Alaska LNG Summit 20121

c

HAWAI’I GAS: THE THREE-PHASE LNG PLAN

Phase I

Phase III

Phase II

LNG MOBILE EMERGENCY BACKUP

EXPANDED ISO DELIVERIES & PERMANENT STORAGE

VESSEL DELIVERIES & EXPANDED STORAGE

Portable LNG containers and vaporizers

Stationary LNG storage and vaporizers

Small-scale (Methane-Coral class) LNG/LPG carriers to Hawaii;

cryotanksSeptember 14,

2012

Alaska LNG Summit 20122

PHASE I: LNG MOBILE EMERGENCY BACKUP

Mobile LNG Container and Vaporizer September 14,

2012

Alaska LNG Summit 20123

PHASE I: OPERATIONS SCHEMATIC

• 40’ ISO containers shipped from West Coast to Hawaii via common carrier.

• ISO containers trucked to different sites where LNG is vaporized and utilized.

MAINLAND LNG

SOURCE

COMMON CARRIER Trans-Pacific

HAWAII PORT

MOBILE VAPORIZER

ISO filled with LNG

Trucking to facility

NATURAL GAS TO

PIPELINE OR CUSTOMER

LNG re-gasification

Empty ISO shipped back to Mainland for refill

September 14, 2012

Alaska LNG Summit 20124

PHASE II: Expanded ISO Deliveries and Permanent Tank Storage

September 14, 2012

Alaska LNG Summit 20125

PHASE II: OPERATIONS SCHEMATIC

• LNG-filled ISO containers are transported from West Coast to Hawaii.• ISO containers are then trucked to various TGC storage and regasification facilities, or transferred to

customer sites.

MAINLAND LNG

SOURCE

COMMON CARRIER Trans-Pacific

HAWAII PORT

LNG STORAGE

TANKSISO filled with

LNGTrucking to storage

facility

NATURAL GAS TO

PIPELINE OR CUSTOMER

LNG re-gasification

Empty ISO shipped back to Mainland for refill

LNG VAPORIZER

AT END USER

Trucking ISO to end user

LNG VAPORIZER

NATURAL GAS TO

PIPELINE OR CUSTOMER

September 14, 2012

Alaska LNG Summit 20126

PHASE III:Vessel Deliveries and Expanded LNG Storage

September 14, 2012

Alaska LNG Summit 20127

PHASE III: OPERATIONS SCHEMATIC

LNG TANKER

MAINLAND LIQUEFACTIO

N PLANT

HAWAII TERMINALS

LARGE CRYOGENIC STORAGE

REGASIFICATION

CCGTPOWER PLANT

TGC DISTRIBUTION NETWORK

• Small LNG tankers load with LNG at major liquefaction plants and deliver LNG to cryogenic storage at Hawaii terminals.

• LNG is regasified as needed and delivered to the existing network and to a state-of-the-art power plant.• System may continue to operate in parallel with ISO container deliveries.

September 14, 2012

Alaska LNG Summit 20128

PROJECT MILESTONES

PHASE I PHASE II PHASE III

Time

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 - 2025

Phase I

•LNG Supply/Transport 12

• ISO Acquisition 6 -12

•Vaporizer Acquisition 6

• FERC Phase I Application

3 - 6

Phase II

•Storage Siting/Permitting

12

•Engineering/Design 12

•FERC Phase II Application

12

•Final Engineering 6 - 9

•Construction 9 - 12

Phase III

•LNG Supply Contract 36-42

•Vessel Charter Negotiations

12

•Vessel Construction 24-36

•Site Selection/Engineering

12-18

•FERC/NEPA/Permitting 20-24

•Final Engineering 6-9

•Facilities Construction 24-30

CRITICAL PATH:Phase III FERC Application requires sight-specific engineering to begin in early 2013

CRITICAL PATH: Site layout and engineering for Phase II storage must begin now.

ISO Acquisition continues until fleet acquired.

September 14, 2012

Alaska LNG Summit 20129

RENEWABLES AND GAS CAN BE MAJOR ENERGY SOURCES IN HAWAI’I--SOON

By 2025, gas and renewables could make up 38% of Hawaii’s total energy supply

Gas and renewables are complementary. Wind and solar power need gas to balance their fluctuations

The gas infrastructure can be used for renewable gas as it becomes available

Hawai’i Gas has already pioneered renewable gas with its pilot plant on Oahu0%

5%

10%

15%

20%

25%

30%

35%

40%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Shares of Gas & Renewables in Hawaii's Energy

Renewables

Gas

September 14, 2012

Alaska LNG Summit 201210

TOGETHER, RENEWABLES AND GAS CAN TRANSFORM HAWAI’I’S ENERGY MIX

Oil, 86%

Coal, 6%

Gas, 0%

Renewables, 7%

State Energy Mix, 2010

Oil, 55%

Coal, 7%

Gas, 14%

Renewables, 23%

State Energy Mix, 2025

September 14, 2012

Alaska LNG Summit 201211

WORKING TOGETHER FOR HAWAII’S RENEWABLE ENERGY FUTURE

The LNG strategy works when industry, government and the community unite, bringing experience, resources and

dedication to moving away from Hawaii’s dependence on a single source of energy:

Oil.September 14,

2012