2017 MPEH LLC. Overview Main Pass Energy Hub LNG Export Project January 31, 2017

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1 2017 MPEH LLC Overview Main Pass Energy Hub LNG Export Project January 31, 2017

2 THE COMPANY Global LNG Services AS (GLS), established in 2013, is an LNG project developer that will build, own, and operate LNG liquefaction, storage and offloading vessels (FLNGs) for export of natural gas for locations in the U.S. and other global locations GLS was selected by Freeport McMoRan Energy (FME) to acquire and develop its Main Pass Energy Hub (MPEH) project as a location for the first two of a series of FLNG vessels to be developed and operated globally MPEH was previously permitted in 2007 by the Maritime Administration (MARAD) as a Deepwater Natural Gas Port for the importation and regasification of LNG, processing and storage of natural gas in on site underground salt caverns, and pipeline transportation of natural gas and NGLs to nearby markets GLS has developed LIQUI MAX Vessels (LMVs) based on its own proprietary LIQUI MAX platform, a highly efficient patent protected natural gas processing and liquefaction technology for FLNG vessels, with per vessel throughput rates of 12 million tons per annum, resulting in industry leading low unit cost The MPEH site coupled with GLS technology and commercial strategy will provide the first of many industry leading low cost LNG liquefaction facilities 1

3 GLS MPEH MILESTONES 2015 Reconfigured and expanded the standard FLNG concept into GLS s patented Liqui Max vessel with 12 million tonnes per annum throughput and a fully loaded unit cost breakeven below $2.00 per MMBtu 2016 Received technical validation on the LIQUI MAX process configuration, air cooling, and nitrogen processing designs November 2016 Acquired Main Pass Energy Hub project site and all associated assets (including intellectual property and the FTA permit for 24 MTPA) from Freeport McMoRan Energy LLC December 2016 Completed portions of pre FEED and FEED for solicitation of indicative quotes from shipyards and equipment suppliers January 2017 Evaluation of gas supply, pipeline, and pre processing plant locations for MPEH completed discussions in progress with major international companies for selection of preliquefaction manager January 2017 Indicative quotes received, validating CAPEX estimates January 2017 Re engagement with MARAD for project permitting 2

4 MAIN PASS ENERGY HUB LNG EXPORT PROJECT 3

5 Located Offshore in Gulf of Mexico Mississippi Alabama Louisiana Henry Hub Gulf of Mexico Main Pass Energy Hub Main Pass Block 299 Lat: Lon: miles offshore Louisiana 5 miles from coastal shipping lanes 210 ft (65 m) water depth 4

6 MPEH DEEPWATER PORT LNG EXPORT CONFIGURATION MPEH Offshore Terminal with two LIQUI MAX TM vessels 24 MTPA and new platform structures Note: View shown with preprocessing located onshore 5

THE LIQUI MAX TM VESSEL Key Technical Features Vessel hull 390m x 64m Scalable 3 6 9 12 MTPA LNG output per vessel 100 % air cooling Liquefaction using efficient N 2 trains Use of N 2

7 THE LIQUI MAX TM VESSEL Key Technical Features Vessel hull 390m x 64m Scalable MTPA LNG output per vessel 100 % air cooling Liquefaction using efficient N 2 trains Use of N 2 offers significant safety benefits Thrusters for offloading and propulsion Side by side offloading 300,000 m 3 storage per vessel (GTT Mark III) Design supports current permitting criteria 6

8 PROPOSED MPEH DWP LNG EXPORT TERMINAL CAPACITY Two LIQUI MAX Vessels (24 MTPY) Day Year* Natural gas supply 3.94 Bcf 1.36 Tcf (0.112 Bm 3 ) (38.5 Bm 3 ) 1,359 TBtu LNG liquefaction capacity 3.50 Bcf 1.21 Tcf (69,600 tonnes) (24 million tonnes) 1,238 Tbtu * Year values are based on 345 operating days per year 7

9 PRE LIQUEFACTION SUMMARY The MPEH LNG export project consists of two main segments: Gas supply from source to loading flange on liquefaction vessels ( Pre Liquefaction ) The LIQUI MAX Vessel portion of the business GLS intends to farm out to a Pre Liquefaction Manager (PLM) all pre liquefaction activities: Natural Gas Acquisition and Supply including balancing, storage, and swapping Pipeline Transportation including pipeline acquisitions and/or expansions Pre processing of the gas from pipeline quality to liquefaction quality and liquids production Offshore Gas Receiving Platform for receipt of the pre processed gas, recompression, gas precooling systems and in field pipelines to transport gas to the LMVs GLS will issue a separate RFP for Hub Management, which includes: Support vessels such as tugs and supply vessels Port logistics and scheduling of in coming and out going LNG carriers Port safety, security, regulatory compliance, weather surveillance, and personnel transfers Hub Management, including port operations, may be part of the PLM responsibilities 8

10 LNG EXPORT TERMINAL PRE PROCESSING Pipeline quality gas will be preprocessed to liquefaction quality by reducing the concentration of contaminants to the levels below: Variable Feed to Pre-processing Pre-processed gas Typical LNG spec mole % mole % H2O max 0.1 ppmv (UOP) N max 1.5 mole% (typical) CO max 50 ppmv (UOP) H2S max 2 ppmv (UOP) (0.125 grains per 100 SCF) C C C ic nc ic C5+ max 1000 ppmv (UOP) nc C C6+ max 100 ppmv (UOP) Total HYSYS Calculation HYSYS calculation SG HHV (Btu/Scf) STABLE NGL ADSORPTION 0 BPD STABLE NGL COLD FLASH 150 BPD 9

11 SEVERAL MAJOR GAS SYSTEMS ARE LOCATED IN THE VICINITY OF MPEH Chandeleur Gulfstream Destin Transco Texas Eastern DIGP SONAT Main Pass Energy Hub Tennessee Vioska Knoll 10

12 MPEH LLC MAJOR EASTERN USA PIPELINE NETWORKS 11

13 LOWER 48 STATES SHALE PLAYS 12

ports Round trip time from a central point A in the Gulf of Mexico to the LNG facility is

14 MPEH SHIPPING ADVANTAGES LEGEND MPEH Shipping Lanes Venice MPEH Pt A MPEH offshore location allows quick access from shipping lanes to facility without entry into river systems and inland ports Round trip time from a central point A in the Gulf of Mexico to the LNG facility is estimated at 2.3 days for MPEH vs. 7 to 8 days for other facilities in west Louisiana and east Texas 13

15 MPEH potential storage capacity is comparable to Mont Belvieu and could be developed for storage of natural gas, crude, LPGs, and refined products MPEH 2 mile (3.2 km) diameter salt dome Potential Capacity: +39 caverns 15 million (MM) Bbls (2.4 MM m 3 ) or 9.3 Bcf (263 MM m 3 ) each Total Potential Volume: 585 MM Bbls (93 MM m 3 ) or 363 Bcf (10.3 bm 3 ) Mont Belvieu Edge of Dome Main Pass 299 Edge of Dome Mont Belvieu Largest storage facility of hydrocarbon liquids in the world 2 mile (3.2 km) diameter salt dome 131 caverns Avg. size 1 1/2 to 2 MM Bbls Total volume 350 MM Bbls All liquids storage 14

16 APPROVALS REQUIRED FOR EXPORT PROJECT MARAD DOE FERC The one window application review process created by Congress in the Deepwater Port Act enables a comprehensive, coordinated, and timely decision from all agencies involved in the permitting process The methodology discussed with MARAD for preparation of the export application is to use the existing body of work, created in the preparation of an import facility, as a basis for the export application Review and approval of permit applications under the Deepwater Port Act is legislatively mandated to be completed in less than one year, with clock stoppages if needed for additional information submittals On May 24, 2013, DOE approved MPEH for export of natural gas to FTA countries as noted in Order No. 3290: FME is authorized to export domestically produced LNG by vessel from the proposed MPEH Port, to be located in Federal waters in Main Pass Block 299 The non FTA portion of the application will be revised and processed after MARAD has completed an environmental review of the project If on land pipelines and pre processing are part of the MPEH project, FERC/State approval would be required under the overall MARAD permitting process. 15

17 MARAD RECORD OF DECISION 2007 Record of Decision (ROD) issued in 2007 for MPEH LNG Import will be used in part as a basis for development of an export application The MPEH Deepwater Port (DWP) import facility was approved per the ROD based on use of the existing structures located on the Sulphur & Salt Lease as well as use of the salt dome for brine production and natural gas storage to support the overall operations. Functions of the DWP included LNG import, gas storage in caverns, natural gas liquids extraction, and gas/ngl pipeline transportation. The project underwent an extensive NEPA analysis that included a full Environmental Impact Statement and Environmental Assessment as well as developmental input and review by other agencies including: USCG MMS (now BSEE & BOEM) EPA NOAA Fisheries USCG 8 th District FERC (onshore pipelines) DOT Office of Pipeline Safety US Fish & Wildlife Service US Army Corps of Engineers LDNR Office of Coastal Management The review resulted in a favorable Record of Decision for the project by the Maritime Administration (MARAD) 16

18 THE MPEH PROJECT TIMELINE 17

19 GLS LIQUI MAX PLATFORM 18

20 THE GLS BREAKTHROUGH LIQUI MAX Gas pre processing remote from the FLNG vessel; generic vessel functionality liquefaction, storage and offloading only. Low unit cost driven by high liquefaction rates per vessel, 12 million tons per annum Gas pre cooling synergies exploited between pre processing plant and liquefaction vessel Nitrogen process the safest process available Proprietary air cooling lay out on cantilever in combination with the most recent air cooler developments provide 100% process air cooling Verified by Major Contractors Protected by Multiple Patents Applications 19

21 ADVANTAGES OF THELIQUI MAX SYSTEM INCLUDE: Lowest liquefaction costs and tolling fee levels per mmbtu Huge seawater intakes eliminated by unique GLS cooling solution, minimizing impacts to the marine and fisheries environment Offshore location mitigates safety risks for local communities, while still offering extensive permanent employment opportunities and other economic benefits Controlled shipyard environment enables superior quality control, cost control, and development speed compared to onshore, onsite construction Gas pre processing located on fixed structure/barges or onshore, and placing liquefaction trains on a vessel hull enables GLS to select the best solutions from both the onshore and offshore world Floating liquefaction units can be relocated to other global regions if market conditions change Patents already received or pending for the LIQUI MAX System 20

22 ADDITIONAL DRIVERS OF THE GLS COST ADVANTAGES Reconfiguration of vessel to locate non cryogenic systems to off vessel or second vessel locations Standardization of equipment and systems to off the shelf designs, providing competitive alternatives Open art liquefaction technology no costly tied equipment Use of field proven process components only, allowing straightforward industry process verification Vessel and associated construction in controlled yard environment Fixed price, lump sum contracting with no change orders Alignment of interests with sub contractors for cost minimization Industrial series production not a one off project 21

23 CONTACT INFORMATION MPEH LLC (owned by GLS subsidiary Main Pass LMC AS) David C. Landry President Main Pass Energy Hub 1615 Poydras Street New Orleans, LA U.S.A. Office: ltd.com Global LNG Services AS Paul L. Eckbo Chairman Global LNG Services, AS Inkognitogata 33, 0256 Oslo, Norway Office: ltd.com ltd.com Jan 31,

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