Winter Past Winter Future Role of LNG in

Winter Past, Winter Future Role of LNG in New England Prepared for: New Hampshire Energy Summit Concord, NH October 5, 2015 Joe Dalton Director, Government Affairs GDF SUEZ Gas North America, Inc.

GDF SUEZ - Overview Ø Ø GDF SUEZ is a Global LNG portfolio player Ø 3 rd largest importer of LNG in the world Ø Involved in Liquefaction in the USA Ø Global portfolio of LNG supply Ø Operate 17 LNG carriers including 2 SRV’s No. 1 Independent Power Producer in the world Ø 13, 000 MW USA Ø 115. 3 GW Worldwide GDF SUEZ ENERGY INTERNATIONAL - OVERVIEW – SEPTEMBER 2013 22

Think Energy began serving MA residential customers in early 2015. 3

The Everett LNG Import Terminal Ø The Everett LNG Import Terminal is the longest-operating in the U. S. , and the only continuously operating one. Ø Opened in 1971 as a peak shaving facility to help meet New England’s relatively small natural gas demand. Ø Today it is an essential part of the region’s energy supply mix. Ø Trucking capacity: Ø 100 million cubic feet/day Ø Vaporization capacity: Ø 715 million cubic feet/day – sustainable Ø 435 million cubic feet/day – Non-Mystic (Algonquin, Tennessee, LDCs) Ø 1 billion cubic feet/day – maximum installed 4

Everett Marine Terminal: capability to serve key systems simultaneously Tennessee Gas Pipeline 150 MMSCF/D @ 750 PSIG Algonquin Gas Pipeline 150 MMSCF/D @ 433 PSIG National Grid Greater Boston distribution 135 MMSCF/D @ 220 PSIG Liquid delivery via truck/trailer 1 million gals/day 100 MMSCF/D Boil-off direct connection Local distribution 50 MMSCF/D @ 22 PSIG Mystic Station (1, 600 MW) direct connect 280 MMSCF/D @ 750 PSIG 5

Importance of LNG in Greater Boston & New England The Everett Terminal directly connects into: Algonquin Pipeline Tennessee Gas Pipeline National Grid local distribution system Mystic Power Station The Everett Terminal supplies LNG via truck to nearly all of the 46 customer-owned LNG storage tanks in region. (LNG is how natural gas is stored in New England. ) Today, LNG from Everett and these facilities can meet as much 40% of the natural gas demand on peak days. Total LNG storage in New England is 20 Bcf.

Winter 14/15 Source: ISO-NE presentation, March 4, 2015, **excludes approx. 5 Bcf/d to Mystic & LDCs 7

Winter 14/15 - continued Total Distrigas sendout up from 9. 3 Bcf/d in Jan/Feb 2014 to 15. 6 Bcf/d in Jan/Feb 2015 67% increase According to ISO-NE COO Reports Dec 14 – Feb 15 costs compared to Dec 13 – Feb 14 Down over $2 BILLION Source: SNL, “In New England power market, small changes lead to big price differences, ” by Mark Hand, March 2, 2015 8

Recent Report on Winter Alternatives GDF SUEZ ENERGY INTERNATIONAL - OVERVIEW – SEPTEMBER 2013 9

Energyzt Advisors Report Findings 1. Existing infrastructure is more than adequate. 2. Winter prices reflected a transient peaking problem. 3. The market is responding with dual-fuel capability and LNG contracts. 4. New Pipeline Capacity already is being built. 5. Public policy does not support new pipeline infrastructure. 6. A new pipeline subsidized by electric ratepayers violates the beneficiary pays principle. n “The lowest cost and lowest risk way to meet power generation demand reduce natural gas prices in the New England market in the near to medium term is to contract with existing infrastructure, including LNG imports and dual fuel capability, that can provide peaking response at little to no capital cost and without ratepayer commitment. With existing infrastructure and projected needs over the next ten years, there is plenty of time to monitor how existing policy initiatives, infrastructure availability, market response and therefore new pipeline infrastructure needs evolve over the long-term. The solution is contracting, not construction. ” GDF SUEZ ENERGY INTERNATIONAL - OVERVIEW – SEPTEMBER 2013 10