Pilot LNG LLCCREATING NEW

MARKETS FOR CLEAN ENERGY

Introduction

Pilot LNG is an energy solutions company, focused on the delivery of

Liquefied Natural Gas (LNG) to both new and existing markets by

developing and operating LNG import and LNG fuel/bunkering terminals

and related infrastructure. The company aims to establish LNG terminal

and logistics opportunities worldwide to meet growing natural gas

demand.

Pilot LNG would like to work with the Port of Galveston on the

development of an LNG bunker terminal that will be located on Pelican

Island. The LNG bunker fuel will serve the greater Galveston / Houston

port complex by supplying clean burning LNG to the rapidly expanding

fleet of LNG-fueled vessels.

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Why LNG as a Marine Fuel

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New international regulations effective January 01, 2020 require the shipping industry to burn fuels with <0.5% Sulphur (SOx)

LNG has much lower emissions than conventional marine fuels

LNG emits zero SOx

LNG has virtually no particulate matter

LNG emits 90% less NOx vs. conventional HFO

LNG as a marine fuel is less costly when compared to low Sulphur fuel oil

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LNG Marine Fuel Market Depth

Continues to Grow…

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LNG Fueled Fleet by Vessel Type

• Key opportunity for Galveston

in Cruise Industry

• Additional growth opportunity

within Houston Bay at Port’s of

Texas City & Houston: Tugs,

Ferries, Container Ships,

Offshore Supply Vessels, etc.

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LNG Marine Fuels…

Cruise Industry Early Adopters

Carnival have selected LNG as their primary fuel

for next generation large ships – 1st in the industry

to do this

Carnival Corp. has ordered 10 LNG powered

cruise ships

Royal Caribbean have equipped eight of their

ships with gas-turbine engines which burn cleaner

fuels and emit less air pollution

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Source: Carnival Corp. CWC World LNG Summit Dec 2019 & Royal Caribbean

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Additional Benefits

Galveston will become the first deep water port on the U.S. Gulf

coast to provide LNG bunker services

LNG bunker supply may entice the cruise lines to homeport their

most state-of-the-art cruise ships in Galveston

Reduced emissions will help The Port of Galveston meet its

Green Marine initiatives

LNG bunker fuel in Galveston competes favorably with potential

LNG bunker projects in the Caribbean or Central America

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Port of Galveston

LNG Bunker PortPROJECT OVERVIEW

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LNG Bunker Port

PLNG to develop LNG bunker

facility on Pelican Island

Perform initial due diligence and

fatal flaw analysis

Establish conceptual

engineering & design

Define the permitting and

regulatory process

Utilizing proven technology for

LNG liquefaction and transfer

Conduct stakeholder outreach

and seek community feedback

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Source: Port of Galveston

LNG Bunkering Concept

Port property has limited development opportunities for traditional Port functions – containers, cruise, etc.

As it is a remote location, fits well with LNG development

Traditional LNG facilities i.e. Jax LNG bunkering in Florida are land based, stick-built facilities

High cost per ton making competitiveness challenging

Pilot would utilize proven Floating LNG (FLNG) technology

Similar to “Tango FLNG” unit (see picture lower left) and built by Wison, currently operating in Bahia Blanca, Argentina

FLNG unit can produce 0.5 Mtpa or ~70,000 Mcf/day equivalent

Shipyard based construction lowers costs significantly providing a platform to provide major component of the “terminal” at competitive economics

LNG can be delivered to end-users at significant discount to low sulphur diesel

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Source: Port of Galveston and Wison Offshore & Marine

LNG Bunkering Technology

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Project: Tango FLNG

System: Floating gas liquefaction and storage unit

Status: Successful gas trial in Sep 2016, at Wison’sNantong Shipyard, delivered in Jan 2017. Currently operating in Argentina (Bahia Blanca)

for YPF

Description Length 144m (474 ft.) * Breath 32m (105 ft.) *

Depth 20m (66 ft.)

Design Draft: 5.4m (18 ft.)

Throughput Liquefaction: 72 Mmscf/d (≈ 0.5mtpa)

Storage: 16,100m3 (Type-C tank)

Hull: permanently-moored, non-propelled

Design Barge: Wison

Liquefaction technology: Single Mixed

Refrigerant (SMR)

Storage and Cargo Handling: TGE

Contract Type: Turnkey EPCICSource: Wison Offshore & Marine

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LNG Bunkering Project Structure

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Gas Supply:

• Intrastate pipelines in the

Katy/Houston Ship Channel

• Opportunity to purchase a

delivered to terminal gas

supply including commodity

& pipeline transport

• 3rd party can take supply

risk and toll through facility,

or…

• Project can buy gas supply

and then bundle terminal

fee to provide LNG fuel

price to end users

LNG Barge & Distribution:

• Potential but no current

commitment to consider

distribution/logistics – likely 3rd

parties to take on this role

• LNG barge logistics to

provide “delivered Ex-Ship”

to end-users such as the

cruise industry in Port of

Galveston

FLNG Unit:

• FLNG unit built and floated

into site as the marine

component of the terminal

• FLNG unit will be owned

and operated by Pilot LNG

• Pilot will either provide LNG

bunker fuel to customers ex-

wharf or delivered to LNG

fueled vessels by ship-to-

ship transfer

Terminal/Fixed Infrastructure:

• The site to be leased from

Port of Galveston under

long-term lease agreement

• Land-based component of

the facility to have a small

footprint minimizing any

potential environmental

impacts

• Fixed infrastructure on

Pelican Island to be leased

owned and operated by

Pilot LNG

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Mar Q1 2021 FID

LNG Bunker Port: Development Schedule

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Phase 2• Identify Stakeholders and Adjacent Landowners• Prepare and Issue Agency Pre-Application Consultation Letters• Hold Pre-Application meetings with regulatory agencies

Phase 3• Begin WSA Process and draft Preliminary WSA• Perform environmental and cultural surveys if required (based on agency consultation)• Prepare EA to support Permit Applications and Regulatory Compliance

Phase 4• Draft and Submit Permit Applications and Consultations Requests• File Public Notices• Submit Preliminary WSA and hold WSA Workshops• Submit Follow On WSA

Phase 5• Answer Agency Data Requests• Respond to Permit Public Commits• Receive and Review Draft Permit Conditions

Phase 6• Receive Letter Of Recommendation• Receive Permits (Construction Permits and Clearance Letters)• Perform Mitigation (if required, can be done at FID or during construction)• Request Notice to Proceed to Construction

Phase 1• Execute site agreement with Port of Galveston• Prepare Permitting Roadmap (Part of the Critical Issues Analysis)

Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

◆ Jan Q1 2020

◆ Early Q2 2020

◆ June Q2 2020

◆ Mar Q1 2020

◆ Nov Q4 2020

◆

Phase #1: Agreement with Port & Reg road map.

Phase #2: Completed conceptual Eng., desk top Env. &

Reg. Outreach

Will have engaged regulatory agencies in discussions

related to concept and opportunity.

Phase #3: Will have engaged marine industry,

logistics & end-users in discussions related to

concept and commercial opportunity.

Commercial: Post Phase #2 – engage with

marine industry

Commercial: Phase 4 – Term Sheets and/or

binding agreements

Commercial: Phase 5 & 6 – Binding SPAs or TUAs

under negotiation (with CP’s)

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Key Strategic Partners

Wison

FLNG Basis of Design

FLNG FEED (Front End Engineering & Design)

FLNG EPCIC (Engineering, Procurement, Construction, Installation, & Commissioning)

EXP Environmental Services Inc.

Regulatory and Permitting

CH-IV / Clough

Land-based fixed infrastructure including marine jetty & topsides Basis of Design, FEED, and EPCIC

Energy Transfer Partners / Houston Pipeline Co.

Gas pipeline infrastructure

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Houston/Galveston LNG Marine Fuel

Market

Internationally, the cruise industry is one of the early adopters in the LNG marine fuel space

Cruise Industry in the Port of Galveston

Currently ~300 port calls per year and growing

Assume 50% of the cruise vessels will be fueled by LNG by 2023 = 50% of the FLNG capacity

Significant growth in LNG fueled vessels is forecast and shipowners adjust to meet strict emissions regulations

Container Vessels (lower right) – TOTE currently have two running from Jacksonville, FL to Puerto Rico

Oil Tankers – Shell has ordered 10 LNG fueled Aframaxtankers

Car Carriers – Volkswagen has ordered LNG fueled car carriers

Cargo Vessels, tugs, ferries, etc.

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What is LNG?LNG SAFETY, FACTS &

MISCONCEPTIONS

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What Is LNG?

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• LNG is an odorless, non-toxic and non-corrosive liquid

• LNG is not stored under high-pressure, is not flammable and is not explosive

• LNG has been safely and securely shipped around the world for more than 50 years

• LNG does not pose a contamination risk

At which point it becomes a liquid, reducing its volume by a factor of more than 600.

Natural gas is converted to LNG by super-cooling it to -260° F

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Common Myths & Misconceptions

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LNG is explosive

LNG facilities smell

LNG projects are rubberstamped by the government & agencies

The proposed LNG terminal is too close to communities to be safe

LNG vessels will shut down the channel for days at a time

LNG facilities will destroy the local environment and poison the air

LNG facilities will ruin the tourism industry

LNG as a liquid is non-flammable and non-explosive

Unlike oil refineries and complex chemical facilities, LNG terminals do not put out noxious or malodorous emissions

US LNG projects undergo an extremely rigorous review process ensuring safety and environmental responsibility

In the unlikely event of an incident, any potential significant impacts would be contained onsite, as required by regulation

Channel operations would continue mostly unaltered with safety and security procedures controlled by the Coast Guard

The agency environmental review process ensures that projects meet or exceed all environmental requirements

LNG projects must meet or exceed all air quality requirements, which are in place to protect the public health and environment

In ports around the world, LNG terminals coexist with thriving tourism and local industries In fact LNG is becoming the fuel of choice for the Cruise Industry

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Who is Pilot

LNG?PILOT TEAM & EXPERIENCE

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Management Team: Experienced &

Proven Track Record

Jonathan Cook:

Co-founder of Excelerate Energy in

2003 and served as the company’s

Chief Operating Officer. Jon managed

the development of Excelerate

Energy’s portfolio of successful floating

storage and regasification unit (FSRU)

projects, expanding the company’s

fleet to nine (9) FSRUs and growing

EBITDA to roughly $300 million. He was

responsible for building the company

from start-up with four employees to a

fully operational entity with almost 100

employees. Responsibilities included

FSRU project development including

complex contract negotiations, fleet

operations, project level insurance

coverage, regulatory compliance and

corporate operations.

Nicolas Tirogalas:

Nicolas has significant experience

in corporate finance and mergers

and acquisitions structuring as well

as strategic planning including over

20 years’ experience in the energy

and commodities sectors and has

managed the start-up and

implementation of an LNG/LPG

shipping company into operation

with five operational LNG carriers

and four LPG carriers under

construction. Nicolas was

responsible for the day to day

operations and financial

performance of the company as

well as the financing of the fleet.

Shaun Davison:Shaun has a proven track record

originating successful LNG projects

across the value chain including

several FSRU projects while at

Excelerate Energy and NextDecade.

FSRU projects include Argentina, Israel,

Pakistan, Ireland, UK, Bangladesh. LNG

export project development includes

Brownville, TX, Texas City, TX, Port

Lavaca, TX. Shaun has 25 years’

experience in the energy industry, with

expertise in the natural gas value

chain: pipelines, underground storage,

US and global markets, LNG terminals

and LNG shipping. Proven abilities in

strategic planning, project

management and business

development.

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Previous Experience: Ground Breaking

Energy Companies

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Skills Across the Gas/LNG Value Chain, including FSRUs/Regas

NextDecade Corporation

• Members of the start up & origination team

• Raised ~$85MM in Private Equity funding in May 2015

• Took NextDecade public in July 2017 for ~$1 Billion valuation

• Instrumental members in the Rio Grande LNG and Inisfree LNG projects

Floating Regasification Vessels

• Eight (9) new build Floating Regasification

& Storage (FSRU) vessels built at DSME

Floating Regas Terminals

1. Gulf Gateway, USA

2. Northeast Gateway, USA

3. Aguirre GasPort, Puerto Rico

4. Teesside GasPort, UK

5. Mina al Ahmadi, Kuwait

6. Hadera Gateway, Israel

7. Port Qasim GasPort, Pakistan

8. Moheshkhali LNG, Bangladesh

9. Jebel Ali, Dubai

10.Inisfree LNG, Ireland*

Land Based Regasification Terminals

• Cove Point LNG, USA

• Elba Island LNG, USA

Liquefaction Terminals

• Rio Grande LNG, TX, USA*

*Under Development

Previous Employers LNG Terminals Recent Experience: NextDecade, Rio Grande LNG, Inisfree LNG

Inisfree LNG

• Origination & Early Development of Inisfree LNG in Cork Harbor with Port of Cork and Gas Networks Ireland

• 3 Mtpa LNG import project

• Commercial HOA executed with Asian LNG portfolio company

Rio Grande LNG

• Development of $20 Billion South Texas LNG liquefaction project, Rio Grande LNG and supporting 140 mile Rio Bravo pipeline

• Led the US Regulatory & Permitting process with final EIS in May 2019

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Management Team:

Experienced & Proven Track Record

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Bahia Blanca (Argentina), first FSRU in South America Teesside Gasport (UK), first FSRU terminal in Europe

Hadera Gateway (Offshore Israel) Engro Elengy Gasport (Pakistan)GNL Escobar - Argentina

Northeast Gateway - USA

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Memorandum of Understanding

Pilot LNG and the Port of Galveston - Memorandum of Understanding

Defines the framework on how the parties will proceed with initial project due diligence and for the negotiation of a long-term lease agreement

Due Diligence includes:

Project feasibility and fatal flaw analysis

Definition of regulatory and permitting process

Develop conceptual engineering and basis of design

Stakeholder outreach

Commercial validation

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Contact: Shaun Davison – Chief Development OfficerPilot LNG, LLC

Email: shaun.Davison@pilotlng.com Call: +1.832.415.6659

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