Port Dolphin Deepwater Terminal Project Overview and Status

1. Port Dolphin Deepwater TerminalProject Overview and Status Prepared for: FGU Annual Meeting June 9, 2010

2. Contents – Höegh LNG Project Overview Business Case World LNG Market

3. Höegh LNG – Experience, Ambition and Innovation Over 30 years of LNG experience Took delivery of the world’s first spherical LNG carrier in 1973 Currently 7 LNG carriers in operation Latest addition June 2010 Long-term commercial strategy to expand in the LNG chain Technically innovative solutions and services High-quality vessels and operations International perspective

4. Höegh LNG – Services HLNG offers a complete package of floating services Production Transport Regasification & Market Access • Production – Production, Storage & Offloading (FPSO) • Transport – Standard Carriers / Shuttle & Regasification Vessels (SRV) • Regasification – SRV / Storage & Regasification Units (FSRU) • Market Acess – Deepwater Ports Innovation and leadership in the LNG supply chain

5. Höegh LNG SRV

6. Höegh LNG –Deepwater Port Terminal Concept Regasification plant STL Buoy connection Subsea pipeline to shore 3 MAIN COMPONENTS • Shuttle and Regas Vessel (SRV) • Regasification plant • STL Receiving Trunk • Propulsion/Power Generation • STL Unloading Buoy • Subsea Pipeline OPERATING PRINCIPLES • Vaporize the natural gas on board from a liquid state (LNG) to a gaseous state (“normal” natural gas). • Send the gas through an unloading buoy and into the subsea pipeline. • Transport the natural gas to shore using the gas pipeline for use and further distribution in market place.

7. Project Overview – Components • Shuttle and Regasification Vessels (SRVs) • Two unloading/mooring buoys located in 100 ft water depth and separated by 3.1 miles • 42 mile, 36-inch diameter Subsea Pipeline that comes ashore at Port Manatee • 3.9 mile Onshore Pipeline with one proposed interconnection station and others possible

8. Project Overview –Offshore Location

9. Project Overview –Purpose and Need • Purpose • The purpose of Port Dolphin is to provide the state of Florida with additional natural gas supply capacity and meet the increasing demand for natural gas serving the west and central Florida regions • Proposed start-up sendout of 400 MMscfd • Port Dolphin provides an alternative gas supply source in the short term and will meet firm, incremental gas demand over the long term • Need • Florida electric utilities are projected to increase their natural gas consumption and Port Dolphin will provide a cost competitive alternative to a pipeline expansion from onshore supply areas • The state of Florida government has publicly promoted the use of cleaner fuels for power generation purposes • In the next decade Florida power generators/distributors are expecting to increase usage of natural gas as part of their fuel mix

10. Business Case –Port Dolphin as Part of the Solution • West and Central Florida’s power companies welcome the alternate supply source our project provides by interconnecting with TECO and Gulfstream onshore • The project has gained public and political support • Construction will begin in 2012 with completion in 2013. The DWP license is in place and Port Dolphin has established new offices and made staff additions • Discussions with potential gas offtakers support initial volumes in excess of 425 MMscfd • Port Dolphin’s expansion capability from 400 MMscfd to 1200 MMscfd will only require additional SRV visits

11. Business Case –Commercial Structuring • Port Dolphin will deliver gas to interconnections with Gulfstream, TECO and possibly others • A single user will hold all pipeline capacity; charter the SRVs; deliver regasified LNG to the interconnections • No third party access is planned (or required) for Port Dolphin • Gas buyers will not be required to acquire additional pipeline capacity in order to receive gas supplies from Port Dolphin • The commercial arrangements for gas supply will be negotiated between the capacity holder and the downstream buyers • These may involve novel contractual arrangements

12. Business Case –Access to Key Florida Transportation Infrastructure

13. World LNG Markets –Worldwide Growth • Some 30% of cross-border gas transactions are LNG • LNG is produced in 17 countries with new locations being added • World LNG production has grown from 7 Bcf/d in 1995 to 20 Bcf/d • Production is forecast to grow more than 50% in the next five years

14. LNG Production 1995 - 2015(est.) Production Bcf/d 35 Probable 30 Planned 25 Existing 20 15 10 5 0 LNG Markets –Strong Growth in LNG Supply

15. LNG Markets –Trade Patterns and Trends • LNG is becoming more commoditized • Increased interregional trade flows • Expanding spot market: moving from regional to global basis • Always available • Increasing volumes of destination flexible LNG • Transportation is now commoditized: shipping surplus pushing rates down • Economies of scale have reduced costs: LNG competes with gas in all m markets outside of Japan, Korea and Taiwan- where LNG is the mainstay • U.S. imports set to increase from 1.2 Bcfd in 2009 • Take or pay obligations for pipeline gas in Europe limit LNG penetration

16. LNG Markets –Florida Perspective • Florida already receives regasified LNG from Elba Island on a firm and reliable basis. • Florida remains an attractive market for LNG • Shale gas locations are remote from Florida, will impact other LNG import locations to a greater extent. • LNG offers flexibility to meet a variety of needs. • Previous projects stymied by: • Quality • Inability to permit facilities • Gas interchangeability issue is now sufficiently resolved to encourage LNG import to Florida. • LNG suppliers understand the need to supply LNG on a dependable, firm basis.

17. LNG Markets –Port Dolphin’s Offering • New fuel source in a good location • Competitive option to existing supplies • Price advantage over supplies from a new system • Reliability plus flexibility