Who is WesPac Midstream?

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2 Who is WesPac Midstream? WesPac founded in 1998 to develop, own, and operate energy infrastructure projects Historically focused on tank farms, pipelines, marine terminals, rail off-loading, and airport fuel facilities In the last 5 years, WesPac expanded its focus to include upstream production, LNG, power plants and marine infrastructure WesPac s majority owner is Oaktree Capital and Highstar Capital, with diverse portfolio of assets under management and extensive experience in the energy industry Investments include Kinder Morgan GP, EXCO Energy, Ports America, Dynegy, First BanCorp, McDermott, Wells Fargo, Caiman Energy, Wildcat Midstream, Star West Generation and Southern Star Pipeline Highstar is the infrastructure arm of the fund with deep expertise in energy development, operations, facilities, marine vessel ownership and public private partnership experience WesPac s minority owner is Clean Marine Energy (CME) which manages and finances the conversion of large ships to LNG and innovative bunkering solutions 1

3 Recent Developments Canadian Government grants WesPac 25-year export license WesPac to supply LNG to TOTE s ORCA-class vessels Bunker vessel under construction at Conrad Orange Shipyard WesPac Jacksonville (JAX) plant chooses Cosmodyne First train will produce 125,000 GPD Second train will add additional 125,000 GPD TOTE commissions two (2) LNG-fueled designs WesPac to supply LNG at Tacoma & Jacksonville Vessels undergoing sea trials 2

4 Jacksonville LNG Project 1 st bunker barge project in North America Up to 300,000 gallons per day LNG facility 2MM gallons of storage Competitively bid; design-build EPC concept 3

5 WesPac Proposes Three Options Primary Option Build a standalone LNG plant Alternate #1 Primary Option + Gas + ISO + Rail Transport (City Gate Delivery) Alternate #2 Imported LNG + Marine Transport + ISO + Rail Transport (City Gate Delivery) 4

6 Primary Option - Port MacKenzie Liquefaction Initial Build In service ,000 GPD 2.5 mm Gals Storage 8 Mw on site generation Future Expansion (if required) In service ,000 GPD expansion 5 Mw on site generation 5

7 Primary Option - Port MacKenzie Liquefaction Ideal location for LNG Existing port Abundant land No major permitting Minimal impact Gas pipelines Power transmission Rail lines Truck access Marine access Peaking for utilities Growth opportunities Ideal Location 6

8 Alternate 1 Cosmopolitan Gas + LNG Plant + ISO + Rail Transport LNG delivered in ISO containers by rail to Fairbanks City Gate 7

9 Alternate 1, Gas Supply Cosmopolitan Gas Development Partnership Cosmopolitan is the largest undeveloped oil and gas field in the Cook Inlet BlueCrest Energy & WesPac have an exclusive field development agreement WesPac will become the 100% working interest owner in Cosmopolitan gas field Two (2) monopod platforms, wells, ~3.5 miles of subsea pipeline ~1 mile onshore pipeline to the natural gas pipeline system ~70 MMscfd production (35MMscfd per platform) Field life: 20+ years First gas to market, Fall

10 Alternate 1, Gas Supply The Cosmopolitan Unit WesPac Operations BlueCrest Operations 9

11 Alternate 2 Canadian LNG supply Tilbury Phase 1a expansion (Artist Rendering) - Aerial view WesPac has direct access to Tilbury LNG (Fortis BC) Located on Frasier River (Tilbury, BC) 1 st plant expansion underway Additional expansions planned 1 st Expansion in service, December 2016 New 1 Bcf Tank WesPac is the exclusive provider of all marine jetty services Actual construction under way - progress on current expansion WesPac is directly marketing Tilbury LNG Developed unique marine bulk to ISO container transport solutions Developed first Bulk-Breaking Capability for remote customers with limited infrastructure 10

12 Alternate 2 Innovative Marine Solutions WesPac and its affiliate CME are building the first bunker vessel in the US Deployed at Tilbury, BC and JAX LNG for TOTE and others Additional larger vessels currently in design 5,000 m3 to 7,500 m3 Self-propelled Ocean going/ice capable Bulk to ISO delivery (Bulk-Breaking) On-board generation for cold ironing On board re-liquefaction 11

13 Alternate 2 Bulk-Breaking Concept WesPac offers proprietary solutions for discharging LNG from a bulk vessel to ISO containers Applicable where dock space is non-existent, primitive, limited or cannot be improved WesPac solutions do not require an exclusive LNG terminal for delivery 12

14 Delivered Price Options WesPac s alternatives offer different supply choices and price points Primary Option Dependent on a expensive 3 rd party Cook Inlet gas price Delivered Gas Price Alternate 1 Offers discounted WesPac Cook Inlet gas price ~$1.20 below current market price. Alternate 2 Dependent on market price of gas at US/Canada border (currently 1/3 of prevailing Cook Inlet price) Prices assume use of up to 70% AIDEA equity and financing 13

15 The WesPac Advantage WesPac Advantages Provide natural gas feedstock below prevailing Cook Inlet prices Multiple competitive LNG options Oaktree Capital s financial strength Access to proven reserves Proven LNG development and logistics capability i.e. Jacksonville, FL and Tilbury, BC Full-logistics chain gas production & liquefaction, logistics expertise and partners Access to markets mining, heavy industrial, seafood processors, marine Investment in infrastructure Ports, rail, shipyards, mining, vessels, reserves, pipeline, storage, power plants Jobs and economic growth Community economic development 14

16 The Decision WesPac will provide the expertise and capital resources to develop the only viable solution for low-cost energy in the Interior and Coastal regions of Alaska. WesPac s solution offers three low-cost supply options meeting Alaska s energy and emissions objectives. The State, the Governor and the market ultimately hold the power to determine the preferred energy solution for all Alaskans. 15

17 Response to Questions How is your proposed project beneficial to Interior Alaska in both the short term and long term in bringing down the cost of space heating? WesPac will provide long term reliable clean burning natural gas at the City Gate from two competitively priced LNG supply sources as early as January 2017 How is your project beneficial to GVEA in reducing the cost of electricity? WesPac will provide long term reliable clean burning natural gas at the City Gate to GVEA at prices competitive to diesel and other fuels over the long term What is your project timeline and what are the major milestones required for your projects success? Imports by early 2017 coupled with in state LNG by early 2018 Off take commitments by end of

18 17 Thank You