1. LNG IMPLEMENTATION
PLANNING
A Plan to Serve the State of Hawai‘i
The Gas Company, LLC

2. TOPICS
• Hawaii’s Energy Landscape
• The Price of Paradise
• Why HAWAI‘IGAS
• Strength of Macquarie Partnership
• Our Approach
• LNG Centralized Storage
• Essential support for commitment of capital
2 Proprietary Material 11/27/2012

3. HAWAII’S ENERGY LANDSCAPE
• Hawai‘i has no sources of naturally occurring oil or gas.
• Abundant sunlight, wind, geothermal energy
- No sufficient infrastructure to capture, store and convert that energy to serve our needs.
Chevron Refinery
Tesoro Refinery
• The two oil refineries near Honolulu
produce nearly 90% of the fuel used in
Hawai‘i
• Sub-scale for continued profitable operation.
3 Proprietary Material 11/27/2012

4. TOPICS
• Hawaii’s Energy Landscape
• The Price of Paradise
• Why HAWAI‘IGAS
• Strength of Macquarie Partnership
• Our Approach
• LNG Centralized Storage
• Essential support for commitment of capital
4 Proprietary Material 11/27/2012

5. HAWAI‘I IS THREATENED BY OIL
DEPENDENCE
Hawai‘i Power Generation By Source (2010)
Geothermal Photovoltaic
2% Wind ~1%
2%
Coal
Hydroelectric
15%
~1%
Municipal Solid
Waste
3%
Biomass
~1%
Petroleum
76%
Source: HI Department of Business,
• Hawai‘i is the most oil-dependent state
- ~ 85% of our total primary energy, 76% of our electricity, and ~97% of our
transportation fuels are produced from oil

6. WHAT WE DO
• Making SNG Converting naphtha to methane @ $35.00/MCF
• LPG distribution @ $28/MCF

7. THE HAWAI‘I ENERGY MARKET
$25
$20 • LNG - technically and
$6.10 economically feasible
$/mmBTU delivered
$9.60
$15
• LNG for Hawai‘i underway
$10 • Economic benefits for all
Hawaii in power and
$5 industrial
• The simple price
$-­‐
LNG-­‐-­‐Low LNG-­‐-­‐High Low-­‐Sulfur advantage is 30-45%--
Cost Cost Fuel Oil even after liquefaction
115% Henry Hub
Shipping to Hawaii
Liquefaction Cost
Regasification and delivery costs
LSFO, Honolulu
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8. TOPICS
• Hawaii’s Energy Landscape
• The Price of Paradise
• Why HAWAI‘IGAS
• Strength of Macquarie Partnership
• Our Approach
• LNG Centralized Storage
• Essential support for commitment of capital
8 Proprietary Material 11/27/2012

9. WHY HAWAI`IGAS
Capabilities & Experience HAWAI`IGAS
Skilled workforce – gas engineering, operations, compliance and safety
State-wide presence and operating infrastructure
Our land-based approach supports state-wide LNG service
Solid financial position and ability to scale operations
Local operating experience
Started import process
Diversifies fuel supply for state
LPG or Containerized LNG distribution capability
Gas utility franchise serving all urban centers
9 For Intended Use Only 11/27/2012

10. DISTRIBUTION CHALLENGES
• Island economy presents distribution challenges similar to Northern Europe
• LNG model follows current LPG model – O`ahu terminal with barge distribution
Kaua`i – Gas Service Maui County – Gas Service
O`ahu- Gas Service Maui County – Electric Demand
Kaua`i – Electric Demand
O`ahu - Electric Demand
Barge
Hawai`i Island – Gas Service
Huki Kai Barge: 424,000 Gallons
Hawai`i Island – Electric
Pono Kai Barge: 657,000 Gallons
Demand
HAWAI`IGAS serves 68,658 (35,349 utility and 33,309 nonutility) residential and commercial customers
10 Proprietary Material 11/27/2012

11. TOPICS
• Hawaii’s Energy Landscape
• The Price of Paradise
• Why HAWAI‘IGAS
• Strength of Macquarie Partnership
• Our Approach
• LNG Centralized Storage
• Essential support for commitment of capital
11 Proprietary Material 11/27/2012

12. MACQUARIE GROUP
Macquarie Group Macquarie Infrastructure and Real Assets (MIRA)
$9.8bn+ $94b ~100 ~55
Assets Under Properties
Market Capitalization Portfolio
Management Businesses
$339bn+ Global leader in infrastructure and real
in total AUM assets management – operating in 23
countries*
14,200+
staff across 70+ offices
in 28+ countries
Portfolio Companies Provide:
Global provider of: GAS +22 million
• Banking households
• Financial advisory
• Investment & funds management
ELECTRICITY +2.7
services in major international
million households
financial centers
• *Data as of March 31, 2012
12 Proprietary Material 11/27/2012

13. TOPICS
• Hawaii’s Energy Landscape
• The Price of Paradise
• Why HAWAI‘IGAS
• Strength of Macquarie Partnership
• Our Approach
• LNG Centralized Storage
• Essential support for commitment of capital
13 Proprietary Material 11/27/2012

14. THE THREE-PHASE LNG PLAN
LNG MOBILE
Phase I EMERGENCY BACKUP
Portable LNG containers and vaporizers
EXPANDED ISO DELIVERIES
Phase II
& PERMANENT STORAGE
Stationary LNG storage and vaporizers
VESSEL DELIVERIES
Phase III
& EXPANDED STORAGE
Small-scale (Methane-Coral class)
LNG/LPG carriers to Hawaii;; cryotanks
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15. LNG IMPLEMENTATION DETAIL
Elements Phase I Phase II Phase III
Timing 2013-2015 2016-2018 2019-2025
Purpose SNG system backup Small scale thermal and power Large scale power
generation generation
Supply Logistics ISO container on ISO container on conventional LNG tanker or barge with
conventional ships ships ongoing ISO
Volume 6% of SNG 10-15% of SNG 75% of SNG load Neighbor
Specialized commercial and Islands + Oahu power gen
industrial applications of 200-500 MW
Infrastructure and Up to 20 ISOs Phase I plus up to 120 ISOs and LNG terminal facility and
Equipment 1-2 vaporizers additional vaporizers distribution infrastructure
Storage Mobile ISOs One or more locations with 15-25 million gallons of
70,000 gallons storage statewide
FERC Yes Yes Yes
11/27/2012
15 Proprietary Material

16. TOPICS
• Hawaii’s Energy Landscape
• The Price of Paradise
• Why HAWAI‘IGAS
• Strength of Macquarie Partnership
• Our Approach
• LNG Centralized Storage
• Essential support for commitment of capital
16 Proprietary Material 11/27/2012

17. ENTIRE STATE TO SHARE BENEFITS
• Develop up to 20 million gallons of LNG storage
capacity on Oahu
- Centered on Oahu – population 850,000;; 1600 MW generating
capacity
- Storage location within close proximity to Pearl Harbor and critical Dept.
of Defense installations
Energy Security
National Security Economic Security
Environmental Security
17 Proprietary Material 11/27/2012

18. TOPICS
• Hawaii’s Energy Landscape
• The Price of Paradise
• Why HAWAI‘IGAS
• Strength of Macquarie Partnership
• Our Approach
• LNG Centralized Storage
• Essential support for commitment of capital
18 Proprietary Material 11/27/2012

19. INVESTMENT IN CCGT NECESSARY
Lowers costs for
consumers
Benefits power
producers,
vehicles and
marine
transportation
Clean low
carbon
alternative to
petroleum

20. BRINGING BUSINESS AND
GOVERNMENT TOGETHER
Unified approach to serving the islands
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