Tacoma LNG Facility

Bill DonahueManager, Natural Gas Resources

Tacoma LNG FacilityA small-scale liquefaction and storage facility to serve

• PSE natural gas customers• Local shipping and marine companiesLocal shipping and marine companies

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About PSELargest energy company in Washington State

1.1 million electric customers

800,000 natural gas customers

Serve 10 counties, 6,000 square miles

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$3.2 billion annual revenue

Service area population: 4 million

$10.8 billion in assets

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Tacoma LNG FacilityProject In-service : October 2019

LNG liquefaction capability: 250,000 gallons/day

On-site storage: 8 million gallons

Vaporized gas injection capability (into PSE’s system): 66,000 Dth/day

Gas delivery to PSE’s system: Northwest PipelineGas delivery to PSE s system: Northwest Pipeline

Tacoma LNG Facility in Port of Tacoma, Washington

Liquefied Natural Gas• LNG is natural gas cooled to -260ºF. It’s odorless, colorless & non-toxic

• Converting natural gas to a liquid reduces its volume by 600 times which g g q ymakes it easier to store and transport

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Multiple-Use SynergiesTacoma LNG – Multiple-Use SynergiesThe multiple-use concept provides the opportunity to optimize resources by combing peak shaving and transportation fuel markets to reach economies of scale and maximize utilizationtransportation fuel markets to reach economies of scale and maximize utilization.

LNG Peak-Shaving Natural Gas Resource

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Multiple-Use SynergiesTacoma LNG – Key Commercial CustomerThe multiple-use concept provides the opportunity to optimize resources by combing peak shaving and transportation fuel markets to reach economies of scale and maximize utilizationtransportation fuel markets to reach economies of scale and maximize utilization.

TOTE Maritime have been a first mover in the shift to LNG as a Marine fuel in the USA Conversion of two existing ORCA ships that serve the Alaska marine highway

Ships operate solely within the ECA Conversion of existing engines to run dual fuel

Also running two LNG ships from Florida to Puerto Rico

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Tacoma LNG Facility – Customer Opportunities

Transportation Customers are Seeking Clean Fuel Options

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Permitting Process

• Over 16 local, state, and federal agency approvals needed

• Siting permits are complete

• Building permits will continued to be issued throughout construction phase

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Import/Export versus Bunkering Facility

Import & Export Small ScaleScale 5 – 15 mtpa 0.2 - 0.4 mtpaSiting 100’s of acres 10’s of acresShip size 87,000 – 266,000 m3 2,000 – 10,000 m3

LNG Flow Rate 12,000 – 14,000 m3/hour 300 – 600 m3/hour

Proposed Corpus Christi LNG Imp./Exp600+ acres Proposed PSE Facility

33 acres

Tacoma LNG Facility – Port of Tacoma SitePort of Tacoma site facilitates access to major maritime customers while also providing access to significant PSE natural gas customer loadnatural gas customer load.

• Proximity of LNG plant to key marine customer minimizes transportation costs• Cryogenic pipe will move LNG from the plant to marine fueling pier

Sit ll f i f li f ti d d• Site allows for expansion of liquefaction as demand grows

TOTE

Tacoma LNG Facility – Shore Side Fueling

• LNG delivered from Facility to

Blair Waterway Loading Platform

LNG delivered from Facility to Loading Arm via underground cryogenic pipeline

• Fuel loading arm located at end of Blair platform

• Blair Waterway platform and loading arm will be y p gused to fuel TOTE vessels during interim supply period and once LNG facility complete

• Ships will be fueled within a 4 hour window• Approx 2 000 m3 fuel per shipApprox. 2,000 m3 fuel per ship

Regional Supply

• Plant is located to easily supply LNG to region

• Barging LNG to Seattle for marine bunkering

• Located near;• RailyardsRailyards• Industrial areas• Highways

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Shared ResourceTotal

Daily Season Daily SeasonLiquefaction ModeG i Pl (D h/d) 2 000 19 000 21 000

Puget Sound Energy Puget LNG

Gas into Plant (Dth/d) 2,000          19,000        21,000        LNG Produced (Gallons) 23,800         226,200      250,000       

Storage ModeStorage (Dth) 538,000        145,000    683,000     g ( ) , , ,Storage (Gallons) 6,300,000       1,700,000  8,000,000    

Peaking Mode Vaporized to system (Dth) 66,000         416,500         Di erted S ppl (Dth) 19 000 121 500Diverted Supply (Dth) 19,000       121,500       

85,000         538,000         

Vaporized to system (Gallons) 772,800       4,876,000      Delivered to LNG Customers (Gallons) 226,200       1,424,000      

999 000 6 300 000999,000     6,300,000    

Capital Cost Allocation 100%based on firm entitlements

43% 57%

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and component capital costs

Thank you

Bill DonahueM N t l G RManager, Natural Gas Resources

Bill.Donahue@pse.comhttp://tacomacleanlng.com/http://tacomacleanlng.com/