Alaska LNG Concept Information. Alaska LNG. Overview. October

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1 Overview October December 3, 2013

2 Project Overview Project Team BP, ConocoPhillips, ExxonMobil and TransCanada are working together to progress an project: 300+ people involved in project planning and design work Multiple third-party contractors engaged, including Alaskans Leveraging Denali, APP, and related material ($700M past work) Project Description Concept selection work to date: Gas treatment plant located on the North Slope An 800-mile, 42-inch diameter pipeline Up to 8 compression stations At least 5 off-take points for in-state gas delivery Liquefaction plant and marine export terminal located in south-central region Lead site is Nikiski Preliminary capital investment: $45-$65B - 1 -

3 LNG Plant and Marine Terminal Site Selection Lead Site After evaluating more than 20 locations, the Project Team has identified a primarily industrial area near Nikiski. The Team has performed considerable technical work for both the location of the plant as well as the viability of Nikiski for LNG tanker operations. A Nikiski LNG plant site takes into consideration a pipeline route that provides access to natural gas for: Fairbanks Mat-Su Valley Anchorage Kenai Peninsula wants to be a good neighbor. Our goal is to lessen impacts and enhance benefits to the businesses and residents in the area. Plant Conceptual Layout - 2 -

4 Land Access Access to land is part of project development. Access to land allows further engineering and feasibility studies, including environmental, geotechnical, soils, groundwater and other research as necessary to confirm the LNG plant and terminal site selection. The exact parcels that we want to access are confidential. We do not have a specific timetable for completing the process. We hope that we will be able to reach an arrangement with the landowners in the areas we are interested in accessing. Mark Jennings - 3 -

5 Previous and Current Work Key project design accomplishments Confirmed ability to integrate into existing operations Completed project design concept, announced Feb 2013 Finalized LNG Lead Site Field Studies 2013 Summer Field work completed September 2013: Cultural Resources: >6,500 acres Hydrology / Lakes / Fisheries studied: 27 / 17 / 20 Subsistence and Health Impact Assessments starting this winter (2013/14) 150 people involved in field studies (60% Alaskans) is now working to answer key technical questions to reduce uncertainty and continue advancing the project. The multi-year field work effort is now underway. We are working to complete the 2013 program and are planning for the 2014 season. The primary scope of field work is to analyze existing environmental conditions along project footprint Planning, logistics, and permitting to support survey work Public and agency engagement to support survey work and ongoing project planning - 4 -

6 Benefits for Alaskans A successful project would provide a host of economic benefits to Alaskans including: State revenues Short and long-term job opportunities Business and industrial opportunities Commercializing North Slope natural gas through the Project will provide Alaskans access to a cleaner burning and dependable energy source to supply ongoing in-state energy demand via five offtake points along the pipeline route. The off-take points would be decided following consultation with State officials and local utilities - 5 -

7 Key Issues, Timing and Next Steps Key Issues Mega-project challenges (labor, resources, equipment, schedule, etc.) Uncertainty related to permit timing and scope Next steps Completing field studies in preparation for regulatory submissions Winter Field Season 2013/14 Summer Field Season 2014 More detailed engineering and design work for an LNG plant, marine export terminal, LNG tanker fleet, a pipeline and a gas treatment plant Project timing Preliminary engineering and environmental studies within a 3-5 year timeframe (depending on regulatory approvals) After regulatory approvals are received and funding is secured, final engineering, design, procurement and construction may be completed in 5-6 years - 6 -

8 Contact Us If you have questions or concerns, please call our Alaska toll-free number We will respond to you and put your name and address in our stakeholder database, which will give you the option to automatically receive project updates Kenai Peninsula Office 120 Trading Bay Road Suites 310, 320 Kenai, AK Toll-free number: Mark Jennings - 7 -

9 Additional Information

10 Integrated Team Management Committee Commercial Team Lead: BP Technical Committee Concept Team Lead: ExxonMobil Producing Fields Lead: BP Pipelines Lead: APP LNG Plant Lead: ConocoPhillips Integration Team Lead: ExxonMobil ERL Team Lead: ExxonMobil Multimillion Dollar, Four-Company Effort 125+ Employees, 100+ Contractors Joint work commenced March 31, 2012 after completion of the Pt. Thomson Settlement / joint work agreements Cooperative effort among the leading North Slope producers and a leading North American pipeline company Identified potentially viable LNG project options to monetize ANS natural gas Used company strengths, shared information / expertise; built upon past efforts, sought out new ideas

11 Project Concept Description Liquefaction Plant Capacity: million tonnes per annum (MTA) 3 trains (5-6 MTA / train) Potential areas: 22 sites assessed in Cook Inlet, Prince William Sound and other Southcentral sites Footprint: acres Peak Workforce: 3,500-5,000 people Required Steel: 100, ,000 tons Producing Fields ~35 TCF discovered North Slope resource Additional exploration potential Anchored by Prudhoe Bay and Pt. Thomson with ~20 years supply available Use of existing and new North Slope facilities Confirmed range of gas blends from PBU/PTU can generate marketable LNG product Peak Workforce: 500 1,500 people Storage / Loading LNG Storage Tanks, Terminal Dock; 1-2 Jetties Design based on tankers Peak Workforce: 1,000-1,500 people Gas Treating Located at North Slope or Southcentral LNG site Remove CO 2 and other gases and dispose / use Footprint: acres Peak Workforce: 500-2,000 people Required Steel: 250, ,000 tons Among largest in world Pipeline Large diameter: operating at >2,000 psi Capacity: billion cubic feet per day Length: ~800 miles (similar to TAPS) Peak Workforce: 3,500-5,000 people Required Steel: 600,000-1,200,000 tons State off-take: ~5 points, million cubic feet per day, based on demand Estimated Total Cost: $45 $65+ Billion Peak Construction Workforce: 9,000 15,000 jobs Operations Workforce: ~1000 jobs in Alaska Descriptions and costs are preliminary in nature and subject to change. Cost range excludes inflation.

12 Work Plans / Key Decision Points Requirements to Take Next Step: PTU Settlement, Joint Work Agreements Concept Selection Viable Technical Option(s) Identified Government Support Permits / Land Use Achievable Potential Commercial Viability Pre- FEED Viable technical option Government Support Permits / Land Use Underway Potential Commercial Viability GO Decision GO Decision GO (Today) FEED (Front-End Engineering & Design) Secure Permits / Land Use / Financing / Key Commercial Agreements Confirm Commercial Viability Execute EPC contracts Decision to Build the Project GO EPC (Engineering, Procurement & Construction) LNG Project Operations Peak Staffing: ~ ,500 9,000 15,000 Cost ($): Tens of Millions Hundreds of Millions Billions Tens of Billions Est. Engineering / Technical Duration*: Months 2-3 Years 5-6 Years Evaluate: Range of technically viable options for major project components Business Structure In-state gas / export LNG demand Progress: Preliminary engineering to refine concept Business structure Financing plan Complete: Front-end engineering & design Major contract preparation Business structure Financing arrangements Execute: Final engineering Financing Procurement Fabricate / Logistics / Construct Prepare for Operations Activities Solicit Interest of Others Establish Government Support and Advance Regulatory Issues: Competitive oil tax environment; predictable / durable LNG project fiscal terms; AGIA Issues Assure ability to secure regulatory approvals / permits / land use Environmental activities / Technical data collection Stakeholder engagement File DOE Export License Solicit Interest of Others Advance Gov t / Reg. Issues: Key permit / land use approvals Stakeholder engagement Secure DOE Export License Complete Gov t / Reg. Issues: Secure remaining construction / operating permits Stakeholder engagement Start individual gas / LNG sales / shipping efforts Execute individual gas / LNG sales / shipping agreements Implement business structure & agreements Screen commercial viability Assess commercial viability Confirm commercial viability Commission / start-up * NOTE: Duration of various phases may be extended by protracted resolution of fiscal terms, permitting and regulatory delays, legal challenges, changes in commodity market outlook, time to secure long-term LNG contracts, labor shortages, material & equipment availability, weather, etc.