LNG Truck Loading Facility &

Natural Gas distribution in Puerto Rico

O c t o b e r 2 0 1 5

Table of contents

Gas Natural Fenosa overview

Gas Natural Fenosa in Puerto Rico

The Truck Loading Facility Project

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Gas Natural

Fenosa overwiew1

Gas Natural Fenosa in Puerto

Rico

The Truck Loading Facility Project

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About Gas Natural Fenosa

Gas Natural Fenosa is a leading group in the energy

sector, pioneering in gas and electricity integration.

We are present in more than 30 countries, where it

offers service to more than 23 million customers on the

five continents, with 14,8 GW installed power and a

diversified mix of electricity generation.

Gas Natural Fenosa’s mission is to meet the energy

requirements of society, providing quality products and

services that are respectful to the environment, offering

shareholders growing and sustainable performance

and offering employees the possibility to develop their

professional competencies.

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Gas Natural Fenosa around the world

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2 Gas Natural Fenosa in

Puerto Rico

Gas Natural Fenosa overwiew

The Truck Loading Facility Project3

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Gas Natural Fenosa in Puerto Rico: EcoEléctrica

Gas Natural Fenosa is a committed long term investor in Puerto Rico since 2003, when it acquired a major stake in the

EcoEléctrica complex.

Part of the GNF acquisition on the EcoElectrica project was the Tolling Service Agreement (the “TSA”).

GNF replaced Enron’s in the TSA as Customer

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ECOELÉCTRICA:

LNG fired 540 MW Combined Cycle power plant

LNG terminal with a storage capacity of 150,000 cubic

meters (possibility to built a second storage tank and

double this capacity)

Located in Peñuelas, in the south of Puerto Rico

Supplies about 15% of the Island's energy needs

Peñuelas

San Juan

THE TOLLING SERVICE AGREEMENT:

The TSA provides GNF with the exclusive rights to

all the excess storage and forwarding capacity at

EcoElectria LNG terminal as well as the rights to

add more capacity in such facilities.

Gas Natural Fenosa in Puerto Rico: new business project

The important financial crisis that is affecting Puerto Rico challenges the

country to look for incentives to boost economic activity.

Natural gas, currently not available in Puerto Rico, is necessary to

improve the competitiveness of different industrial sectors in the island.

The capability of natural gas distribution in Puerto Rico will allow to take

advantage of this fuel availability in the US.

The substitution of contaminating fossil fuels by natural gas will result in

less emissions of green house gases and other environmental benefits

which are required to ensure observance of environmental regulations.

Road transportation, as an alternative to a pipeline distribution system, is

a well known technology used worldwide to distribute natural gas, with

excellent LNG safety records.

The high energy costs in Puerto Rico stimulate the demand for natural

gas not only to substitute other fuels used in industrial processes but to

develop CHP (Combined Heat and Power) systems.

The storage capacity available in the Ecoelectrica LNG terminal provides

a good guarantee of supply. 8

3 The Truck Loading Facility

Project

Gas Natural Fenosa overwiew

Gas Natural Fenosa in Puerto Rico2

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GNF has the aim of developing the natural gas market in the island. To achieve this idea GNF is planning to build a LNG Truck

Loading Facility next to EcoElectrica´s site.

Natural Gas represents the new alternative to the local energy sector

The scope of these facilities will allow the supply of natural gas to users located in areas where there is no access to gaspipelines (currently, the whole country)

Natural gas will be transported by trucks as Liquefied Natural Gas (LNG), supplied directly from the 150,000 m3 EcoElectrica LNGstorage tank

LNG is received at user Satellite Plants in order to be vaporized and consumed.

In the mid term, the GNF target will be the Natural Gas distribution to residences and commerce.

Truck Loading Facility: Aim of the project

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GNL

GN

GNL GNL

GNL

GNLGN

Construction site

EcoEléctrica

Truck Loading

Facility

LNG Import Terminal

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Truck Loading Facility: technical deployment

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The Project involves two parts:

1. EcoElectrica´s Connection (Cryogenic Pipeline)

2. LNG Truck Loading Facility (TLF) next to

EcoElectrica´s boundaries (GNF´s ownership)

EcoElectrica is a key part in the deployment Project

Truck Loading Facility site

EcoElectrica site

Double (2-ways) cryogenic pipeline to be built in EcoElectrica site.

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LNG Terminal Tank

internal external

1 LNG Supply (Vaccum Jacket -VJ-) (*) 4'' 6'' 3,660 ft

2 LNG Return (Vaccum Jacket -VJ-) (*) 1.5'' 3'' 3,660 ft

3 Emergency LNG release from VJ Piping 3,660 ft

Boil-off Gas (BOG) 2,750 ft

(*) Cryogenic

DIAMETERLENGHT

1,5''

6''

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Truck Loading Facility

PR LNG Regulators

• DTOP is taking all natural gas regulation under Its jurisdiction by Law 149 of September 2014

Artículo 407.-

Los deberes del Secretario de Transportación y Obras Públicas serán:…..

(6) Regular a toda empresa, persona natural, persona jurídica y negocio, independientemente de la forma en que se haya constituido, que fuere dueño, controlare, explotare o administrare cualquier tubería en Puerto Rico que se utilice en relación con, o para facilitar la transmisión, almacenaje, distribución o entrega de cualquier producto mediante ésta.

(7) Regular la transmisión, distribución o entrega de gas natural por tubería, así como la importación, producción, generación, transmisión, entrega, suministro o distribución de gas natural, elaborado, derivado o cualquier líquido susceptible de convertirse en gas natural y distribuido por tubería, cilindro o cualquier tipo de envase. Además tendrá el deber de velar y exigir el cumplimiento de sus normas y reglamentos, y de las normas y reglamentos del “Pipeline and Hazardous Materials Safety Administration” del Departamento de Transportación de Estados Unidos de América o sus sucesores, por parte de las empresas, negocios y personas naturales o jurídicas regulados al amparo de este inciso, a tenor con los acuerdos interagenciales correspondientes. ….

Artículo 4.-El Secretario de Transportación y Obras Públicas establecerá, mediante Orden Administrativa, una oficina, sección, división o directorado de regulación de empresas de conducción por tubería y gas natural, la cual podrá ser establecida como unidad administrativa independiente adscrita a dicho Departamento, o como parte de algún programa o iniciativa dentro de éste.

Regasification station at Customer site

CODE USE: NFPA 59A

Regasification station at Customer site: bulk tank

CODE USE: ASME Sec VIII Div-1 with “U” Stamp +Mandatory appendix-44 (Cold stretching)

in austenitic stainless steel according toASME SA240 Type304

Carbon steel: ASME SA516 Gr.70N

Regasification station at Customer site: LNG Transportation

and discharge at customer site

LNG trailers built in the US comply with the Department of Transportation’s design standards DOT CFR49 specifications – 49 CFR parts 173.318 and 178.338 (MC-338). This standard is used for trailers carrying cryogenic liquids, such as LNG, liquid nitrogen and liquid oxygen, from manufacturers who specialize in supplying such equipment.

LNG Telemetry system

• Each one of the Gas Station at customer site:

1. Is being monitored 24/7 via telemetry system.

2. Key readings are Tank level - Tank pressure and temperature of the system.

3. With these readings dispatching is planned for the truck to arrive at or before tank level reaches 30%.

4. If any of these critical parameters readings are out of normal set-points a communication with customer is established

an service people is dispatched to correct the malfunction.

LNG logistics to St Jude

24 hr. Telemetry monitoring system- Tank level- Pressure

@ set point established (30% of tank level) a dispatch of a new load is coordinated

76 trucks per year

LNG logistics in hurricane season:

• When a TS/hurricane warning for PR is declared the following steps are to be followed:

1. Refill all customer tanks up to maximum allowed – one week prior to event hits PR.

2. During the event all communications must remain open with customers and authorities to follow path and

determine potential affected areas and if operation at customers will be interrupted.

3. After the event passed PR close examination of the affected areas and establish alternate routes to reach

each one of our customers sites.

4. Communicate to customers any damage that may affect the supply of LNG.

5. If normal route is affected comment on the potential new route and time effect if any to the new

distribution path for natural gas supply.

6. Declare “back to normal operation” statement to each customer.

Business model for PR

Gas Natural Fenosa in Puerto Rico: new business prospects

Fuel price evolution during the last 15 years.-

(Elaborated by GNF)

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Historically, natural gas has been the cheapest fuel alternative in the US.

Questions?

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