The Northeast Gateway

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The Northeast Gateway Energy Bridge Deepwater
Port --- Project Update and Review January 20,
2006
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Northeast Gateway Energy BridgeDeepwater Port
Project Facts

• Based on Excelerate Energys proprietary Energy
  Bridge shipboard regasification technology
• Port will be located in federal waters roughly 13
  miles south-southeast of Gloucester
• A dual-buoy system will be capable of ensuring
  continuous delivery of natural gas
• Throughput capacity available will range from 400
  to over 800 MMcf/d
• Only project that can be in-service by 2007

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Energy Bridge Technology
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Energy BridgeSystem Overview
The Energy Bridge system is based on proven
technology used for over a decade in the harsh
North Sea marine environmentWhen not in use,
the buoy will remain 80 to 90 feet below the
surface
Energy Bridge Regasification Vessel
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Energy BridgeMooring System Components
The Submerged Turret Loading (STL) buoy was
developed by Advanced Production and
LoadingWith this system, Energy Bridge has
minimal installed infrastructure and therefore
minimal environmental impact
Energy Bridge Regasification Vessel
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Energy Bridge OperationGeneral Overview
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Gulf Gateway Energy BridgeCommissioned March
17, 2005
Gulf Gateway Energy Bridge Deepwater Port
Regasification Vessel Excelsior Docked and
Vaporizing
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EBRV Shipping FleetFive Vessels Strong

• First generation vessels are of identical design
  at 138,000 m3 of LNG (3 Bcf) with a peak sendout
  rate of 450 MMcf/d
• Excelsior January 2005
• Excellence May 2005
• Excelerate October 2006
• Second generation vessels are larger at 150,900
  m3 (3.3 Bcf) with a peak sendout rate of 600
  MMcf/d
• TBN Explorer March 2008
• TBN Express 2009
• Excelerate has also chartered the conventional
  LNG Carrier Excalibur (sister ship to the first
  generation EBRVs)
• Excelerate has the assets in place for a 2007
  delivery schedule

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Northeast Gateway Deepwater Port
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Northeast Gateway Deepwater PortSiting
Complexities
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Northeast Gateway Energy BridgeDeepwater Port
Operations

• Northeast Gateway designed as a baseload facility
• Design based on extreme Massachusetts Bay
  conditions
• Statistical analysis reveals gt99 weather
  availability
• Flexible output possible to meet market needs
• During periods of peak demand, two EBRVs can be
  simultaneously accommodated
• EBRVs have the ability to rapidly increase and
  decrease delivery rate
• Port can accommodate larger vessels (up to
  250,000 m3) to maximize future throughput

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Severe Weather Capability
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Gulf Gateway Performance Hurricane Katrina
Landfall
Image courtesy of HurricaneTrack.com
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Hurricane Katrina TimelineFor Gulf Gateway and
EBRV Excellence

• 8/19 EBRV Excellence arrives at Gulf Gateway
  starts the commissioning process
• 8/25 Hurricane Katrina makes landfall in Florida,
  expectation is it will trend north
• 8/26 Hurricane Katrina enters the Gulf of Mexico,
  strengthening to a Category 5 storm by 8/28
• 8/28 EBRV Excellence continues operations with 5
  to 6 meter sea states and 50 knots winds
• 8/30 Discharge successfully completed with no
  interruptions due to weather

Map Courtesy of AccuWeather, Inc.
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Hurricane Ritas PathApproximately 25 Miles From
The Eye
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The Need for Additional Natural Gas
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The Need for Natural GasIn The Northeastern US

• Northeast Gateway reviewed supply demand
  forecasts by
• U.S. Energy Information Administration (EIA)
• Federal Energy Regulatory Commission (FERC)
• Congressional Research Service (CRS)
• Northeast Gas Association (NGA)
• National Petroleum Council (NPC)
• National Commission on Energy Policy (NCEP)
• Power Planning Committee of New England
  Governors Conference
• Conservation Law Foundation (CLF)
• Independent analyses are consistent in their
  recognition that a near-term need exists

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Timing BenefitsNortheast Gateway Deepwater Port

• Analysis Group Market Study
• Identified need as soon as 2007
• Consistent with independent studies
• Hurricanes Katrina and Rita highlighted regional
  vulnerability
• Critical infrastructure must be developed now to
  meet demand
• Early project implementation provides a buffer to
  demand forecasts
• Meets timing of earliest forecasted need
• Enables prove-up ahead of a potential gas
  crisis
• Northeast Gateway can be in service by 2007

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Deepwater Port Review Process
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Northeast Gateway DWPApplication History

• Northeast Gateway voluntarily agreed to undergo
  concurrent MEPA review
• MEPA process likely to be used as basis for Gov.
  Romneys approval
• Forum for state and local stakeholder involvement
  in the process
• Environmental Notification Forms (ENFs) filed
  with the state in March 2005 for the Port and
  Pipeline Lateral
• Northeast Gateway (Excelerate) to build, own and
  operate the Port
• Algonquin Gas Transmission to build, own, and
  operate the pipeline
• DWPA application was filed on June 13
• Over a year of public and agency outreach efforts
• Six-month pre-filing process with state and
  federal agencies

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Northeast GatewayApplication Process and Timeline

• ENFs filed with EOEA March 15, 2005
• DWP Application filed with USCG June 13, 2005
• Completeness Determination August 18, 2005
• Data Request (Clock Stopped) November 18, 2005
• Response to Data Request December 2005
• Clock Resumption (Pending) January 2006
• Record of Decision September 2006
• Final License and Related Permits 4Q 2006
• Construction commencement 1Q 2007
• Commencement of Operations 3Q 2007

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Environmental Benefits of the Northeast Gateway
Deepwater Port
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Environmental ImprovementsResult of Existing
Operations

• Northeast Gateway has committed to significantly
  reduce water usage on existing and future ships
• Intake and discharge reduced over initial
  expectations by 95
• Intake velocity reduced to lt 0.5 feet per second

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Environmental ImprovementsResult of Existing
Operations

• Northeast Gateway has committed to significantly
  reduce air emissions as well
• Addition of selective catalytic reduction
  technology and operational improvements
• Existing ships that will call on Northeast
  Gateway
• New ships under construction
• Project is not considered to be a major source of
  air pollution
• NOX emission levels will be less than 50 tons per
  year
• CO2 emission levels will be less than 100 tons
  per year
• Project is not subject to Federal stationary new
  source permitting requirements (PSD / NSR
  regulations) at these levels
• Northeast Gateway will have the benefits of these
  improvements from the first day of operations

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Northeast Gateway Deepwater PortAdditional
Points of Note

• Project commitments have been made early (and
  substantially at risk) to keep target timing
• Commitments outstanding for a total of 5 EBRVs
• Subsea coring and extensive analysis conducted
  early
• Buoy contract executed with APL (buoy
  manufacturer)
• Excelerate Energy has worked with MARAD to
  establish a cadet program on its LNG vessels
• Cadets serving from Texas AM Galveston (current)
• Cadets serving from Mass Maine Maritime
  (forthcoming)
• Goal is to increase the base of skilled US
  crewmembers

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LNG SupplyExcelerates Global Reach
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LNG SupplyA Global Marketplace

• LNG is a global commodity, with sources around
  the world
• U.S. markets are of key interest to suppliers to
  diversify their price exposure and supply a
  growing need
• Excelerate Energy, parent company of Northeast
  Gateway, has secured LNG from suppliers around
  the world
• Additional LNG supplies are presently coming to
  market with more before the commissioning of
  Northeast Gateway
• Existing sources are expanding / new supply is
  being added throughout the Atlantic Basin
  (Trinidad, Egypt, Nigeria, Qatar, Oman, etc.)

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LNG Supplier Relationships2005 Cargo Commitments
Cargoes Confirmed
Cargoes Delivered

• Gulf Gateway commenced operations in March 2005
• First EBRV Excelsior came into service in January
  2005
• Second EBRV Excellence came into service in May
  2005

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Northeast GatewayLooking Forward to Serving
Massachusetts