Lake Charles Harbor & Terminal District

1. Lake Charles Harbor & Terminal District 2013 Legislative Presentation

2. CHANNEL ECONOMIC DEVELOPMENT DEVELOPMENT SASOL IFG Bulk Terminal No. 1 Trunkline LNG Lake Charles Clean Energy Ameristar G2X Magnolia LNG Sempra LNG

3. IFG UPDATE • IFG Construction • New Concrete Silos Complete • Conveyors, Dock Improvements & Ship Loader Scheduled • Facilities Complete March 2014 • UP Construction • Ladder Tracks & Wye by Chennault • Port Infrastructure • Loop Tracks • Dredging • Port Cleat Road

4. MAGNOLIA LNG

5. MAGNOLIA LNG Project Site at Point Calcasieu (Industrial Canal South Shore PLC Tract 475), Lake Charles, Louisiana

6. MAGNOLIA LNG Locations of existing gas pipeline infrastructure adjacent to the Site

7. MAGNOLIA LNG Preliminary Layout for Phase 1 (2 x 2 mtpa LNG Trains) with Provisions for the Future Phase 2

8. MAGNOLIA LNG

9. TRAFFIC OUTLOOK

10. LAKE CHARLES CLEAN ENERGY LLC PROJECT HIGHLIGHTS

11. LAKE CHARLES CLEAN ENERGY LLC PROJECT HIGHLIGHTS Feedstock At design, annual usage of approximately 2.4 million tons of petroleum coke or petcoke. Petcoke is an energy-rich waste byproduct produced from refining heavy crude oil, high in sulfur content. 25 percent of world’s petcoke is produced within 300 miles of the LCCE site. Gasification Technology LCCE will use advanced gasification technology to avoid harmful emissions while extracting energy from petcoke. LCCE will cleanly convert the feedstock chemically under high temperature and pressure to create clean synthesis gas with very low emissions.  Methanol, Hydrogen and Byproduct Production LCCE is expected to be one of the world’s lowest-cost producers of methanol. Over 1 million metric tons of methanol will be produced each year, with the majority already committed under long-term off-take contracts. All of the hydrogen and argon produced annually will be sold under long-term off-take agreements. Approximately 400 thousand tons of sulfuric acid will be produced annually from the sulfur in the feedstock and is expected to be sold into the industrial market under long term off-take agreements.  Annual Liquefied Carbon Dioxide (CO2) Production Facility to employ state-of-the-art technology to capture and sell approximately 90 percent of its CO2 for enhanced oil recovery. Approximately 4.5 million tons annually will be sold to Denbury Onshore LLC for use in enhanced oil recovery operations in the Gulf Coast Region (estimated to result in additional domestic oil recovery of 6 million to 9 million barrels.) Emissions Performance Highlights As a result of using gasification technology and state-of-the-art controls, permitted emissions will create zero liquid discharge of gasification process water and limited Sulfur Dioxide or Nitrogen Oxides emissions. In addition, 90 percent of the Carbon Dioxide will be captured and used for enhanced oil recovery operations.

12. G2X ENERGY, LLC • G2X Energy - Houston based company • Option to lease 200 acres (up to 3 years) • Plant site located on Industrial Canal west of Alcoa • $1.2 billion natural gas to gasoline plant

13. G2X ENERGY, LLC

14. G2X ENERGY, LLC • G2X is mostly owned and controlled by two major other companies - Southern Chemical Company and The Proman Group. • Proman is a large international company based in Switzerland, Germany, and Trinidad, which constructs, operates, and maintains large methanol and other manufacturing facilities.

15. G2X ENERGY, LLC • Proman is the largest world-wide manufacturer of methanol. Southern Chemical is also a major producer of methanol. • G2X has obtained from ExxonMobil a proven process of manufacturing methanol from natural gas and then further processing it to produce gasoline. • The plant will produce 12,500 barrels of gasoline per day. The gasoline will be sent out by pipeline and by barge or vessel.

16. NAVIGATION • Channel Dredging and Funding • Beneficial Use of Dredged Material • The Future

17. DREDGING • Bar Channel – Currently being dredged. • Mile 5 to 17 – Dredged to 300’ width rather than 400’ • Mile 17 to 34 – To be advertized in first quarter of 2013 • Port committed to a beneficial use project to get DNR approval • Mile 34 to 36 – Recently awarded after protest

18. FUNDING • FY 12 – Channel dredged to less than authorized width • FY 13 • Substantially below need ($15.7m vs. $50.9m) • Sequestration impact unknown ($14.4m @8%) • DMMP funded at $5.2m vs. $12.9m needed • Continuing Resolution may prevent use of DMMP funds in FY 13 • FY 14 – No budget yet; Need $50m for O&M and DMMP

19. BENEFICIAL USE OF DREDGED MATERIAL • Cameron Shoreline • Calcasieu Lake – Dribble vs. Landslide • Port’s 125,000 cubic yard commitment • Other Sites • Designated in DMMP • Identified through Local Input

20. FUTURE ISSUES • Funding • Corps’ O&M Budget must be increased • The full amount in the Harbor Maintenance Trust Fund must be used • Channel Widening and Deepening • Without Channel widening, increased vessel count will require one-way traffic • If the Channel is widened, should it be deepened, too

21. SUMMARY INCOME STATEMENT ** Excludes Grants , Mark to Market adjustments and non-cash write off of assets

22. COMPARISON BY PORT

23. BALANCE SHEET AS OFDECEMBER 31, 2012

24. Investments 1/1/2013 $ 44,336,000 + Cash Flow $ 12,738,000 Capital Spending – Port Funded (Total Projects & Equipment less expected funding by PPP / CO / Other on existing and future projects) ($ 50,503,000) Investments 12/31/13 $ 6,571,000 CASH OUTLOOK

25. ANTICIPATED BOND ISSUE TIMEFRAME • April – Submit initial resolution to Port Board for approval • May – File application with LA State Bond Commission • June – Anticipated final approval from the LA State Bond Commission • July – Submit Bond Financing documents to Port Board for approval • September – Bond pricing • October – Closing

26. PORT PRIORITY PROJECTS FUNDED • New Stacker/Reclaimers @ BT-1 (Complete May 2013) • $9M State • $10.8M Port • Loop Tracks Phase II (Under Construction) • $5.4M State • $2.6M Port • Ladder Tracks (Under Construction) • $1.2M State • $2.9M Port • Wharf & Transit Shed #1 (Design Phase) • $9.6M State • $9.1M Port

27. PORT PRIORITY PROJECTS REQUESTED • New Dry Bulk Dock @ BT-1 • $5.4M State (requested) • $34.6M Port

28. CAPITAL OUTLAY FUNDED • Command & Control Center (Under Construction) • $290,000 State approved • $1,070,000 Port via Federal Grant • Dockside Monopiles (LEEVAC) • $153,000 State • $101,000 Port

29. CAPITAL OUTLAY REQUESTED • Sallier Lead Track Relocation • $1M • Berth 8 Dredging • $250,000 • New Administration Building • $500,000