Liquefied Natural Gas Industry and Pacific NorthWest LNG Project Update July 14, 2014

Greg Kist, President Pacific NorthWest LNG

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Operational & Under Const'n New Supply Demand

MTPA

Global LNG Material Balance

Current market tightness expected to remain until 2019

MTPA

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Pacific Contracted Pacific Uncontracted Atlantic Contracted (Base Case) Pacific New Supply Demand

Pacific LNG Material Balance

New projects will ease the gap temporarily

B.C.’s LNG Advantage

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Big Canadian Aspirations (based on NEB export license applications)

Project Location LNG mtpa

Partners

1 Pacific NorthWest Prince Rupert 19.7 PETRONAS, Japex

2 LNG Canada Kitimat 24.0 Shell, PetroChina, KoGas, Mitsubishi

3 Kitimat LNG Kitimat 10.0 Chevron, Apache

4 Prince Rupert LNG Prince Rupert 21.6 BG Group

5 BC LNG Co-op Kitimat 1.8 Cooperative/Golar

6 WCC LNG TBD 30.0 Exxon/Imperial

7 Woodfibre LNG Squamish 2.1 Pacific Oil & Gas

8 Triton LNG TBD 2.3 AltaGas, Idemitsu

111.5

Largest LNG Producer

Qatar 80 Existing capacity

Expected to be the largest LNG Producer

Australia 120 Existing (20) + under construction + planned

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Project Overview

• Proposed development on Lelu Island administered by the Prince Rupert Port Authority

• 2 trains of 6 million tonnes per annum; option for a third; Lelu Island likely capable of hosting a fourth train

• Initial estimate of facility capital cost in range of $11 billion capital

• Triple FEED approximately 90% complete

• Final investment decision expected late 2014

• Construction slated to occur 2015-2018

• First cargo anticipated in early 2019

• Partners now represent 38% of integrated project

• Environmental Impact Statement filed on February 28, 2014; Decision anticipated late in 2014

Company Overview

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Project Timeline

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Project Schedule

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Key Activities 2012 2013 2014 2015 2016 2017 2018 2019

Regulatory Review Process

• Submit Project Description

• Submit EA

Front End Engineering Design (FEED) Competition

• Submission of EPCC Bids

Final Investment Decisions (FID)

Engineering Procurement Construction and Commissioning (EPCC)

First Cargo

52 Months to RFSU

Environmental Application

• In dual EA process

• Additional information request has come from CEAA

• Developing responses to the request

• PNW is the first LNG terminal to go through the revised CEAA 2012 process

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Facility Location

• Site is Lelu Island near Prince Rupert

• Secured exclusivity of the site until FID and subject to execution of Project Development Agreement (PDA)

• Feasibility Assessment Agreement requires both parties to execute definitive agreements which is anticipated in July 2014

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Prince Rupert Port Authority - Federal

• Lelu Island located in the District of Port Edward (pop. ~600)

• Land is administered by the Prince Rupert Port Authority.

• Next nearest town is Prince Rupert (pop. ~12,500)

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Potential BG site

Pacific NorthWest LNG Facility Overview

• Two liquefaction plants

• Two LNG storage tanks

• Expansion capability to 3 trains

• A bridge connecting Lelu Island to Port Edward

• Power generation infrastructure

• Administrative buildings

• Materials offloading facility

• A jetty trestle and marine terminal

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Typical LNG Plant Plot Plan

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Plot plan includes space for: i. 2 + 1 trains of 6 MTPA/train ii. 2 + 1 LNG tanks iii. Flare system iv. General offices v. Layout and construction camp vi. Material Offloading Facilities

(MOF) vii. LNG jetty, trestle and 2 berths viii.Bridge from mainland

PETRONAS Shipping

• PETRONAS has one of the largest LNG carrier fleets in the world

• Operates Malaysian Maritime Academy

• Not all vessels will be PETRONAS vessels but all vessels calling will comply with PETRONAS standards

PETRONAS Fleet

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Substantial Economic Benefits

• $11 billion investment

• Up to 4,500 construction jobs at peak

• 330 local jobs in operation

• Over 300 spinoff jobs in the community

• 1.3 billion new tax revenues

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“Nation Building” Scale of Investment

• Recognize that we are in an extremely competitive energy world

• Capital will move quickly to the highest, risk-adjusted return projects

• Time is of the essence

• Regulatory environment must remain robust but timely

• Fiscal environment must account for massive capital investment

• A successful Canadian LNG industry will set us on the world energy stage

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Thank You