WEAVERS COVE ENERGY

Fall River, MA NECA - Sept. 27, 2007

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LNG Key Points

LNG is a globally traded, environmentally preferred, safe fuel

LNG is essential for New Englands future energy supply

Weavers Cove offers significant benefits to Fall River

LNG will save regional consumers hundreds of millions of dollars in energy costs

HESS LNG

Global broker and advisor to the energy and transportation industries

Hess Corporation a global integrated energy company

Other project companies

Global Issues Matter

Growing world wide demand for natural gas LNG supply is a limiting factor Demand growing faster than supply Competition between import terminals for long-term supply LNG suppliers seek LNG import terminals that provide: Good pricing opportunities Reliable off-take arrangements Market diversity

Growth in global LNG trade over the past 25 years

North American LNG Terminal Import Summary Capacity Utilization

2007
Current Regas BCF/d Jan - June Est.

2006

2005
Imports BCF/d

2004

Everett Cove Point Elba Island Lake Charles Gulf Gateway Total US

0.7 ( + liquid) 0.75 0.8 1.8 0.3

0.55 0.47 0.49 0.99 0.05 2.55

0.48 0.32 0.40 0.39 0.001 1.59

0.47 0.61 0.36 0.29 0.001 1.75

0.48 0.57 0.29 0.45 1.79

Source: FERC (EIA) / PIRA/ BP/ Poten

U.S. Net Imports of Natural Gas, 1990-2030 (trillion cubic feet)

5 4 3 2 1 0
Mexico
History Projections

Overseas LNG Canada

-1 1990 1995 2000 2005 2010 2015 2020 2025 2030

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EIA Annual Energy Outlook 2007

Projected Gas Demand Growth by Sector, New England Region

NEGA

U.S. Natural Gas Basis (Location) Differentials ($/MMBtu)

Sumas ($0.96)

Tennessee Z-6 + $0.83

New England + $57 New England + $0.90

Kern River-WY ($1.19)

Chicago ($0.20)

NYC + $39 NYC + $0.93

Mid Atlantic + $0.38

SoCal ($0.74)

Panhandle-Oklahoma ($0.83)

Florida Gas $0.55

Waha Hub ($0.81)

= Negative Basis = Positive Basis

Katy ($0.47)

Henry Hub $7.18

Extreme: Jan. 15 04

Source: Natural Gas Intelligence Average of 2004, 2005 and 2006 spot prices

Sailing Distances From Potential LNG Sources to Select Eastern North American Import Terminals (Nautical Miles)

10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
Trinidad Algeria Nigeria Norway Qatar

Canaport Everett (Fall River) Cove Point Elba Island Lake Charles Quebec
Source: BP

Terminal Key

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PROPOSED LNG TERMINALS

Gros Cacouna LNG Rabaska LNG Newfoundland

Canaport LNG Quoddy Bay LNG + 2

Maple LNG

Excelerate LNG Neptune LNG Weavers Cove LNG

Broadwater LNG

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New LNG Import Terminals for Northeast

Location relative to market in southern New England and metro New York City area is a key component of price realization Closer is better than further

Not all LNG terminals are created equal Onshore storage in southern New England Onshore storage outside southern New England Offshore buoy system with on-board regas Offshore storage

Different locations and technologies result in different services / capabilities / costs to the market Only in-region facilities can economically provide peak day delivery capacity Only in-region facilities can provide rapid load swing or intraday delivery capacity for electric generators Weavers Cove is the only proposed facility that will provide trucked liquid LNG supply
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New LNG Supply for the Northeast Should

Provide needed supply for satellite tanks and the gas transmission system to supply LDC and electric generation requirements Utilize existing regional pipeline system to minimize new pipeline facilities and cost to reach market Increase diversity of supply sources Mitigate regional price volatility Capitalize on low LNG shipping costs New England is generally closer to the LNG exporters than other regions of North America Shipping is a major cost in LNG supply

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New England LNG Proposed Facilities

Illustrative Transportation Costs for reaching onshore Algonquin pipeline system

WCE Canadian Pipeline U.S. Pipeline Total

Units $/MMBtu

New Brunswick Offshore MA $ 0.17 $ 0.76 $ 0.93 0 $ 0.21 $ 0.21

0 $ 0.05 $ 0.05

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Terminal Site
TODAY By 2012

Development Plan 73 Acre Site (Formerly a marine oil terminal) LNG Terminal 400 MMCF/Day Sendout Capacity (800 MMCF/Day Peak Capacity) 200,000 M3 of LNG Storage Capacity (4.3 BCF of Gas Equivalent) Capability to Load up to 100 LNG Trucks per Day (90 MMCF/Day) A Jetty Capable of Handling up to 145,000 M3 Tankers Dredge Taunton River Channel / Expand & Deepen the Turning Basin Connections to Algonquin Gas Transmission Co. Interstate Pipeline 15

Algonquin G System

Cape Cod Extension

G System System G

Mill River Mill River

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Reports of Demise Greatly Exaggerated

Old Brightman Street Bridge is a narrow drawbridge with 90 width New Bridge with 200 width is partially constructed and work has commenced to complete Many tens of millions $ capital investment plus annual operating costs to retain old bridge Benefits of new bridge negated State seeking additional funding for bridges and highway infra-structure Project is committed to more forward with small ships if old bridge is not removed or modified Existing coal shipments traverse both bridges New LNG ships more maneuverable Local pilots in support Successful simulations On appeal at Department of Commerce

Coast Guard navigation concerns

RI CZM claimed deficient application

Dredging in Federal Navigation Channel

Dredge material has been analyzed and is 100% suitable for off-shore disposal
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WCE Project Timeline

July 2005 July 2006 Jan 2007 2007/2008 2008 2008 Winter 2008/2009 2011/2012 FERC Certificate issued MEPA Certificate issued Exercised option to purchase site Federal /Judicial review of various authorizations and permits Finalize Major Federal, State and Local Permits Execution of LNG Sales and Purchase Agreement Commencement of terminal construction Projected in-Service date

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The Weavers Cove Advantage

Direct access to the Algonquin system Onshore storage provides greater supply security with proven track record Swing capability to meet peak day and hour requirements Provide LNG via truck Lower LNG trucking costs Project location and cost structure will attract LNG supply

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Weavers Cove Terminal Project Benefits

Benefits to Region Reduced cost of natural gas for traditional LDC consumers and electric generation

Benefits to Fall River Increased jobs During construction, up to 500 union construction jobs During terminal operation, 40 full time employees plus similar number of contractors

Increased real estate taxes

Other benefits Company will reimburse City and other communities for additional security costs

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Summary
Weavers Cove Project is moving forward Location in the market is a key component to attract LNG supply Project will provide significant local benefits (jobs and taxes) Project will reduce energy prices in the Northeast and enhance system reliability Encourage agencies to permit numerous proposed LNG import facilities not all will be built & different types will have varying levels of utilization Ultimately marketplace will decide international LNG suppliers, import facility & local customers (LDC / generators)

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