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The Northeast GatewayEnergy Bridge Deepwater Port

---Project Update and Review

January 20, 2006

The Northeast GatewayEnergy Bridge Deepwater Port

---Project Update and Review

January 20, 2006

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Northeast Gateway Energy BridgeDeepwater Port Project Facts

• Based on Excelerate Energy’s 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 Bridge™System Overview

High Pressure PumpsAnd Vaporizers

Reinforced LNGStorage Tanks

Energy Bridge™Regasification Vessel

TractionWinch

BuoyCompartment

OversizedBoiler

The Energy Bridge™ system

is based on proven

technology used for over a

decade in the harsh North Sea

marine environment

When not in use, the buoy will

remain 80 to 90 feet below the

surface

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Energy Bridge™Mooring System Components

STLBuoy

FlexibleRiser

Energy Bridge™Regasification Vessel

Subsea Pipeline To Shore

AnchorLines

SubseaManifold

The Submerged Turret Loading (STL™) buoy

was developed by Advanced

Production and Loading

With this system, Energy Bridge™

has minimal installed

infrastructure and therefore

minimal environmental

impact

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Energy Bridge™ OperationGeneral Overview

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Gulf Gateway Energy Bridge™Commissioned 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 >99% 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

Gulf Gateway Energy BridgeGulf Gateway Energy Bridge

Image courtesy of HurricaneTrack.com

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Hurricane Katrina TimelineFor Gulf Gateway and EBRV Excellence

Map Courtesy of AccuWeather, Inc.

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

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Hurricane Rita’s PathApproximately 25 Miles From The Eye

Gulf Gateway

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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 Governor’s 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. Romney’s 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 < 0.5 feet per second

EBRV Design UseInitial Intake

(MGD)Initial Discharge

(MGD)Reduced

Intake (MGD)Reduced

Discharge (MGD)

Engine Cooling Condenser 46.9 46.9 0 0

Main Seawater Cooling 5.9 5.9 0 0

Ballast Water 1.87 0 1.87 0

Water Curtain 0.6 0.6 0.6 0.6

Freshwater Generator 0.3 0.3 0.3 0.27

Hoteling and Sanitary Services N/A 0.317 N/A 0.005

Total 55.57 54.017 2.77 0.88

% of Original Water Use 5% 2%

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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 A&M Galveston (current)

– Cadets serving from Mass & Maine Maritime (forthcoming)

– Goal is to increase the base of skilled US crewmembers

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LNG SupplyExcelerate’s 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

• 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

Gulf Gateway

NortheastGateway

Malaysia

Egypt

NigeriaTrinidad

Cargoes Confirmed

Cargoes Delivered

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Northeast GatewayLooking Forward to Serving Massachusetts