Governor’s Energy Summit Craig Wagstaff Executive Vice President & COO, Questar Gas.

Governor’s Energy SummitCraig WagstaffExecutive Vice President & COO, Questar Gas

NGVs have a long history

2

Worldwide NGV growth

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Source: NGV Global (2014); Current Natural Gas Vehicle Statistics http://www.iangv.org

3

http://www.iangv.org/

2013 Worldwide NGVs

4

There are more than 16 million natural gas vehicles on the road worldwide – but only about 140,000 are in the United States.

North America140,000 NGVs

South America4,800,000 NGVs

Europe1,700,000 NGVs

Africa186,000 NGVs

Asia and Middle East9,700,000 NGVs



World CNG Markets are Maturing

Dec. 2012 NGVs StationsIran 3,000,000 1,960

Pakistan 2,900,000 3,330

Argentina 2,140,000 1,902

Brazil 1,739,676 1,701

China 1,577,000 2,784

India 1,250,000 724

Italy 746,470 959

Ukraine 390,000 324

Colombia 380,000 690

Thailand 378,000 470

North America 140,000 1,167



Who Offers NGVs?

USA Natural Gas Refueling Infrastructure

2013 – 1,472 CNG/LNG stations

- 1,379 CNG stations

- 93 LNG stations

CNG Stations – 1,379 Total

- 710 Public access stations

- 669 Private access stations

LNG Stations – 93 Total

- 54 Public access stations

- 39 Private access stations

1,000

CNG

900

800

700

600

500

400

300

200

100

0

LNG

Public Access

Private Access1,400

1,300

1,200

1,100

Source: Alternative Fuels Data Center (2014); http://www.afdc.energy.gov

http://www.afdc.energy.gov/

2008

ANGA looks to

transportation market

Increase NGV Fueling

Capacity 50%

AutomakerMeetings

State of Utah opens it’s

CNG stations to public

Gasoline hits

$4/gallon Shale Gas

AGA/ANGA “collaborative”

2008

ANGA looks to


2009

2009 Guv Huntsman announces 1-15 NGV corridor


Capacity 50%

AutomakerMeetings

GM announces: Chevrolet

Express Van

State of Utah opens its CNG

stations to public

Gasoline hits

$4/gallonShale Gas


DOE Clean Cities Award $15 million

2008

ANGA looks to


2009 2010


Medium-Duty Truck

Private investment into new NGV-fueling stations


Capacity 50%

AutomakerMeetings


Express Van


stations to public

Gasoline hits

$4/gallonShale Gas



2008

ANGA looks to


2009 2010 2011


Medium-Duty Truck

Over-the-Road Truck Testing

Private investment into new NGV-fueling stations


Capacity 50%

AutomakerMeetings


Express Van

Dodge and Ford


stations to public

Gasoline hits

$4/gallonShale Gas



Low NGV pump price

Honda announces increased production

of Civic

Industry Experience 30 Questar Gas Stations

5 State/Municipal Stations

8 Private/Public Stations

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Questar Gas NGV Infrastructure

Questar Gas CNG demand

1/1/

2007

3/1/

2007

5/1/

2007

7/1/

2007

9/1/

2007

11/1

/200

7

1/1/

2008

3/1/

2008

5/1/

2008

7/1/

2008

9/1/

2008

11/1

/200

8

1/1/

2009

3/1/

2009

5/1/

2009

7/1/

2009

9/1/

2009

11/1

/200

9

1/1/

2010

3/1/

2010

5/1/

2010

7/1/

2010

9/1/

2010

11/1

/201

0

1/1/

2011

3/1/

2011

5/1/

2011

7/1/

2011

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

NG gal. sold Unleaded price CNG Rate

Gallons Cost/Gal.

Continuing Price Gap Between CNG/Diesel

14

Source: Annual Energy Outlook (2012); EIA www.EIA.gov

• EIA Forecasts• Forward looking price differential remains favorable between diesel and natural gas

*Forecast is in 2010 dollars

http://www.eia.gov/

Heavy Duty Natural Gas Engines Availability

8.9 Liter Available Cummins ISL G

OEM Cummins ISX12G 12.0 Liter Available limited volumes first half of 2013, full production

second half of 2013

Volvo 13.0 Liter Engine

November 2012

15 Liter, 2010 Cummins Engine Conversion Kit Available for Market

EPA Certified – DNG Power

June 2007

January 2014

March 2013

15.0 Liter 2010 Detroit Conversion Kit Available EPA

Certified – DNG Power

July 2013

15

Accelerated Market Adoption

Adoption rate in leading markets moving faster than the gasoline to diesel transformation

100%

75%

1950

25%

0%

Shar

e

1970 1990 2010 2030

50%

New sales of Class 8 diesel trucks, USA1,2

New sales of natural gas refuse trucks, USA2

Source: MacKay & Co., and Wards Auto Group, a division of Penton Media, Inc.; 2) Westport

Projected Number of NGVs

17

Source: American Clean Skies Foundation’s (2013); Driving On Natural Gas

~ Approx. 1.6 Billion Gallons/ Year*

*Assumes on average each heavy truck would fuel 65 gallons of natural gas 21 days per month and each medium truck would fuel 35 gallons of natural gas 21 days per month.

~ Approx. 930 Million Gallons/Year*

Projected Transportation Consumption of Natural Gas

18

Source: Annual Energy Outlook (2013); EIA www.EIA.gov

Assumptions: Fleet Passenger Vehicle

Residential Passenger Vehicle Fleet Light Truck

Residential Light Truck Medium Trucks Heavy Trucks

Assumed Volume 8 8 18 18 35 65

Assumed Days/Month 10 10 10 10 21 21

http://www.eia.gov/

Heavy Duty Results

19

Projected Demand of Natural Gas

20

*Source: American Clean Skies Foundation’s (2013); Driving On Natural Gas, Figure 15

Vehicle Fuel Component

CNG Not as Sensitive To Commodity Swings

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* Assumes that 1 GGE of CNG contains 125,000 Btu; ** Numbers reflect average Questar Fueling Station

$4/ MMBtu $5/ MMBtu $6/ MMBtu $7/ MMBtu $8/ MMBtu $-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Commodity Cost

Taxes

Compression, Land, G&A, Operating Expenses, Return

CN

G P

rice

per

GG

E

Gas Commodity Cost per GGE

QUESTIONS?

Governor’s Energy Summit Craig Wagstaff Executive Vice President & COO, Questar Gas.

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