1. Natural Gas Issues VCU Energy and Sustainability Conference Michael Woytowich Honeywell International Global Energy Leader

2. Honeywell International, Inc Fortune 100 Company – Revenues $138 Billion – 130,000 employees worldwide Strategic Business Groups – Automation and Control Systems Energy Controls and Solutions, Thermostats – Transportation Systems Turbochargers, Brakes (Bendix) – Aerospace Defense and Space systems – Performance Materials and Technology Chemicals and Resins

3. Performance Materials and Technology Business Units – Specialty Products – Packaging – Electronic Materials – Semiconductor products – Fluorine Products – Refrigerants, blowing agents – Resins and Chemicals – Fibers – UOP – Catalysts Manufacturing sites in NA, Europe and Asia Hopewell, VA – Resins and Chemical site – One of the largest industrial users of natural gas in Va – Top 20 DVP electric customer – Natural Gas raw material used to make ammonia – Ammonia used to make Resins and Fertilizer

4. US gas prices have come down significantly since 2008 Mid-Atlantic Region Basis Prices are down also

5. Natural Gas Prices give the US a competitive advantage European prices tied to Oil Asian prices tied to LNG

6. Natural Gas holding US electric prices in check through out US Lower Cost Fuel for DVP plants and lower purchase power costs Fuel Only does not include Base Rate and Rider increases European electric prices rising on environmental costs Japan higher on closure of nuclear plants due to Tsunami

7. Benefits to US Economy From 1995 to 2005 US use of gas in industry declined Due to tight supply and high prices Growth in Electric generation use offset industrail decline During same period European natural gas use grew Source EIA Since 2005 US industry NG usage has been growing Production growth outpacing consumption European usage has been flat Economic Growth over 3% in 2013 The Petrochemical industry is expanding Many new projects being planned Ammonia plant to displace imports

8. Virginia Infrastructure Issues With Lower Costs Demand Grows Manufacturing growth Homes switching from Oil and Propane LNG Exports A number of VA manufactures would consider expanding Can not get firm natural gas due to pipeline capacity limits Recent cold Illustrates issues – Record send outs – Manufacturers were cut, curtailed or penalized Virginia Industry needs more pipeline capacity to grow Pipelines will not expand on speculation Need a large firm anchor commitment – 250,000+/day Pent up industrial demand large but not enough