STEELHEAD LNG LNG – THE RIGHT REACTION TO ASIAN DEMAND FOR CLEAN ENERGY.

STEELHEAD LNG

LNG – THE RIGHT REACTION TO ASIAN DEMAND FOR CLEAN ENERGY

LNG

Proven, safe – 50+ year-old industry• Plant 1,300 kilometers north of BC operating safely for 42

years• 1969: First exports of LNG from Alaska to Japan now

rejuvenated• 80,000 voyages; 240 M kms. No serious incident

LNG is:

Colourless

Odourless

Non Toxic

Non Explosive

Non Flammable

No residue if spill

Alaska’s Kenai

LNG plant

Steelhead LNG/ 2

Air Quality

GHGs

Professor Muller, University of California Berkeley.

Demand

2010 2025

…and will nearly triple to 67 bcf/d in the next 15 years.

Americas, 10%

Europe, 23%

Japan, 34%

China, 7%

Other Asia, 26%

Americas, 5%

Europe, 22%

Japan, 18%

China, 42%

Other Asia, 13%

Source: BMO Capital Markets, PIRA.

The LNG Market has grown from 0 to ~27 bcf/d over the last 45 years.

Steelhead LNG/ 5

Supply Demand will soon outstrip committed supply.

Competition to fill 2025 demand is happening now.

(mtpa)

4.8% CAGRSupply Gap: ~150 mtpa

Source: BG Group. Steelhead LNG/ 6

0

100

200

300

400

500

2000 2005 2010 2015 2020 2025

Existing

Under Construction

Barriers destroyed

Upstream Resource & Expertise was a constraint….

Gas Reserves are everywhere now

And expertise is available but

scarce

Old Barrier

New Reality

Steelhead LNG/ 7

Largest LNG plant under construction in the world is….

… being built by a new entrant. Steelhead LNG/ 8

Competition

Estimated Supply Costs (Regional)

4.0

6.0

8.0

10.0

12.0

14.0

16.0

0 31 60 91 121 152 182 213 244 274 305

$/mmbtu

mtpaME ExpansionNigeria LNGAB Expansion

Iranian LNGTrin/Egypt/YemenPB Expansions

AB other greenfieldAustralia expansionCanada LNG

US BF LNGFLNGEast Africa LNG

Australian GF LNGVenezuela LNGRussian LNG

Canadian projects are generally cost competitive relative to other greenfield global developments.

Each project needs to compete.

Source: BMO Capital Markets, Street Research, Wood Mackenzie. Steelhead LNG/ 9

PROPOSED SITE: SARITA BAY

10

Deep water – no dredging

Easy access to Pacific

Excellent access by land

Naturally protected from tsunamis

Relatively flat

Protected from wind by

surrounding mountains

Stewardship via FN partnership

Summary

Asian Energy demand is growing – especially clean energy:

Globally, 1 person dies every 10 seconds from poor air quality

LNG has 50% less GHG than coal – well/mine to market

LNG from BC is economically sustainable …. Just.

Hishuk tsawak – (everything is connected)

Why are we taking so long to fix it?

[email protected]

www.steelheadLNG.com

Steelhead LNG/ 12