Marine Technology Society Houston, Texas April 28, Energy Bridge. Bringing Continents of Energy Together

Marine Technology Society Houston, Texas April 28, 5 Energy Bridge Bringing Continents of Energy Together

Agenda The economics of Challenges to building regasification facilities in the United States Growth in worldwide liquefaction capacity Will betting on economies of scale pay off in? Excelerate Energy a catalyst for action in the space What might the future hold for United States imports of?

Natural Gas and Volumes In its liquid form, occupies only 1/6 th of the volume that it does in its gaseous state Therefore, it is can be stored in a limited space and transported more efficiently by ship over long distances

The Value Chain Natural Gas Production Liquefaction Plant Tanker Regasification Terminal $.5 -- $1. $.8 -- $1. $.4 -- $1.6 is economically delivered to the US at $2. to $4. (plus or minus location value) $.3 -- $.6

Challenges to Building New Regasification in the U.S.

Challenges to Building New Regasification in the U.S. Proximity to population and infrastructure Impact of spill scenarios onshore Affect of infrastructure and existing waterway usage Environmental impacts Dredging and wetlands impacts Facility footprint Water usage and air emissions Long lead time to permit and construct facilities Further complicated by public perception

Growth in Liquefaction Capacity 5 45 4 Bcf/Day Liquefaction Capacity 35 3 25 15 5 4 5 6 7 8/9 Worldwide Liquefaction Capacity (Nameplate)

Growth in Liquefaction Capacity 5 45 4 Bcf/Day Liquefaction Capacity 35 3 25 15 25% 9% 13% 53% 5 4 5 6 7 8/9 Worldwide Liquefaction Capacity (Nameplate)

Excess Liquefaction Capacity?? 3 25 Bcf/Day Liquefaction Capacity 15 5 4 5 6 7 8/9 Growth in Worldwide Liquefaction Capacity (Nameplate)

Excess Liquefaction Capacity?? 3 25 % Annual Demand Grow th Bcf/Day Liquefaction Capacity 15 5 4 5 6 7 8/9 Growth in Worldwide Liquefaction Capacity (Nameplate)

Excess Liquefaction Capacity?? 3 25 % Annual Demand Grow th 15% Annual Demand Grow th Bcf/Day Liquefaction Capacity 15 5 4 5 6 7 8/9 Growth in Worldwide Liquefaction Capacity (Nameplate)

Excess Liquefaction Capacity?? 3 25 % Annual Demand Grow th 15% Annual Demand Grow th % Annual Demand Grow th Bcf/Day Liquefaction Capacity 15 5 4 5 6 7 8/9 Growth in Worldwide Liquefaction Capacity (Nameplate)

Economies of scale Liquefaction Shipping Regasification Are Technology Changes Creating Economic Step Change? Question: Will the practical application match the theoretical expectation for benefits from economies of sale?

Will the Practical Application Match the Theoretical Expectation? A two-train liquefaction project at 7.8 mtpa each 25 65 Total Natural Gas Bcf/Day 15 5 2 Train Project USA USA Global UK California Japan Spain France Korea 4 Average Demand

Evolution of Carrier Size Cubic Meters 3, m3 25,, m3 2,216 1, 133, 135, 125, 153,, m3 71,5 87,6 27,4 25,5 1964 1965 1969 1973 1975 1981 1995 5 7 9- Finima Independent Prismatic Aluminum Cargo Tanks Independent Cylindrical Tanks First Membrane Ships First Moss Rosenberg Independent Spherical Tanks Ben Franklin & El Paso Kayser

Will the Practical Application Match the Theoretical Expectation? Number of Regasification Terminals Accessible to Large Vessels in 4 5 4 47 regasification terminals were in service in 4 3 138, 145,, 25, Vessel Size (cm)

Will the Practical Application Match the Theoretical Expectation? A 2.6 Bcf/Day Regasification Terminal 25 65 Total Natural Gas Bcf/Day 15 5 USA USA Global UK California Texas Louisiana Mass. Florida 2.6 Bcf/Day Regas 4 Average Demand

Worldwide Liquefaction Utilization % 9% 8% 7% 6% 5% 4% 3% % Liquefaction Facility Utilization (%) % % 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 1 2 3 4E 5E 6E 7E 8E 9E E Simmons and Company International Robert Kessler 1.713.546.78

Worldwide Regasification Utilization % 9% 8% 7% 6% 5% 4% 3% % Liquefaction Facility Utilization (%) % % 199 1991 1992 1993 1994 1995 1996 1997 1998 1999 1 2 3 4E 5E 6E 7E 8E 9E E Simmons and Company International Robert Kessler 1.713.546.78

Issues Will the Practical Application Match the Theoretical Expectation? Will enough regasification be built to handle the large liquefaction trains? Will enough regasification with capacity to accept the newer, larger ships be built? Will the regasification that is built be able to effectively distribute the gas downstream?

Projections The lumpiness of infrastructure additions, particularly at the scale of current & forecast mega projects, will introduce significant additional volatility to the global marketplace The Global industry is building enough liquefaction and will build enough ships to move it such that attendant growth in demand will be difficult to achieve for the next decade

Hypothesis Liquefaction will continue to outpace demand Probability of Achieving High-end Growth Objectives Within 36 to 42 Month Horizon 9 8 7 % Achievable 6 5 4 3 Shipping Liquefaction Regasification Worldwide United States Regasification Ultimate Demand Growth

Hypothesis Liquefaction will continue to outpace demand Probability of Achieving High-end Growth Objectives Within 36 to 42 Month Horizon 9 8 7 % Achievable 6 5 4 3?? Shipping Liquefaction Regasification Worldwide United States Regasification Ultimate Demand Growth

US Forecast Imports and Capacity (Bcfd) 18 16 14 12 8 6 4 2 1998 2 4 6 8 12 Existing Approved Filed Planned 14 Capacity Filed/ In Name Region (mmcfd) % Approved Service Lake Charles GC 1,8 83% F, A 1981 Everett EC 725 % F, A 1971 Elba Island GC 86 % F, A 2 Cove Point EC 1,55 85% F, A 3 Energy Bridge GC 5 % F, A 5 Freeport GC 4, 48% F, A 8 Calypso GC 83 75% F, A 8 Main Pass Energy Hub GC 934 5% F 8 Ocean Cay - Bahamas GC 842 25% F, A 8 KeySpan EC 5 25% F 8 Clearwater Port WC 8 15% F 8 Sound Energy Solutions WC 7 5% F 8 Sabine Pass GC 2,6 7% F, A 9 Corpus Christi GC 2, 6% F, A 9 Cameron GC 1,5 7% F, A 9 Port Arthur GC 1,5 5% F 9 Gulf Landing GC 1, 7% F, A 9 Ingleside Energy Centre GC 1, 5% F 9 Pearl Crossing GC 2, 5% F 9 Vista del Sol GC 1, 5% F 9 Golden Pass GC 1, 5% F 9 Compass Port GC 1, 5% F 9 Crown Landing EC 1, 25% F 9 Calhoun GC 1, 15% F 9 Port Pelican GC 8 % F, A 9 Cabrillo Port WC 8 5% F 9 Pascagoula - Casotte Landing GC 1,3 5% F Creole Trail GC 3,3 15% Broadwater Energy EC 1, 25% F Beacon Port GC 1,5 15% F Quoddy Bay EC 5 15% Northeast Gateway EC 4 % Gulf - Pascagoula GC 1, % 11 Skipanon WC 5 % 11 Pelican Island GC 1, 15% 12 Somerset EC 65 15% 12 Weaver's Cove EC 6 15% F 12 Dorado HiLoad GC 1,4 5% 12 St. Helen's WC 7 15% 14 Neptune EC 4 15% F 14 Coos Bay WC 13 15% 14 High Rock /Seafarer GC 1, % 8 Simmons and Company International Robert Kessler 1.713.546.78

Excelerate Energy A new player in the Industry A Catalyst for Growth in Downstream Focused on adding regasification infrastructure to growing markets for natural gas Recently completed successful commissioning & commercial operations of the first off-shore regasification in the world, and the first new regasification terminal to serve the US in more than years

Energy Bridge is a Flexible, Floating Pipeline Initial fleet of three vessels can link supplies from anywhere in the world to the important and growing United States market

Gulf Gateway Technical Specifications World s First Regasification Vessel Excelsior Docked at the World s First Deepwater Port Peak vaporization capacity - 69 mmcf/d open-loop mode - 45 mmcf/d closed-loop Storage tank capacity - 138, cubic meters Equivalent to roughly 3. Bcf of natural gas Ships meet or exceed all U.S. and international standards for carriers Commissioned March 17, 5

Gulf Gateway required a metering platform given its dual connection to the Sea Robin and Blue Water Pipelines Other locations will likely not require such a platform

Construction completed February 5 Gulf Gateway Commercial Operations Available 3+ years ahead of other new projects; On time, on budget Total construction time 6 winter months Excelsior, Excelerate s first Energy Bridge vessel arrived on March 17 Successfully docked to the buoy the same day Commissioning and test flows followed Commercial gas flows commenced March 22 Discharge successfully completed on March 3 Performance now proven Maximum throughput rate of 69 mmcf/d in open-loop Maximum throughput rate of 45 mmcf/d in closed-loop

View of the Deepwater Port When no Vessel is Present Marker Buoys Messenger Line Buoy Submerged Approximately feet Below The Surface

What s On The Horizon?

North American Potential Project Portfolio Gulf Expansion GulfGateway Gateway Expansion Pacific Liberty Gateway Gateway (Potential) Northeast Golden Southeast Gateway Gateway Gateway Pacific Gateway Liberty Gateway (Potential) Northeast Golden Southeast Gateway Gateway Gateway Location: Louisiana Location: Offshore Offshore Louisiana Location: Offshore NY Mexico / /NJ Florida Massachusetts / /Bahamas California Bay Location: Northern Offshore NY Mexico NJ Northern Florida Massachusetts Bahamas California Bay (West Cameron 63) (West Cameron 63) Capacity: 6 4+ toto mmcf/d 1, mmcf/d Capacity: 6 4+ mmcf/d 1, mmcf/d Capacity: 5 1, 69 mmcf/d Capacity: 8 8 5toto 1, 69mmcf/d mmcf/d mmcf/d Online: 9 Spring 7 Online: 9 Spring5 7 Online: 7 March Online: 7 March 5

Global Potential - Countries Expressing Interest in Energy Bridge Sweden Sweden UK UK Netherlands Netherlands Germany Germany Poland Poland France France Lebanon Lebanon China China Portugal Portugal Mexico Mexico -- East East Mexico Mexico West West Italy Italy Jamaica Jamaica Ecuador Ecuador Israel Israel Pakistan Pakistan Hong Hong Kong Kong India India Singapore Singapore Indonesia Indonesia Brazil Brazil Australia Australia Chile Chile New New Zealand Zealand

What Might the Future Hold? A Regasification Scenario Many of the current regas projects should get built Current terminals plus expansions 5 Bcf/day facilities at 1 Bcf/day each Bcf/day Total regasification capacity potential 15 Bcf/day could represent % of Demand by

The Potential for an Impactful Decade.6 Bcf/day of Imports Other 9% Nigeria 6% Qatar % Imports 1.2% Algeria 21% 15. Bcf/day of Imports Imports.% Trinidad and Tobago 44% Other 13% Trinidad and Tobago 26% Egypt 13% Nigeria 13% Norway 5% Indonesia 7% Algeria 9% Over 33 liquefaction trains from 12 countries successfully replace declining US production with a diverse import portfolio Qatar 14%

But It Won t be Easy Aligning investment decisions and commitments Protecting against Henry Hub price collapse Fighting resistance to infrastructure construction Competing with push for Domestic alternatives Allaying safety concerns

Excelerate is Contributing to the Solution