Agenda

1
Agenda

• Excelerate technology
• Key considerations for a project
• RWE and Excelerate real projects

2
The distinctive feature of Excelerate vessels
Energy Bridge Regasification Vessels can
discharge cargo in three distinct ways
ConventionalAs LNG through standard liquid
loading arms
GasPortAs vaporous natural gas through the High
Pressure Gas Manifold
Deepwater PortAs vaporous natural gas through an
STL Buoy
The advantage Excelerate vessels offer more
flexibility at lower costs while increasing
security by keeping the LNG vessels away from
heavily populated harbor areas.
3
LNG is a key component in RWEs gas growth
strategy
In the global LNG landscape, RWE and Excelerate
Energy have a solution that nobody else can
offer flexible offshore LNG regasification
Energy Bridge Regasification Vessels
Ship-to-ship-Transfer (STS)
Gateways and GasPorts

• Onboard equipment for the vaporisation of LNG
• Possibility to deliver high pressure natural gas
• Flexibility to discharge the LNG traditionally
  and via high pressure gas connection to a subsea
  buoy

• Highly flexible LNG receiving terminals
• Connecting vessels with downstream delivery
  infrastructure
• Gateways typically located in excess of 10 miles
  from land
• Typically one tenth of the cost of a traditional
  LNG import terminal

• Occurs upstream from the Gateway / GasPort and
  between the LNG load port in the open ocean or in
  a protected body of water
• Allowing the vessels to be used as distinct
  terminals and conventional LNG carriers for the
  long-haul transportation

4
Why Excelerate EnergyEnvironmental Stewardship

• Owns and operates the most environmentally
  friendly fleet of LNG vessels in the world.
• Regasification ships incorporate Selective
  Catalytic Reduction onboard the ship, reducing
  NOx emissions by over 90 compared to other
  similar classed vessels.
• Excelerate developed innovative Heat Recovery
  System to maximise efficiency of regasification
  process and reduce on-board water usage by 98.

5
Why Excelerate EnergyProject leadership -

• 11 regasification ship projects in the world
  Excelerate have developed 6 of them.
• Deepwater buoy based ports
• USA - Gulf Gateway Gulf of Mexico, (Excelerate
  Energy)
• USA - Offshore Boston 2 ports, NEG (Excelerate
  Energy) Neptune
• Italy - OLT (not yet operational)
• Indonesia awaiting award
• Jetty based Ports (GasPorts)
• UK Teesside (Excelerate Energy)
• Brazil 2 ports
• Argentina one operational at Bahia Blanca, one
  under development (both Excelerate Energy)
• Kuwait (Excelerate Energy)

6
Best Practice - Teesside GasPort access to the
UK NBP market

• Fast track project responding to security of
  supply concerns and high market price volitility
• Low CAPEX
• Not operated continuously, only when market
  prices are attractive
• Developed, constructed and operated by Excelerate
  Energy

7
Agenda

• Excelerate technology
• Key considerations for a project
• RWE and Excelerate real projects

8
Key considerations for a project

• Three options are available
• 1 - A GasPort, This is the simplest project, as
  seen in Argentina and the UK.
• Typically fastest (within 12 months) and usually
  the cheapest
• 2 - Deepwater ports can be developed in most
  areas, particularly where significant resistance
  to projects on political or social issues as seen
  offshore Boston (2 projects) and in the gulf of
  Mexico
• These are more expensive and take longer to
  develop 18 24 months.
• 3 - A permanently moored FRSU. Designed to sit at
  one, purpose built location, with the ship
  modified to reload LNG with cryogenic arms. As
  seen in Italy (OLT), Brazil and Dubai
• Typically most expensive, and longest to develop
  due to ship conversion, but long duration aids
  payback.

9
Key considerations for a project

• Often the location determines what type of
  project can be developed
• GasPorts are cheaper and faster to develop, but
  require port infrastructure e.g.
• A Jetty (new or ideally an existing unused one),
• Access to tugs,
• Sheltered from open sea conditions to allow ship
  to ship transfer.
• Deepwater ports can be developed in most areas,
  however sea bed conditions are important.
  Projects are influenced by
• The presence of any existing sub-sea pipelines
  which can be re-used
• Desire to keep gas infrastructure away from shore
  line, public perception of energy infrastructure
  (touristic areas not used to ships,)

10
Key considerations in a project - Scope of
tender

• Clarity as to what you want is essential, Most
  projects split provision of assets from supply
  of LNG due to massive difference in financial
  metrics / political considerations. Options are
• Option 1 - Supply of ship,
• Many suppliers most of which typically are ship
  owners looking for long term placement of a ship
  into a project. e.g. Brazil
• Option 2 - Supply of ship and required
  infrastructure
• Less suppliers, potentially a partnership
  between ship owner and a local partner or
  government owned entity, e.g. Indonesia, Kuwait
• Option 3 - Supply of ship, infrastructure and LNG
  supply
• Few suppliers, mostly oil majors in partnership
  with specialist asset providers.

11
Key considerations in a project Term / Duration
/ Continuity

• Term - Part year vs Full year
• Kuwait is only 6 months per year, Argentina also
  started as part year. Designed to meet high
  summer or winter loads and improve security of
  supply.
• Many projects are year round, e.g. Brazil
• Duration - Annual renewal versus longer term
  contract
• Ship owners want full life of vessel projects
  (ideally 20 years, some projects with 10 year
  initial term with extension).
• Short terms enables project to satisfy market /
  country requirements (can be operational whist
  need of project is confirmed)
• Continuity of gas supply - Does it need to be
  uninterrupted ?
• If so, Ship to ship transfer is key
  consideration, (weather limits etc)
• Impacts choice of assets and/or operator

12
Key considerations in a project Risk Allocation

• Reliability and availability of vessel
• Most suppliers will offer performance guarantees,
  but only for part of the daily fee. They will not
  cover your losses (consequential losses)
• Many suppliers are offering theoretical figures
  as they have limited experience in operating
  regasification vessel.
• Ship age / lifetime - Some projects specify a
  project lifetime and a ship age
• Older ships may be cheaper if converted (often
  not however), but may be more un-reliable in the
  long term.
• Cargo size will impact on ship age (only recently
  have ships been constructed above 138,000m3
  capacity)
• Operator experience
• Some operators have no direct Re-gas experience
• Ship to ship transfer experience can be key

13
Key considerations in a project Construction
risk / lead time

• Construction risk
• Delays and overspends on land based assets do
  occur.
• Many supplier will look for a local partner to
  handle. High risk for them to take liability so
  will charge large premium.
• Often pressure for pass through. You know the way
  your country works better than the foreign
  company.
• Project lead time / Duration of works.
• Many key equipment items are long lead e.g. High
  pressure gas arm, sub sea equipment. Gas pipeline
• Some supplier will need to covert a ship / build
  a new one.

14
Key considerations in a project Construction /
Environment

• Construction
• Provision of permits
• Some take longer to achieve than the construction
• Often faster if obtained by local established
  company
• Seen as key area of uncertainty by developer
• Environmental standards
• Requirements for ship (emissions etc),
• Requirements for port can effect economics e.g.
  Water usage (open loop vs closed loop heating of
  LNG)
• Monitoring of emissions (land standards vs.
  marine standards)

15
Agenda

• Excelerate technology
• Key considerations for a project / tender
• RWE and Excelerate real projects

16
RWE GLOBAL UPSTREAM LNG ACTIVITIESRWE and
Excelerate Commercially Controlled Assets
Excelerate Energy If Essent acquisition is
approved RWE will have a 5 equity capacity in
GATE
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GasPort - Dockside LNG Regasification

• Quick to market, low cost solution using existing
  or new jetty infrastructure
• Each project has unique attributes
• Teesside is a flexible delivery point, providing
  exposure to NBP pricing
• Bahia Blanca started as S.A. winter supply, but
  has operated year-round since May 2009
• Mina Al-Ahmadi is a summer supply project, with
  high baseload flows
• Low cost to construct at 10 of a conventional
  LNG terminal cost
• 6 months to construct. 12 month overall lead
  time from final investment decision.

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GasPort equipment
19
GasPort equipment
20
Excelerate vessel commissioning FRSU
High pressure gas arm
Cryogenic LNG loading arms
Excelerate regasification Vessel
Cryogenic LNG Un-loading arms
FRSU
21
Excelerate market solutions
Summary of Excelerate projects
GasPort Bahia Blanca
GasPort Teesside
GasPort Kuwait
Deepwater port Gulf Gateway
Deepwater port NE Gateway

• Most basic design, re-use of existing jetty, Ship
  to ship transfer at jetty. Permitting and gas
  pipeline completed by Government company. GasPort
  owned / operated by Government, EE provide
  supervision and LNGRV.

• Again basic design, re-use of existing jetty.
  Permitting and construction of gas pipeline
  connection completed by EE. GasPort owned /
  operated by EE. Terminal used when commercial
  opportunities arise.

• Comprehensive design. Reconstruction of jetty,
  dual ship to ship transfer along jetty. EE acted
  as EPC contractor for entire construction.
  Terminal owned by Kuwait government and to be
  operated by them. EE to provide LNGRV and to
  supervise operations.

• Single underwater buoy, re-use of existing
  sub-sea pipelines and metering platform. Terminal
  owned and operated by EE. Terminal used when
  commercial opportunities arise

• 2 underwater buoys, construction of a sub-sea
  pipeline. Terminal owned and operated by EE.
  Terminal used when commercial opportunities arise

Description
Cost 5 of a traditional terminal
Cost 10 of a traditional terminal
Cost 25 of a traditional terminal
Cost 15 of a traditional terminal
Cost 20 of a traditional terminal
Cost
11 months
12 months
24 months
18 months
20 months
TimelineConcept to operations
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Actual constructed project timelines
Bahia Blanca, Argentina
Preliminary discussions
Permitting
Construction
Teesside, UK
Mina Al-Ahmadi, Kuwait
Gulf Gateway, USA
Northeast Gateway, USA
5
10
15
20
25
30
35
40
45
Time - months
23
Why Excelerate EnergyEnvironmental Stewardship

• Owns and operates the most environmentally
  friendly fleet of LNG vessels in the world.
• Regasification ships incorporate Selective
  Catalytic Reduction onboard the ship, reducing
  NOx emissions by over 90 compared to other
  similar classed vessels.
• Excelerate developed innovative Heat Recovery
  System to maximise efficiency of regasification
  process and reduce on-board water usage by 98.

24
Ship to ship transfer of LNG

• Rationale
• Increases flexibility, enables more spot cargo
  opportunities, regardless of LNGRV logistics
• Enables LNGRVs to be located closer to GasPorts /
  Gateways, increasing time on regas operations
• Enhances fleet economics, enabling short term
  charter of 3rd party vessels for Excelerate
  operations
• Possible to deliver continuous gas flow for
  extended periods from a single LNGRV

• Progress
• Method and equipment installed and tested
  successfully
• 100 highly successful STS operations completed to
  end 2010.
• Methods and procedures examined by SIGTTO working
  party, operation observed by 3rd parties
  including SIGTTO and US Coast Guard

25
Summary of contracts that Excelerate has entered
into over recent years
Role of Excelerate
Other Information
Gas Ports Project Owner (GasPort Teesside,
Deepwater port Gulf Gateway and NE Gateway)

• Project developer responsible for engineering,
  procurement, construction and commissioning and
  operations of the facility

• Financed by Excelerate owners

Consulting(GasPort Bahia Blanca)

• Project developer responsible for engineering,
  procurement, construction and commissioning of
  the facility

• Financed by 3rd party owner with Excelerate
  retaining ownership of high pressure gas
  offloading arm

EPC Contract(Mina Al-Ahmadi GasPort - Kuwait)

• EPC Contractor - responsible for engineering,
  procurement, construction and commissioning of
  the facility

• Financed by KNPC and Excelerate
• Construction of GasPort capable of receiving two
  LNG vessels allowing across the dock ship 2 ship
  transfer of LNG

Regasification Storage Services(KNPC, Repsol
YPF)

• The provision of on-board LNG storage and
  regasification services
• The service provider

• Only two such agreements in the world (both
  agreements with Excelerate)

LNG Sale / Purchase Agreement(Total, Mitsubishi,
Shell, LNG Japan)

• LNG Master Sales and Purchase Agreements, where
  Excelerate is party to contract

• Excelerate has entered into similar agreements
  with over twenty other counterparties, however,
  confidentiality obligations to these
  counterparties prevents Excelerate from
  identifying them here

Acquisition or lease of Energy bridge
regasification vessels

• Project Developer responsible for development
  of Energy Bridge Regasification Vessels
  incorporating onboard equipment for vaporization
  of LNG and delivery of high pressure natural gas

• First vessel delivered in 2005, a further 5
  vessels delivered as of August 09. 3 more
  vessels on order

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Excelerate Energy proved to be a strong and
reliable partner

• Ability to go from concept to execution in a
  short period of time
• Developed all projects to meet exact client
  requirements

Fast delivery

• Eight Regasification ships in fleet (by mid 2010)
  allows for greater flexibility
• The only company that can meet tight project
  deadlines Ships already available, not built
  for specific projects.
• Can provide both short or longer term services
• Pioneered ship to ship transfer safely and years
  ahead of our competitors

Excelerate Energy
Strengths as a Partner
Flexible fleet
A strong track record of success

• Built facilities in record times
• Operate 5 facilities around the world to highest
  safety and environmental standards