1. Boiler Operations, Maintenance and Performance Conference

2. Virtual Pipeline Access to natural gas where no pipeline network available System is based on compression/liquefaction, transportation, and decompression/regasification of natural gas Compressed/liquefied natural gas moved by various modes of transportation Industrial, commercial, and residential applications 2

3. CNG Versus LNG CNG  CNG operations are less capital intensive than LNG  CNG taken directly out of transmission lines; LNG requires cryogenic liquefaction  Variable operating costs are lower than LNG  Compressor Stations are built closer to customer’s site, reducing the transport distance  Delivered cost of CNG is frequently less expensive than LNG Hybrid CNG and LNG solution  Eliminate need for backup fuel 3

4. CNG Versus LNG LNG  Energy dense – 2 to 3 times more dense than CNG  LNG operations are capital intensive  More economical to transport long distances  More handling requirements for LNG – drivers must wear protective gear  LNG must be vented when not used  LNG may be better solution than CNG for peaking requirements 4

5. CNG Virtual Pipeline 5 Compressor Site takes natural gas from transmission pipeline loads it into tube trailers Trailer hauls CNG housed in carbon fiber cylinders to Offloading Station Offloading Station installed at customer site

6. Virtual Pipeline Advantages Greatly reduced CAPEX and investment risk Decreased maintenance costs over coal and heavy fuel oils Quicker implementation versus pipeline extension Readily scalable 6

7. Virtual Pipeline Advantages Increased flexibility Enhanced control of supply chain Virtual pipeline services identical to those of physical pipeline  Same flow to burner tip  Metering and billing (e.g., pay only when gas is used)  Ability to purchase commodity directly from a gas marketer  Same nomination process 7

8. Potential Virtual Pipeline Customers Pulp and Paper Mills Food Processors Asphalt Plants Mining Operations (e.g., lime) Chemical, Glass, Textile and Apparel Manufacturers Regional Hospitals Large Colleges or Universities with Centralized Plant Small and Medium Sized Power Plants 8

9. Conversion Considerations Ability of boiler to fire natural gas Stack design Chimney compliance with local and state codes Plant upgrade considerations (e.g., combustion air, electrical, and safety systems) Backup fuel Burner firing rate and efficiency Engineering Communication 9

10. Responsibilities Customer  Convert burner, boiler, kiln system to natural gas  Obtain permitting  Provide space in yard to accommodate Offloading Station, turning and parking of CNG trailers  Bring electricity, Internet, and low pressure gas piping to Offloading Station 10

11. Responsibilities Virtual Pipeline Service Provider  Build Compressor and Offloading Stations  Manage trailers and hauling from Compressor Station to customer site  Train staff and first responders (e.g., properties of natural gas and equipment)  Deliver CNG 24/7 in timely and safe manner  Assist with engineering and permitting 11

12. Thank You 122/29/2016 Council of Industrial Boiler Owners Boiler Operations, Maintenance and Performance Conference PresenterDavid Lavoie Vice President, Business Development dlavoie@ngadvantage.com 617-848-9050