Introduction to AltaGas and the Proposed Ridley Island Propane Export Terminal Prince George City Council July 11, 2016

AltaGas

Presentation

1

1. AltaGas overview

2. Investments in B.C.

3. Community engagement

4. Propane in every day life

5. Why export propane

6. Proposed Propane Export Terminal overview

AltaGas

AltaGas overview

2

Vision

To be a leading

North American

energy

infrastructure

company

Strategy

To realize

opportunities

created by the

renaissance of

natural gas and by

the increasing

demand for clean

energy

Energy infrastructure

Develop, construct,

operate and own

AltaGas

Well diversified energy infrastructure

3

~2 Bcf/d of natural gas

transacted

Processing and moving

natural gas and natural gas

liquids to key markets,

including Asia

1,6882 MW of power

generation in four fuel types

Generating clean energy with

natural gas and renewable

sources

5 Utilities serving over

560,000 customers

Delivering clean and

affordable natural gas to

homes and businesses

1,700 employees drive best

in class operations

Above all else, safety and

environmental protection are

AltaGas’ most important core

values

Power

utllltles

IE! llllltlz

AltaGas

B

Investments in B.C.

4 AltaGas

198 Mmcf/d Townsend Facility Project

66MW Mclymont Creek Hydroelectric Facility

16MW Volcano Creek Hydroelectric Facility

195MW Forrest Kerr Hydroelectric Facility

1.2 Mmtpa Ridley Island Propane Export Terminal Project

~ Gas Processing

~ Gas Processing Under Construction

~ Regional LNG Facility Under Construction

• LPG Proposed/ Under Development

Pacillc Northern Gas Pipeline

~ Hydro Power Generation

I! Wind Power Generation

• Vancouver

82 Mmcf/d Blair Creek Gas Plant

750 Mmcf/d Younger Extraction Plant

20,000 US gallons/d Dawson Creek Regional LNG Project

102MW Bear Mountain Wind Park

AltaGas in B.C.

5

Forrest Kerr Hydroelectric Facility

Volcano Creek Hydroelectric Facility

McLymont Creek Hydroelectric Facility

Younger Extraction Plant

Bear Mountain Wind Park

Townsend Gas Processing Facility Project

IDL Projects Inc., from Prince George

was selected as one of the contractors

to work on the Townsend Project.

AltaGas

Ferndale Terminal – Ferndale, Washington

6

• AltaGas has been safely operating

the Ferndale Terminal since 2014

• The only existing and operating

LPG export terminal on the west

coast of North America

• The Terminal has operated safely

for more than 40 years handling

propane and butane that arrives by

truck, rail and pipeline

• The Terminal can handle 24

railcars per day

AltaGas

Community engagement

7

AltaGas is committed to building long-term,

mutually beneficial working relationships with

communities and First Nations

We are committed to ensuring a safe

workplace, protecting employees, the public

and the environment

Our mandate is to work collaboratively with

local communities and First Nations to ensure

sustainable development plans are put in

place

Our Purpose: Information gathering and

sharing

- Learn who the interested and impacted

stakeholders are

- Solicit feedback

- Establish a presence in the community so

stakeholders know who to contact

- Inform the community on how to

participate in the regulatory process

AltaGas

Propane in every day life

1- World LPG Association Annual Report 2015

2- World LPG Association

8

Liquefied petroleum gas or LPG is a term

used to describe two fuels: propane and

butane

Propane is a clean-burning, portable, multi-

purpose fuel that is non-toxic, economical,

and safe

Several billion people around the world use

propane for cooking and heating, generating

power, cleaning and drying clothes, and

powering equipment like forklifts

Almost half of global propane consumption is

for domestic use, the remainder is consumed

by the chemical industry, refineries, transport,

industry and agriculture1

LPG emits about 20% less CO2 than heating

oil and 50% less than coal2

AltaGas

Why export propane

1- Canadian Propane Association - 11 billion litres

2- LPG and the Global Energy Transition, A study on behalf of the World LPG Association

3- Japan LP Gas Association 9

Canada has an abundant supply of propane

to offer global markets that rely on energy

imports to meet energy demands

- 5.5 million tonnes produced annually in

Canada1

- Traditionally most of Canada’s propane

exports have gone to the U.S., however

the U.S. has become self-sufficient

In 2013, global consumption of LPG

amounted to 267 million tonnes2

Approximately 50% of all households in

Japan use LPG 3

Environmental concerns such as emissions

of greenhouse gases are driving increased

demand

World final energy consumption of LPG

by country/region, 2003-20131

Source: WLPGA/Argus Media (2014)

"' 300 a, ,= ,=

.8 ,= .Q 250

~

200

150

100

50

0

AltaGas

2003 2005

Rest of wor d

• Europe/Eurasia

Ind ia

• J.a an

• Sa1udi Ar.abia

• China

• us

2007 2009 2011 2013

Proposed Propane Export Terminal

10

AltaGas is proposing to build a new Propane Export Terminal on a site sub-leased from Ridley Terminals Inc. (RTI)

The Terminal will receive liquid propane from B.C. and Alberta via CN’s existing rail line

Propane will be transferred to intermediate pressurized storage bullets

Propane will be cooled to -42°C, stored and shipped at atmospheric pressure

Cooled propane will be transferred to Very Large Gas Carriers (VLGC) using the existing RTI coal jetty

Propane will be transported to Asia and other markets

•

Rail transport Propane storage

AltaGas

Boil-off gas recovery and reliquifaction unit

ct~) • ~•

Refrigeration unit

Refrigerated storage tank

Very Large Gas Carrier travelling to Asia

Pipeline to loading area

Mooring structure & loading arm

Why locate at Ridley Island

11

The RTI site is strategically

located:

Short shipping distances to

target markets in Asia

History of industrial

development/use and liquid

bulk loading terminals are

supported in PRPA’s Land

Use Plan

Existing CN rail lines and

coal export jetty and berthing

facilities

All new construction will take

place on previously cleared

land and/or will build upon

existing infrastructure

AltaGas

Project site location at Ridley Island

12

Proposed Ridley Island

Propane Export Terminal

Project Site

AltaGas

Proposed Propane Export Terminal

13

Altauas

AltaGas

Schedule

14

AltaGas is advancing towards a final investment decision in late 2016, and is targeting a

commercial operation date to begin propane exports in 2018.

The Project would be the first propane export terminal to be constructed and operated

off the west coast of Canada.

Project Schedule

Consultation

Environmental and Regulatory Process

Design and Detailed Engineering

Procurement

Construction

Targetd Startup

* Date ranges are approximate and subject to change.

AltaGas

2016 2017 2018

Project benefits

15

Provide Western Canadian producers with new market access to Asia, a premium market for propane

Contribute to national trade and enrich Canadian-international partnerships

Diversify product at Ridley Terminal

Support long-term economic stability in the region and provide local employment opportunities

Provide skills training and employment opportunities to local First Nations

Lead to approximately:

− 200 – 250 construction jobs

− 40 – 50 permanent job opportunities once the facility is operational

Ferndale Terminal operated by AltaGas - Ferndale, Washington

Ferndale Terminal operated by AltaGas - Ferndale, Washington

AltaGas

Environmental review and permitting

16

Project will undergo an environmental

review

Engagement planned with First Nations,

the public and other stakeholders

The following is a preliminary list of

major pre-construction authorizations

that may apply to the Project:

- Section 67 Determination (under

the Canadian Environmental

Assessment Act, 2012)

- Navigation Protection Act

approval

- Fisheries Act authorization, (if

necessary)

- Explosives Act Permit, (if

necessary)

Protection of the environment

is a core value at AltaGas

~. - .... __ .,.. - . ' ........ __ ...

I

AltaGas

Section 67 process: key steps

17

Step 1: AltaGas prepares a Project

Description - completed

Step 2: Project Description review by

Federal Agencies, including a 30-day First

Nation and public engagement period -

completed

Step 3: AltaGas submits an Environmental

Assessment

Step 4: Environmental Assessment review

by Federal Agencies, including a 30-day

First Nation and public engagement period

Step 5: Project Decision by Federal

Authorities

Step 6: Project approval conditions issued

by Federal Agencies

AltaGas

Questions?

18 AltaGas