Pentex Alaska Natural Gas Company, LLC

AIDEA Presentation

Prepared By: Daniel W. Britton, President

• Fairbanks Natural Gas (FNG), Arctic Energy Transportation

(AET), Polar LNG (Polar) and Titan Alaska (Titan), are wholly

owned by Pentex Alaska Natural Gas Company, LLC.

• FNG is the local Gas Utility serving much of the Fairbanks

North Star Borough.

• Titan owns and operates an LNG plant in Pt. Mackenzie,

Alaska.

• AET owns and operates LNG & CNG fueling infrastructure for

use in the transportation industry in Alaska.

• Polar is developing an LNG Plant on the North Slope of

Alaska.

the Future of Alaska:

Pentex Alaska Natural Gas Company, LLC

• 1997 – FNG constructs LNG Plant in Pt. Mackenzie, Alaska and begins construction and

service of natural gas via LNG to consumers in Fairbanks, Alaska.

• 1998 – FNG constructs small remote storage and vaporization facility for the CIRI Talkeetna

Lodge in Talkeetna, Alaska.

• 1998 to Present – FNG continues expansion of natural gas distribution system, LNG

production, delivery and storage capacity to expand natural gas service to Fairbanks.

• 2007 – Polar LNG begins development work on the potential for an increased LNG supply

via construction of an LNG plant on the North Slope of Alaska.

• 2012 – AET constructs and commissions two LNG fueling stations to provide fueling

capabilities for LNG use in the transportation industry.

• 2012 – FNG announces intent to construct a 5.25 MM gallon storage facility in Fairbanks

necessary to support increased availability of LNG supplies in Fairbanks.

• 2013 – Pentex submits comprehensive proposal to AIDEA to participate in IEP, and requests

a service area expansion from the RCA.

• 2013 – Titan receives and places in service two LNG powered transports proving viability of

LNG for transportation industry in Alaska.

• 2013 – Titan provides COLASKA with short term LNG supplies to a portable asphalt plant

for a road project on the Parks Highway.

the Future of Alaska:

Pentex Alaska Natural Gas Company, LLC

Pt. Mackenzie LNG Plant

The liquefaction plant must first strip the Cook Inlet gas of water and CO2. The gas is passed

through a cascade cooling system of propane and ethane before taking a pressure drop and

producing LNG. FNG operates around the clock during peak demand and has a peak

production capacity of approximately 50,000 gallons of LNG per day.

LNG Trailer Transport

FNG operates 14 LNG transports to deliver LNG to 3 storage facilities – Two in

Fairbanks and the CIRI Talkeetna Alaskan Lodge. FNG contracts the trucking to a

third party carrier. Each delivery contains about 9,500 gallons of LNG or 800,000

cubic feet of gas. That is enough to heat 30 average Fairbanks homes in the coldest

month of the winter. FNG completes about 6 deliveries a day at -40 F. FNG

delivers over 10,000,000 gallons annually.

LNG Storage & Vaporization

FNG operates two storage facilities in Fairbanks with a total storage capacity of

340,000 gallons. FNG maintains enough storage to provide for 5 days of supply

during the peak of the winter season.

Distribution Network

FNG provides natural gas service to over 1,100 residential and commercial

customers through approximately 70 miles of underground distribution piping. FNG

delivers approximately 900,000 MCF of gas annually.

Talkeetna Lodge LNG Storage

& Vaporization

The CIRI Talkeetna Lodge is a 212 room Lodge operating in the tourism season.

FNG provides LNG year round for heating, hot water and cooking. There is 10,000

gallons of LNG storage on-site for uninterrupted supply of natural gas. The Lodge

receives a delivery of LNG approximately every two weeks.

LNG Fueling Station -

Fairbanks

LNG Fueling Station –

Big Lake

CNG Fueling Station & Trucks

Why Partner with Pentex?

• Pentex is the only entity with an Alaska based management team and

employees currently operating all aspects of the LNG supply chain including

production, transportation, storage, vaporization, transmission and distribution.

• Pentex has completed extensive development work on a North Slope LNG

facility, including gas supply, engineering and permitting. This extensive

work has resulted in significant capital cost reductions and improved

scheduling certainty.

• Pentex has existing assets which can enhance and support the North Slope

facility, including LNG supply, storage facilities and market demand.

• Pentex has over 15 years of experience operating an LNG and natural gas

distribution system in Alaska.

• Pentex recognizes the need for natural gas to provide economic relief and

environmental benefits to Alaskans and is the entity that proposed a

partnership with AIDEA in 2007 and has supported it since.

• Pentex can move quickly with AIDEA and is in the best position to support the

aggressive schedule established by the IEP.

Thank you!