[PPT] - Project presentation May 2015 Project overview Objective: Develop PowerPoint Presentation

SLIDE 1

Project presentation

May 2015

SLIDE 2

Project overview

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Objective: Develop a liquefied natural gas (LNG) export

terminal at the Port of Saguenay, Quebec

CAD$7.5 billion facility
11 mtpa capacity
1.56 bcf/d of feedgas (~44 mcm/d)
650-km new build pipeline
Differentiators:
Low plant CAPEX & OPEX
Powered by low-cost hydroelectricity
Access to low cost gas in Canada, and pipeline transportation

capacity

Predictable regulatory regime
Government support in Quebec and Ottawa
Sponsors: Freestone International LLC & Breyer Capital

LLC

mtpa: million tons per annum bcf/d: billion cubic feet per day mcm/d: million cubic meters per day

SLIDE 3

First LNG cargo in 2021

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2014 2015 2016 2017

Project development

Env. Permitting

Pre-FEED/FEED LNG Marketing Gas Supply Pipeline Power Lines Financing

2018 2019

Construction

Participatory process with communities, First Nations and stakeholders

2020 2021

FID

SLIDE 4

Growing natural gaz demand fueled by power generation needs in emerging countries

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SLIDE 5

LNG demand will increase significantly over the next decades

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50 100 150 200 250 300 350 400 450 2005 2010 2015 2020 2025 2030 MMt/y

Natural gas is an environmentally-

preferred source of energy

LNG demand doubling over the

next 20 years, largely driven by Asia-Pacific

LNG buyers seek:
Competitive pricing
Diversification of supply
Project risk profile
Project credibility & certainty
f outcome
Potentially, vertical project

integration

SLIDE 6

Resilience of LNG prices to oil prices drops, and promising long term price differential

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Long term Asia proxy in $14-$15/mmBtu range
Long term HH price around $5/mmBtu

SLIDE 7

Strong fondamental trends are supporting natural gaz demand

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Low cost LNG plants shutting down…

Egypt (12+ mtpa of lost LNG

production)

Indonesia (40% decr. in LNG export

since 99 / Arun LNG to be closed)

UAE

50 mtpa of LNG shortfall by 2025

(Credit Suisse, 2014)

…high-cost LNG supply coming online

Australia (CAPEX over $1,500/t)
Russia (CAPEX over $1,500/t)
British Columbia (CAPEX over $1,300/t)

SUSTAINED TREND TO GROWING NATURAL GAS NEEDS

Emerging countries’ needs Energy policies Existing importers growing needs

China (+13% in 2013)
Brazil (+18% in 2013)
Indonesia (+9% in 2013)
CO2 emission reduction in China

announced in Nov 2014

Nuclear power decommissioning in

Germany and shutdowns in Japan

Japan (89 million tons in 2014, +1.2%)
Brazil (+28% LNG import in 2014 due

to the drought)

Low cost LNG supply disappearing

SIGNIFICANT CHANGES IN LNG LANDSCAPE

SLIDE 8

Energie Saguenay can rely on robust, competitive canadian gas supply at AECO and Dawn

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1,444 Tcf

United States Canada

Robust Supply

Tremendous natural gas

resource in Canada

Highly integrated pipeline

network with available capacity

Énergie Saguenay AECO-C MARCELLUS & UTICA HENRY HUB (HH) Dawn

Competitive Pricing

AECO-C trades at

an average discount of 11% less than HH

Gas Reserves

SOURCE: EIA / NEB (2013)

SLIDE 9

Resulting from new NA gas market dynamics, it is planned to have excess in the entire network in 2020

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Significant available pipeline capacity from Western

Canada to eastern Ontario

Significant Canadian Supply from new sources (e.g.

Montney, Duvernay)

Marcellus continues to offer more supply to Northeast US

and Quebec/Ontario, pushing WCSB gas back to Alberta

Low cost Utica production expected to be 5 bcf/d by 2020
Pipeline infra to be extended in NE US (Constitution,

Iroquois) Historical TCPL Mainline Usage: 2003: 6.5 bcf/d 2014: 1.9 bcf/d 2020: 1.2 bcf/d (projected)

SLIDE 10

Energie Saguenay will require a new-build pipeline following existing right-of-way

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TCPL Mainline

New build: 36/42-inch pipeline from

Waddington to Saguenay (650 km)

Additional infrastructure

requirements in Eastern Triangle

Significant pipeline capacity from

Alberta to Ontario

Significant excess capacity at Dawn

in Ontario

EASTERN TRIANGLE Dawn Hub

SLIDE 11

Unique site location enables reduced, competitive CAPEX/OPEX

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Unique suitable site in Quebec for LNG export
Sheltered, year-round deepwater port
Excellent existing infrastructure
Available industrial land remote to population
Superior plant efficiency due to low ambient

temperatures

Access to low-cost hydropower
Available skilled labor
Saguenay region historically supportive of

industrial development

SLIDE 12

Energie Saguenay can rely on valuable existing infrastructure and local skilled labor

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Major Highway to Quebec City (4-lane dual carriage way) 735 kV substation (40 km from site) Bagotville Airport (18 km from site) Grande Anse Marine Terminal (at site) Intermodal Rail Yard (at site) Gas Pipeline right-of-way (10 km from site)

6 km 15 km

250,000+ people (surrounding region)
Significant skilled labor (from local mining & forestry

industry/projects)

Available housing & amenities (no camps)

SLIDE 13

Project fondamentals result in competitive economics to Asia and Europe

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Competitive LNG delivered price to Asia & Atlantic Basin Lower infrastructure and set-up costs

(roads, logistics, temp power generation, no camp, etc)

Lower permanent plant costs

(jetty, lower equipment count, etc.)

Low-cost, renewable hydro-power

(reduces CAPEX and OPEX)

Favorable low Saguenay ambient temperature

(leads to higher plant efficiency and lower $/mtpa costs)

Significantly lower OPEX

SLIDE 14

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Highly differentiated: low-cost, low-complexity Low cost hydropower surplus Low cost, low risk Process efficiency gain Low GHG Emissions Province used to LNG

2 import terminals permitted 1 peak-shaving liquefaction plant 10-15%

SLIDE 15

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Strategically positioned to supply global markets

Énergie Saguenay

COMPETITIVE TO ASIA, EUROPE, MIDDLE EAST & SOUTH AMERICA

Worldwide LNG Receiving Terminals

Source: BG

700 mtpa of global LNG

import capacity

Growth from 58 terminals in

2008 to 94 terminals in 2013

SLIDE 16

NEB Export Application: http://bit.ly/1KqRLpb

SLIDE 17

Contact us

Phone : 418 412-4993 email : contact@energiesaguenay.com Web site: www.energiesaguenay.com