Brookfield Infrastructure Partners L. P.

A GLOBAL INFRASTRUCTURE PARTNERSHIP

Natural Gas Conversion in the 21st Century

IGEM (Scottish Section)

21st June 2012

Neil Shaw, Chairman, International Energy Group Limited & CEO Brookfield Utilities UK Limited

Aidan Baglow, Project Manager, Natural Gas Conversion, Manx Gas Limited.

1

Brookfield Infrastructure Group

Brookfield Infrastructure Group operates a diversified portfolio of premier infrastructure assets

− $30 billion in assets under management

− Operations in North America, Europe, Australasia and South America

Transmission

$4 billion

Portfolio of utility assets in North and South

America, Europe and Australasia 8,750 km of

electricity transmission lines

Transportation

$6 billion

Diversified port and rail operations in Europe and Australia handling over 220M tonnes of cargo

per year

Timber

$4 billion

2.6 million acres of high quality timberlands

in North and South America

1 trillion cubic feet Note: As at September 30, 2011.

We own and operate high quality assets in five sectors on four continents

$15 billion

Leading producer and developer of energy focused on hydroelectric

and wind power 4,000+ MW of

installed capacity

Power Generation Energy

$1 billion

Interest in natural gas

transmission pipelines and storage systems in the

U.S. and Australia Delivering over 2.2TCF1

of gas per year

2

New York

5 corporate professionals

Toronto

26 corporate professionals

Vancouver

6 corporate professionals

Calgary

5 corporate professionals

Lima

3 corporate professionals

Bogota

3 corporate professionals

Sydney

28 corporate professionals

London

6 corporate professionals

Infrastructure Assets

Investment Offices

Sao Paolo

7 corporate professionals

Santiago

3 corporate professionals

Ottawa

15 corporate professionals

Boston

2 corporate professionals

12 Offices 125 Corporate Professionals Over 6,000 Operating Employees

Brookfield Infrastructure’s Focused Global Reach

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Who are IEG and Brookfield Utilities UK Limited?

Both owned by Brookfield, Infrastructure Partners

Businesses established 1836

40,000 customers

Manx Gas Natural Gas & LPG

Channel Islands LPG only

Brookfield Utilities UK International Energy Group

GTC

IGT

IDNO

PowerOn Connections

HV/EHV

4

UK Conversion

A New Era 1967 to 1977

5

Manx Gas – Why a Conversion Project in 2012 ?

Manx Gas

LPG only until 2003.

Natural Gas project developed based

around a gas fired power station in

Douglas. Also converted 15,000

customers in Douglas in 2003. 8,000

customers left on LPG and LPG/Air.

Leaves LPG customers with a bill 30%

higher than natural gas and for LPG/Air

networks restricted appliance choice.

UK conversion was 1967 to 1977

13 million homes, 40 million appliances.

6

Manx Gas – Why a Conversion Project in 2012 ?

2009 - Manx Gas identifies high capex over the next 5-10 years to maintain

ageing LPG infrastructure.

Government meetings to consider options:-

Other fuels

Natural gas conversion

Government could fund capex at lower cost than Manx Gas.

Joint development project set up (Manx Gas, Manx Electricity, Manx Government)

2011 Manx Government approve investment as follows:

£16m in extension of natural gas pipelines.

£8m in customer appliance conversion.

Investment to be recovered through transportation fees paid by Manx Gas and passed though to customers.

Regulation to be introduced

Island wide tariff.

2011 Conversion Project Commences.

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2012 Isle of Man

Natural Gas Conversion Project

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Lessons Learned from Douglas 2003

• Competence & training.

• Customer communications.

• Existing appliance gas safety defects.

• Open flued appliances.

• Sector size & duration.

9

Competence & Training

• Bridge the skill gap by creating new competence.

• UKAS accreditation for the conversion training

programme.

• Back to basics training.

• ‘One on one’ team leader support

• 100% gas work audit on initial programme.

• 100% gas work audit on open flued appliances

throughout programme.

• Use of a local engineers on the conversion team

to retain the skill set on the Island.

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• Stakeholder involvement throughout.

• Dedicated project call centre.

• Information and education programme.

• On site mobile customer support centre

during conversion.

• Website and social media.

• Radio & Press.

• Engage with customers and deliver on

expectation levels.

Customer Communications

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Existing Customer defects

• Long lead time from survey to conversion to

separate existing defects from conversion.

• Full gas safety inspection during survey to exceed

the requirements of Regulation 26(9).

• Resolving safety issues at no cost to consumer.

• 420 dangerous gas fires removed.

• 114 immediately dangerous appliances made safe

• 4200 minor safety issues resolved for customers.

12

• Conversion vs. Replacement of

appliances.

• Historic LPG/Air conversions.

• Availability of components.

• LPG Pipework.

• Compliance, approvals & conversion

procedures.

• Open flued appliances.

• Structure of the pre-conversion survey.

• Lack of a suitable information system.

Technical Challenges

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New mobile information system G.A.S

• Design & build a bespoke conversion information

system to deliver project objectives.

• Information at point of capture.

• 3G data communications.

• Minimal administrative support £0.5M saving

• Data carrier redundancy built in to system.

• Built around the way gas work completed

• Forces completion of the open flued audit

• Remotely hosted to minimise hardware cost.

• Manx Gas finalist for the 2011 Isle of Man

Excellence awards for excellence in the use of

technology.

14

Conversion Process

• Technical and process design.

• Pre-conversion survey.

• Network Sectorisation.

• Sector based conversion programme

• Risk based gas work audit.

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Network Sectorisation

• 77 sectors, three different CV gases.

• Historic network plans.

• Sector Proving & property identification.

• Safe Purging.

• Risk management.

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Challenges for 2012

• Converting over 1,700 different make and

model appliance from Bunsen burners to

CHP units.

• Ensuring every conversion kit and

appliance is in the right place at the right

time.

• Accessing 6,800 homes and businesses

on a date and time not set by the

customer without resorting to statutory

powers.

• Delivering the project safely, on time and

on budget.

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Project Summary & Progress

6800 properties.

9300 appliances.

Conversion area split into 77 individual conversion sectors

Each sector 2 takes days with a further day to clear up any

outstanding items.

Pre-conversion survey completed December 2011.

First conversion sector went live 27th February 2012.

As of today, 30 sectors complete and 2500 properties converted.

Project complete by March 2013.

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LPG AIR production and LPG Sites to be decommissioned

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Ramsey Production Plant

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Port St Mary Production Plant

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Peel Production Plant

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Ballathane LPG Plant

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Questions