Innovations for the Global LNG IndustryInnovations for the Global LNG Industry

Bringing Continents of Energy TogetherBringing Continents of Energy TogetherMarine Technology SocietyMarine Technology Society

March 22, 2007March 22, 2007

Kathleen Eisbrenner

President and Chief Executive Officer

Excelerate Energy

Excelerate Energy OverviewExcelerate Energy Overview

~~ First and only company in the world to develop, construct, and First and only company in the world to develop, construct, and operate an offshore LNG receiving facilityoperate an offshore LNG receiving facility

~~ First and only company in the world to develop, construct and First and only company in the world to develop, construct and operate a dockside LNG receiving facilityoperate a dockside LNG receiving facility

~~ First and only company to complete commercial LNG ship to ship First and only company to complete commercial LNG ship to ship transfer operationstransfer operations

SoonSoon……..

~~ First and only company to develop, construct and operate an First and only company to develop, construct and operate an offshore LNG receiving terminal on the U.S. East Coastoffshore LNG receiving terminal on the U.S. East Coast

The Traditional LNG Value ChainThe Traditional LNG Value Chain

LNGShipping

LiquefactionPlant

Natural GasProduction

Regasification Terminal

The Excelerate LNG Value ChainThe Excelerate LNG Value Chain

LNGShipping

LiquefactionPlant

Natural GasProduction

Regasification Terminal

Energy BridgeEnergy Bridge™™ Regasification VesselsRegasification VesselsProvide Natural Gas Delivery in Three WaysProvide Natural Gas Delivery in Three Ways

Energy BridgeEnergy Bridge™™ was primarily designed to access markets unreachablewas primarily designed to access markets unreachableby conventional meansby conventional means……

Energy Bridge™Deepwater Port

ConventionalLand-Based Terminal

……however, its economics are competitive with a conventional,however, its economics are competitive with a conventional,landland--based LNG terminal based LNG terminal –– with added flexibility benefitswith added flexibility benefits

ExcelerateGasPort™

Energy BridgeEnergy Bridge™™ Regasification VesselsRegasification VesselsLocation of the Three Discharge PointsLocation of the Three Discharge Points

High PressureGas Manifold

STL Buoy

ConventionalLNG Manifold

High Pressure PumpsAnd Vaporizers

Reinforced LNGStorage Tanks

Energy Bridge™Regasification Vessel

TractionWinch

BuoyCompartment

OversizedBoiler

Energy BridgeEnergy Bridge™™ Deepwater Port Deepwater Port STL Subsea Buoy SystemSTL Subsea Buoy System

The Energy The Energy BridgeBridge™™system is based system is based on proven on proven technology technology used for over a used for over a decade in the decade in the harsh North harsh North Sea marine Sea marine environmentenvironment

When not in When not in use, the buoy use, the buoy remains 80 to remains 80 to 100 feet below 100 feet below the surfacethe surface

Energy BridgEnergy Bridgee™™ TechnologyTechnologyMakes GasPort PossibleMakes GasPort Possible

High PressureGas Manifold

Allows delivery of regasified Allows delivery of regasified LNG directly into a gas LNG directly into a gas

pipeline installed on the jettypipeline installed on the jetty

EBRVs come with a high pressure EBRVs come with a high pressure gas manifold as standard gas manifold as standard equipmentequipment

Excelerate EnergyExcelerate Energy’’ssCurrent Market Access NetworkCurrent Market Access Network

~~ Gulf Gateway deepwater portGulf Gateway deepwater port~~ Commissioned March 2005Commissioned March 2005~~ 500 mmcf/d baseload500 mmcf/d baseload~~ 690 mmcf/d peak690 mmcf/d peak

~~ NortheastNortheast Gateway deepwater portGateway deepwater port~~ InIn--service December 2007service December 2007~~ 400 mmcf/d baseload400 mmcf/d baseload~~ 800+ mmcf/d peak800+ mmcf/d peak

~~ Teesside GasPortTeesside GasPort™™~~ Commissioned February 2007Commissioned February 2007~~ 400 mmcf/d baseload400 mmcf/d baseload~~ 600 mmcf/d peak600 mmcf/d peak

Long permitting process may hinder Long permitting process may hinder development of future LNG projects: development of future LNG projects:

ExcelerateExcelerate’’ss ExperienceExperience

~~ The U.S. (Northeast Gateway)The U.S. (Northeast Gateway)~~ Overlapping jurisdiction and Overlapping jurisdiction and

responsibilities among responsibilities among AgenciesAgencies

~~ Evolving rules and policies for Evolving rules and policies for approving (offshore) projectsapproving (offshore) projects

~~ Results is a lengthy and Results is a lengthy and complex processcomplex process

~~ The UK (Teesside GasPort)The UK (Teesside GasPort)~~ Defined jurisdiction and Defined jurisdiction and

responsibilities among responsibilities among AgenciesAgencies

~~ Established rules and policies Established rules and policies for approving projectsfor approving projects

~~ All parties driven to see All parties driven to see project going through project going through –– very very short processshort process

Impact to Permitting Timeline:US (Federal = 18 months; State = 4 months; Overall = 22 months)

UK (Overall = 3 months)

0 22

Hurricane RitaHurricane Rita’’s Paths PathApproximately 25 Miles From The EyeApproximately 25 Miles From The Eye

Gulf Gateway

Source: NOAA

Hurricane Katrina Timeline For Gulf Gateway Hurricane Katrina Timeline For Gulf Gateway / EBRV Excellence/ EBRV Excellence

Source: AccuWeather, Inc.

8/198/19 EBRV Excellence arrives at EBRV Excellence arrives at Gulf Gateway & starts the Gulf Gateway & starts the commissioning processcommissioning process

8/258/25 Hurricane Katrina makes Hurricane Katrina makes landfall in Florida, expectation landfall in Florida, expectation is it will trend northis it will trend north

8/268/26 Hurricane Katrina enters the Hurricane Katrina enters the Gulf of Mexico, strengthening Gulf of Mexico, strengthening to a Category 5 storm by 8/28 to a Category 5 storm by 8/28

8/288/28 EBRV Excellence continues EBRV Excellence continues operations with 5 to 6 meter operations with 5 to 6 meter sea states and sea states and ≈≈50 knots 50 knots windswinds

8/308/30 Discharge successfully Discharge successfully completed with no completed with no interruptions due to weatherinterruptions due to weather

EXCELSIOR Docked at Teesside GasPortEXCELSIOR Docked at Teesside GasPortFebruary 12, 2007February 12, 2007

~~ Second operational LNG receiving facility in the United KingdomSecond operational LNG receiving facility in the United Kingdom

~~ Site selection to inSite selection to in--service in 12 monthsservice in 12 months

~~ Low capital cost, high flexibility asset for LNG impactLow capital cost, high flexibility asset for LNG impact

Development TimelineDevelopment TimelineChronology of Teesside GasPortChronology of Teesside GasPort

~~ Global price differentials for Global price differentials for upcoming winters reveal a market upcoming winters reveal a market opportunityopportunity

~~ Excelerate teams with Gas Strategies Excelerate teams with Gas Strategies to identify best sites in UK for to identify best sites in UK for GasPortGasPort

~~ Teesport identified as an ideal Teesport identified as an ideal location location –– discussion on possible discussion on possible locations ensueslocations ensues

~~ Agreement reached with PD Teesport Agreement reached with PD Teesport to locate on a disused crude jetty to locate on a disused crude jetty ––the Excelerate Jetty is bornthe Excelerate Jetty is born

~~ Design work commencesDesign work commences--planning planning application filedapplication filed

~~ EPIC contract executed EPIC contract executed ––construction commencesconstruction commences

~~ Planning permissions received Planning permissions received ––investment to date over investment to date over ££10 million10 million

~~ Detailed risk assessments performed Detailed risk assessments performed with close regulatory coordinationwith close regulatory coordination

~~ First cargo arrival and dischargeFirst cargo arrival and discharge!!

July 2005

December 2005

February 2006

June 2006

August 2006

February 2007

GasPort Offloading ArmGasPort Offloading ArmBrings It All AshoreBrings It All Ashore

~~ HighHigh--pressure gas arm pressure gas arm capable of accommodating capable of accommodating full flows of up to 600 full flows of up to 600 million cubic feet per day million cubic feet per day (17 mcmd)(17 mcmd)

~~ Designed to accommodate Designed to accommodate a wide tidal range while a wide tidal range while Energy Bridge Energy Bridge Regasification Vessels are Regasification Vessels are moored at the jettymoored at the jetty

~~ Quick connect / quick Quick connect / quick disconnect coupling allows disconnect coupling allows for rapid for rapid ““drydry--breakbreak””separation in an emergencyseparation in an emergency

Latest InnovationLatest Innovation

Teesside GasPortTeesside GasPortAbove Ground Installation (AGI)Above Ground Installation (AGI)

LNGC ExcaliburLNGC ExcaliburAt Anchor At Anchor –– Scapa FlowScapa Flow

Ship to Ship Transfer February 8-10, 2007

EBRV Excelsior EBRV Excelsior Mooring ApproachMooring Approach

Ship to Ship Transfer February 8-10, 2007

EBRV ExcelsiorEBRV ExcelsiorHoses Rigged and ReadyHoses Rigged and Ready

Ship to Ship Transfer February 8-10, 2007

Coming AlongsideComing Alongside

Ship to Ship Transfer February 8-10, 2007

Mooring With Tugboat AssistanceMooring With Tugboat Assistance

Ship to Ship Transfer February 8-10, 2007

Vessels Alongside On FendersVessels Alongside On FendersExcelsior Cooled DownExcelsior Cooled Down

Ship to Ship Transfer February 8-10, 2007

Connecting HosesConnecting Hoses

Ship to Ship Transfer February 8-10, 2007

Full Rate Cargo Transfer (5,000 mFull Rate Cargo Transfer (5,000 m33/hr)/hr)

Ship to Ship Transfer February 8-10, 2007

Draining and Purging HosesDraining and Purging Hoses

Ship to Ship Transfer February 8-10, 2007

Vessels Letting Go Mooring LinesVessels Letting Go Mooring Lines

Ship to Ship Transfer February 8-10, 2007

Vessels SeparatedVessels Separated

Ship to Ship Transfer February 8-10, 2007

STS Transfer STS Transfer –– Scapa Flow Scapa Flow Time Log (Hours)Time Log (Hours)

~~ Rigging FendersRigging Fenders 1.01.0~~ Approach ManeuverApproach Maneuver 1.91.9~~ MooringMooring 1.91.9~~ PrePre--Transfer Safety MeetingTransfer Safety Meeting 1.01.0~~ Connecting HosesConnecting Hoses 2.52.5~~ Hose Purge & Cool DownHose Purge & Cool Down 4.04.0~~ Emergency Shut Down TestEmergency Shut Down Test 0.70.7~~ Cargo TransferCargo Transfer 25.825.8~~ Hose Drain and PurgeHose Drain and Purge 2.02.0~~ Disconnect HosesDisconnect Hoses 2.02.0~~ Letting Go Mooring LinesLetting Go Mooring Lines 0.90.9~~ Separate VesselsSeparate Vessels 0.30.3~~ Recover FendersRecover Fenders 1.01.0~~ TOTAL STS TRANSFER OPERATIONTOTAL STS TRANSFER OPERATION 45.045.0

To date, Excelerate Energy traded 25 LNG To date, Excelerate Energy traded 25 LNG cargoes since early 2005cargoes since early 2005

Loading terminals

Discharge terminals

Flexible Cargo HistoryFlexible Cargo History

Loaded in Trinidad and Tobago

5% discharged via dockside to commission Teesside GasPortSts in Scapa Flow

90% discharged as liquid at Cove Point5% discharged via the buoy at Gulf Gateway

WhatWhat’’s Nexts Next

Northeast GatewayNortheast Gateway

Pakistan GasPortPakistan GasPort

Implications from the Excelerate Value ChainImplications from the Excelerate Value Chain

ExcelerateExcelerate’’s Network and Technology Offer Significant Contributionss Network and Technology Offer Significant Contributions

~~ Low capital cost offers inexpensive insurance plan (aprox $50 MMLow capital cost offers inexpensive insurance plan (aprox $50 MM) for ) for markets/ suppliersmarkets/ suppliers

~~ Dramatic reduction in capital concentration reduces risks and soDramatic reduction in capital concentration reduces risks and some me costscosts

~~ Time to InTime to In--Service reduced by 75%Service reduced by 75%

~~ MultiMulti--point delivery approach mitigates risk, and creates combination point delivery approach mitigates risk, and creates combination of of liquidity points and high value market accessliquidity points and high value market access

~~ StS technology breaks LNG logistics paradigmStS technology breaks LNG logistics paradigm