QUESTIONS ANSWERS Q1 Whose technology is at the liquefaction plant at Passyunk? A1 There is no liquefaction at Passyunk Plant. The Passyunk LNG tank is a PDM tank and the steam vaporizers are Aerojet General. Q2 Do you still need support from the Tank at Passyunk or do you feel that you no longer need it? A2 This plant is primarily for pressure support. It is used on very cold mornings and it is used for failure supply planning. Q3 Where are the gate stations that feed Passyunk Plant? A3 There is one gate station across the street in the Philadelphia Energy Solutions property which is a Spectra-owned TETCO station that supplies 100-150 psig. There is Transco gate station next to the Walt Whitman Bridge that supplies 100-150 psig. A third Spectra owned TETCO station that supports a cogeneration plant connects into the Passyunk Plant up to 450 psig. PGW currently does not nominate gas through this station. Q4 Do you own the gate station located in Philadelphia Energy A4 No, that is owned by Spectra. Solutions? Q5 Do you still have propane tanks and do they work? A5 We had a propane-air facility but the only thing we have is left are the propane storage tanks. The tanks are coated with a fire proofing material. We can t be sure what the condition is of all of the tanks. Q6 Did you consider building liquefaction for the Passyunk Tank? A6 We have considered it and had CH-IV do a study which has been provided as part of this RFP. Page 1 of 5
Q7 Do you know what the heel design is of the tank? A7 In terms of MCF its 15,000 which equates to 5 feet. Q8 What is the boil off capacity? And are you putting it back. A8 Daily boil off is a 200-250 MCF a day. It compresses at about 100 psig. The capacity for each boil off compressor is 360 MCF per day. Q9 The inner LNG tank material is 2% nickel? A9 Yes. Q10 Is the site completely asbestos free? A10 No. Whenever we have work done in areas with potential asbestos materials we take a sample and have it tested. Some areas are marked. Q11 In a typical year how many days do you vaporize? A11 It varies if it s a warm winter 2-3 days. If it s a cold winter it could be 5 or 10 days. It s typically on for one-two hours in the morning. Q12 What is your pressure on the supply side? A12 Pressure into the plant from the gate stations is approximately 110 psig. There is another supply with pressure between 300 and 450 psig Q13 Is Passyunk a Keystone zone from a tax stand point? A13 PGW is tax-exempt. Q14 Where is the access for entrance when unloading trucks? Passyunk? A14 They enter through the Passyunk Plant front gate off Frontage Road to the unloading area and then they circle around and out the same gate. Q15 Q16 Q17 Do you have a setup already to offload trucks at Passyunk? A17 Yes. Some upgrades to the infrastructure and instrumentation would be necessary. Q18 Do you have a sense for what temperature you make the LNG in Richmond and what it is stored at Passyunk at? A18 Between negative 245 to negative 255 degrees. Page 2 of 5
Q19 What about if we wanted to install a 1200 to 1500 horsepower gas powered compressor versus electric. Is that something that could be done? PHILADELPHIA GAS WORKS A19 Yes. It could be done at either plant. Richmond has a Title V permit and Passyunk a Synthetic Minor. Both have installed emission capacity well below permit limits. Permitting through the Philadelphia Air Management would be required. Q20 What is the cost per kilowatt? A20 Approximately $0.080/ kwh. Q21 What options would be best for building a facility at Passyunk A21 Partner-Build Own Operate Maintain Plant? PGW builds, owns, operates, and maintains the proposed LNG expansion, but the third party funds construction and is entitled to purchase the incremental output for a defined period. The third party investment is returned via a right to purchase reduced price LNG for a specific time period Lease-Leaseback (LL) The third party leases a construction area at the facility, funds and builds the LNG expansion plant, and sub-leases the land and plant back to PGW. At the end of the lease term the asset would transfer to PGW. Lease-Contract (LC) PGW leases land for expansion and portion of storage space to a third party which funds, builds and owns the LNG expansion plant, and PGW contracts for production capacity from that facility to meet its needs. Page 3 of 5
Q22 With the propane air, did you own and operate it? A22 Yes. It was all used for peak shaving. Q23 Is there a past history of PGW leasing a portion of its property A23 PGW has leased property across the street from Richmond Plant. to others or is it usually maintained by PGW? Q24 What kind of pricing would we have to pay for gas from the Transco line? A24 Deliverability Zone 1-6 Fuel Rate 3.32% FT Reservation $0.50534 Usage/Commodity $.044990 ACA Annual Cost Adjustment Charge $0.00140 Total w/o fuel $0.55173 Q25 How many different permitting government agencies do you A25 Refer to the 4-26-16 Questions and Answers A25. have to work with to build? Q26 What is the permitting process through Philadelphia Licenses and Inspection, is it 60 or 90 days? A26 It can be 60-90 days. There is an expedited service which costs about $600. Q27 Do you have the ability to sell back into Transco at Passyunk? A27 No. Q28 Can we see the transport and contracts for Transco and A28 Yes, we can make them available. TETCO? Q29 Is there a minimum level for Passyunk Plant? A29 15,000 MCF. Q30 Can you hit zero level of LNG in the Passyunk tank? A30 No, you can t pump it all out. The 15,000 MCF would have to Page 4 of 5
vaporize. Q31 Passyunk is just a storage and regasification facility? A31 Yes. Q32 Would there be potentially a Phase 2 or liquefaction at Passyunk? A32 Yes if there is demand and a means to distribute the LNG from Passyunk. Q33 Do you know the width of the easement at Passyunk? A33 We operate some facilities located between Magazine Lane to the Schuylkill River. The maximum width of this easement is 200 feet. The minimum width of this easement is 120 feet. Q34 Do you see much commercial traffic along the Schuylkill A34 No. River? Q35 Did you have much sendout this past winter at Passyunk? A35 This plant is primarily for pressure support. It operated 4 days this year. Q36 Is this a quarter pound system at Passyunk? A36 Passyunk vaporization feeds into a 150 psig system that is then let down into a 35 psig system before it leaves the plant. Q37 How many times did you vaporize in 2014-2015? A37 8 days. Q38 Are you grandfathered at Passyunk also? A38 Yes. The grandfathering is most applicable to the LNG tank and the exclusion zone around the tank. Q39 Is Passyunk a separate track or do you have to take the liquid A39 Richmond and Passyunk are separate options. from the new project? Q40 Do you produce steam through a boiler? A40 Yes, there are 3-45,000 lb/hr, 150 psig Nebraska saturated steam boilers. Q41 Would PGW be able to provide electric power of 10MWH? A41 Some infrastructure would need to be improved to provide 10 MW per hour. Page 5 of 5