The Adoption of FSRU For Cost-effective

LNG Import Solution

Aziz Kassim
Sr. Director – Business Development, Excelerate Energy
29-30 November 2017

Copyright Excelerate Energy L.P.

Disclaimer

Excelerate Energy makes no representations or warranties, express or implied, of any kind with respect to
information provided in this presentation, including without limitation with respect to the information’s
accuracy or completeness. Excelerate Energy will not be liable for any reliance or usage by a third party of
any information within this presentation. Any representations or warranties shall be made, if at all, only in
definitive written agreements that may be entered into by the Parties.

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 EXCELERATE ENERGY PROJECTS:
Who We Are:
Teesside GasPort®
• Pioneer and industry leader of UK — 2007

floating LNG terminal solutions Mina Al-Ahmadi GasPort®

Kuwait – 2009 - 2013
Northeast Gateway
Jebel Ali LNG Terminal
• Owner and operator of largest Deepwater Port®
USA – 2008 Hadera Gateway Dubai – 2015
fleet of FSRUs in the world, Israel – 2012

mooring systems, pipelines and Gulf Gateway®

related fixed infrastructure USA – 2005
Ruwais LNG
tailored to specific customer needs Abu Dhabi —
2016 Moheskhali Floating LNG –
2018

• Developed and operated Guanabara Bay

Brazil – 2014
Port Qasim
Pakistan – 2015
11 floating regas terminals globally Bridging Solution, 2012

Operational
GNL Escobar
• Over 28 years providing Argentina – 2011 Development &
regasification services without Construction
Advanced
a single day off-hire Bahía Blanca GasPort®
Argentina – 2008 Development
Decommissioned

• Over 1,285 STS transfers to date

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Early Adoption vs. Where we are Heading
Floating Regas has expanded to 22 terminals around the world with requirements evolving with the industry.
WHERE HAVE WE COME FROM… … AND WHERE ARE WE HEADED?

• Short-term charter contracts FULL INTEGRATION OF TERMINAL

EARLY ADOPTERS • Open / Closed Loop

• Dual contract approach
ARGENTINA

• Full integration of services as • Increasingly complex credit

• “Bridge-to-Permanent” model customers seek “one stop” solution and project finance structures

CONTRACT • Longer term charter with • Service under single Terminal Use • Increased participation in local
FLEXIBILITY flexible options Agreement (TUA) contract operations and stakeholder
• Increase in IPPs as customer with engagement
BRAZIL • High sendout peaking facility
growing interest in LNG-to-Power • Continued technical and
operational innovation

• Infrastructure and FSRU under

single O&M Success requires companies with established FSRU credentials
INTEGRATING
(design, construction and operation), but capable of dealing with the
INFRASTRUCTURE • EPCIC of infrastructure
challenges of a local business (EPC, taxes, local regulation, unions).
ABU DHABI • Local Permitting

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The Excelerate Offering

TERMINAL USE AGREEMENT

O&M

SUPPLY/
PORT SERVICES LOGISTICS / STS FSRU PERMITTING FULL EPC

TYPICAL FSRU
PROVIDER

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FSRU: Project Components
FSRU

Marine Infrastructure
POWER
Port Services
GENERATION
Permits

FSRU PROJECT
EXECUTION + LNG SUPPLY
+ GAS SALES
+
Local Tax & Law
GAS
Financing DISTRIBUTION
Stakeholder
Management

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Why an FSRU is Attractive for Morocco
LAND-BASED TERMINAL COST AS PER MINISTER ESTIMATES
• Based on current and expected gas INFRASTURCTURES INVESTMENTS
demand, an FSRU LNG import terminal
solution is more than enough to meet MARITIME JETTY .6 BILLION $US

the expected gas requirement LNG TERMINAL .8 BILLION $US

• FSRUs only require 8% of upfront cost PIPELINE TRANSPORTATION .6 BILLION $US

from USD 1.8 billion estimated by Energy STORAGE .4 BILLION $US

Ministry of Morocco (this is without the UPFRONT COST FOR LANDBASE VS FSRU
cost of pipeline) 2000
1800

• This cost is based on the cost of a power

1600
1400

USD (Millions)
1200

plant cost investment requirement of 1000

800

~USD 2.2 billion

600
400
200
0
Landbase FSRU
Maritime Jetty & topside equipment Regas Kit Storage tank

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FSRU Economics vs. Landbase Economics

FSRU vs. land-based

Up front capital for fixed $150

Comparison example:
infrastructure $995
($mm)
Energy requirement:
400mmscd of natural gas 23.7
LNG imported
(mmtpa) 16.3

Estimated oil price: $1,315

NPV fuel savings
$50 $815
($mm)

CO2 emissions 88
Project term length: reduction 60
10 years (mmt)
Construction assumptions: FSRU: 2.5 years (to include construction of new FSRU); $150mm fixed infrastructure cost (dock or buoy)
Land-based: 5 years

Project life cycle costs FSRU: $0.42/mmbtu Land: $1.01/mmbtu

($/mmbtu)

FSRUs are a cost-effective and time-efficient LNG import solution

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 The MLNG Terminal represented many firsts: CHITTAGONG

• 1st Fully integrated turnkey floating terminal solution

• 1st floating LNG project co-developed and financed by the IFC
• 1st floating LNG terminal to be fully permitted, constructed, POWER GENERATION
implemented and operated through a single contract and INDUSTRIAL FACILITIES
company – Excelerate Energy

STS TRANSFER OF LNG

FSRU

PORT SERVICES
SUBSEA PIPELINE

MOORING INFRASRUCTURE

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