LNG UPDATE SUEZ Energy North America, Inc. SUEZ LNG North America, LLC Calypso LNG Project, Florida Presentation to Flo

1. sssssssssssssssssssssssssssssssssssssssssssssssssssssssuez LNG UPDATE SUEZ Energy North America, Inc. SUEZ LNG North America, LLC Calypso LNG Project, Florida Presentation to Florida Gas Utility July 12, 2006

2. LNG Update • Global LNG Update • U.S. East Coast LNG terminals • Markets trade globally • LNG supply is evolving • Florida LNG Update • Proposed Florida projects • Calypso LNG project(s) • New England is a peninsular market just like Florida • Case Study – Everett LNG Terminal in Boston

3. North American East Coast TerminalsLean LNG Supply is Required Existing Regasification Terminals: 1.) Everett, MA – Suez LNG 2.) Elba Island, GA – Southern LNG 3.) Cove Point, MD – Dominion LNG Approved Under Construction: 2.) Elba Island, GA – Southern LNG (expansion) 4.) Canaport - St. John, NB - Irving Oil / Repsol Approved Not Yet Under Construction: 3.) Cove Point, MD – Dominion LNG (expansion) 5.) Weaver’s Cove - Fall River, MA - Hess LNG 6.) Crown Landing LNG – Logan Township, NJ - BP Filed Terminals Not Yet Approved: 7.) Calyspo – Bahamas & Offshore FL – Suez LNG 8.) Neptune LNG – Offshore MA – Suez LNG 9.) Broadwater LNG - Long Island Sound, NY – TransCanada / Shell 10.) Northeast Gateway – Offshore MA - Excelerate 11.) Ocean Express - Bahamas – AES Approved, Construction Halted: 12.) Bear Head - Point Tupper, NS - Anadarko Source – FERC as of June 15, 2006 12 4 1 10 8 5 9 6 3 3 2 2 7 11

4. LNG Market is Global • The three major gas consuming regions have shifting influences on world market • North American gas markets have the most price transparency and the most elastic demand of the three major LNG consuming regions. • Except for long term commitments, market players in North America are willing to forego planned LNG deliveries when more profitable opportunities are available elsewhere in the U.S., Europe, and to a lesser extent Asia • European gas markets are supplied by pipelines from the North Sea, Russia, and North Africa in addition to imported LNG. • Portions of European demand are becoming driven by power generation. • Asian gas markets are permanently short gas supply (no local resources) and exhibit the least amount of transparency with respect to demand and pricing. • Most LNG is imported under long term contracts. • China and India could become more of an influence. • Based on shipping distances and costs, LNG supply tends to have an Atlantic Basin or Pacific Basin bias. • As a result of region’s characteristics, North America is evolving as the hub around which global LNG markets are balanced. • Markets are linked to common – but competing – sources of supply, and worldwide prices will track at a common level, though with local and regional basis differentials

5. LNG Supply is Evolving • There are more natural gas reserves worldwide than crude oil reserves, but as yet gas is largely an untapped resource. • Ample lean supply for Florida and other U.S. east coast terminals • Major oil and gas producers and others will increasingly pursue the same global, low-cost, scale economy, reliable strategies as they have with oil. • Resource owners (countries) have become more sophisticated market players and are seeking more involvement in product marketing. • The demand for new gas is driving the need for new larger LNG projects and associated resources. • capital, credit, steel, shipyard slots, pipe mill capacity • Gas and oil differ in that two factors will limit the formation of OPEC-like activity • Certain major producing countries will not participate. • No “major ap” for gas is analogous to oil’s use for transport fuels.

6. Status of Florida LNG Projects • South Florida Projects • Calypso • Florida Deepwater Port – DWP and FERC permitting • Bahamas Land-based Terminal – awaiting government approval • AES • Bahamas Terminal – awaiting government approval • El Paso • FERC pipeline permitting • Gulf of Mexico • Onshore • Chevron, Gulf LNG – FERC permitting • Deepwater Ports • Conoco-Phillips, TORP, Main Pass – DWP and FERC permitting

7. Calypso’s Priority - Serving Florida’s Market Needs

8. What is the Calypso Deepwater Port?

9. Calypso Deepwater Port (DWP)Location and Visibility

10. Application & Permitting Schedule

11. Freeport Harbour Terminal & Calypso Pipeline

12. Who is SUEZ?

13. Everett LNG Terminal Access to MarketNew England is a Peninsular Market Just Like Florida Suez LNG’s Everett Terminal in Boston Tennessee Gas Pipeline Algonquin Gas Transmission • Storage Capacity at Everett– 3.4 Bcf gas equivalent of LNG • Vaporization Capacity – 700,000 MMBtu/day sustained & 1 Bcf/day peak • On average, Suez LNG NA meets about 20% of annual regional demand • LNG from Everett can meet 35% of New England’s gas demand on peak days • Main Pipelines in New England and Interconnections with Everett LNG Terminal • Algonquin Pipeline (AGT) -- Direct Access • Tennessee Gas Pipeline (TGP) -- Direct Access • KeySpan (Boston Gas) and Other Upstream Utilities -- Backhaul • KeySpan (Boston Gas) and Mystic Power Plant – Direct Access • Trucking sendout is about 100,000 MMBtu/day in Winter for gas peakshaving • LNG Terminal is located downstream from historic pipeline bottlenecks

14. Reference Information • Suez Energy North America http://www.suezenergyna.com/ • Suez LNG North America http://www.suezenergyna.com/ourcompanies/lngna.shtml • Calypso U.S. Pipeline http://www.suezenergyna.com/ourcompanies/calypso.shtml • Neptune LNG (New England Deepwater Port) http://www.suezenergyna.com/ourcompanies/lngna-neptune.shtml • Neptune LNG Brochure http://www.suezenergyna.com/ourcompanies/NeptuneMech.pdf • Neptune LNG Film Clip (download for best viewing – online viewing may be slow)http://www.suezenergyna.com/ourcompanies/Neptune.mpg • Distrigas of Massachusetts – Everett Terminal http://www.suezenergyna.com/ourcompanies/lngna-domac.shtml • Tractebel Gas Engineering & Tractebel Marine Engineering http://www.tractebel.de/8.0.html • U.S. Coast Guard Deepwater Ports Division http://www.uscg.mil/hq/g-m/mso/mso5.htm • U.S. Maritime Administration Deepwater Ports licensing http://marad.dot.gov/dwp/