: 3-4 MTPA

Storage Capacity:LNG StorageCondensate Storage

250,000 m3

35,000 m3

Fuel Gas for Power Generation: 9% of Feed Gas

Feed Gas Requirement*: ≈450 mmcfd (3 MTPA) / ≈600 mmcfd (4 MTPA)

Dimensions:Length OverallBreadthDepth Designed / Scantling Draft

338.0 m62.0 m33.4 m

15.0 m / 15.5 mWeight:

Full Load DisplacementDeadweight

281,992 T170,979 T

Accommodations:Estimated Crew Size

100 Persons70 to 75 Persons

* Feed Gas includes Fuel Gas for Power Generation, and is dependent on composition of feed gas


A Dockside Floating Liquefaction SolutionExcelerate Energy’s Lavaca Bay LNG Project

Section 3


Lavaca Bay LNG ProjectSite Location

PlannedLiquefaction Site


Lavaca Bay LNG Project26 Mile Ship Channel

PlannedLiquefaction Site

26 Mile Matagorda Ship Channel


Lavaca Bay LNG Project Benefits

• Project-friendly area – Port and local community are supportive of the project– Highly industrialized area with Formosa Plastics and ALCOA in close proximity– ≈5 bcf of pipeline capacity nearby with construction of a 32-mile pipeline lateral

• Permit likelihood high given prior activities– Site previously permitted by FERC for an LNG import terminal– Interconnecting pipeline route and tie-ins also previously permitted– Approvals are still in place with the port for dredging work required– Result is a clear roadmap for project permitting and early identification of issues

• Commercially attractive site with project control and expansion potential– Sufficient room available to expand and accommodate a second vessel

• Phase I FLSO at 4 MTPA, with a Phase 2 expansion FLSO at 4 MTPA– DOE Export license for 10 MTPA of LNG to FTA countries received 9 August 2012– Non-FTA application will be submitted to DOE by mid September 2012


Lavaca Bay LNG Project8 MTPA of LNG Export

Phase 1

Phase 2


Floating Liquefaction,An Alternative for Alaska

Section 4


Alaska’s Natural Gas Resources

• North Slope is estimated to have 236 TCF of NG

• Cook Inlet is estimated to have 19 TCF of NG

• These numbers do not include the estimated volumes of shale gas, tight gas and hydrates

• North Slope gas is “wet” gas with higher heating value which is attractive to Asian markets


Advantage of Alaska LNG

• Large Gas Resources near existing infrastructure

• Limited Environmental Impact

• Not part of shale LNG export debate

• Stable political climate

• Close proximity to US and global markets

• State regulatory approvals are in place to produce and transport the gas


Alaska’s LNG ExportUtilizing A Floating Liquefaction Solution

• Available pipeline gas source– 600 mmscfd required

• 4 MTPA FLSO vessel– Robust facility built to withstand Santos

Basin, Brazil MetOcean conditions

• Black & Veatch PRICO process, a simpler and reliable approach

• Small footprint with minimal environmental impact

• Dockside mooring in a relatively benign environment

• Fraction of the cost of an on-shore facility at approximately $450 per ton

• 44 months from FID to first LNG


Commercial ConsiderationsSection 5


Distance to MarketsFrom Alaska

Japan:9 Days

Brazil: 20 Days

El Salvador:11 Days

Dominican Republic: 15 Days

Puerto Rico:15Days

Chile: 17 Days

Argentina: 22 Days

South Korea:11 Days

India:22 Days

Bahrain:25 Days

UK:24 Days

Valdez, AK

Hawaii: 7 Days


Potential Deal Structure

• Excelerate may provide services in any combination of the following:

– Tolling Agreement – Customer sources its own gas with a take-or-pay Liquefaction Capacity Agreement with Excelerate (potentially with LNG transportation to market)

– DES/FOB LNG Supply Agreement – Customer purchases LNG from Excelerate, either on an FOB (at terminal) or DES (delivered) basis with Excelerate supplying natural gas at agreed price (plus premium and fuel)

– EE Capacity Agreement – Excelerate purchases LNG cargoes for its trading portfolio – comprising (i) excess production beyond nameplate capacity and/or (ii) a dedicated portion of project nameplate capacity

ELS AlaskaLiquefaction Company

Customer ATolling

Agreement

Customer BDES/FOB

LNG Supply Agmt

ExcelerateTrading

CapacityAgreement

AlaskaGas Supply

Gas Purchase


Important Floating Liquefaction Project Facts:• Markets and end-users need a natural gas solution,

not just an LNG terminal or vessel

• The liquefaction vessel is only part of the equation

• Liquefaction service providers must be well versed in all aspects of a project, and the LNG value chain

The Excelerate Energy Advantage:• Flexibility in liquefaction commercial structures

• Advanced work on Liquefaction FEED and global leading experience in the floating LNG technical space

• Industry leader in downstream regasification facilities and development of new market access points

• A well established and broad downstream portfolio of LNG end-users both in LNG commodity sales and regasification capacity

Excelerate’s FLSO: A Solution-Based Approach


EXCELERATE ENERGY L.P.1450 Lake Robbins Drive, Suite 200The Woodlands, TX 773801 (832) 813-7100www. excelerateenergy.com

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floating liquefaction: an alternative solution for alaska

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