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Kitimat LPG Export Project

PROJECT INTRODUCTION Our team of experts build projects from the ground up. From the environments in which we work to the communities in which we live, we recognize that projects need to be designed with people in mind. By working together with communities to design and plan infrastructure projects, we can better meet the needs of people while mitigating impacts to the environment. Introducing PTE 1

WHO WE ARE Headquartered in , , Pacific Traverse Energy (PTE) is an energy-focused infrastructure development company actively exploring strategic energy opportunities throughout Western .

Collectively, the PTE team has a track record of successfully financing and developing sustainable community supporting projects in British Columbia and throughout North America.

WHAT WE STAND FOR PTE has engaged the best BC- As a progressive, energy-focused based experts in energy project infrastructure development development, engineering, company, responsible development transportation, legal, and is core to our commitments and environmental science to support how we conduct our business. the development of its first project, the LPG Export Project. These commitments are informed by the respect for our people and the communities in which we work, and our shared interest in developing economically, socially and environmentally responsible projects.

Building relationships that build projects.

Our Commitments 3

HEALTH AND SAFETY At Pacific Traverse Energy, the health, safety and well-being of our people and the communities in which we work is paramount. We are committed to operating safely and providing everyone who works in the organization a safe and healthy workplace. We believe everyone who works for and with PTE has the right to return home to their families safe COMMUNITY and healthy each and every day. All business activities are conducted through the embodiment of our commitment to environmental, social, cultural, and economical sustainability. We value collaboration with Indigenous peoples and engagement with local communities to deliver on this commitment on all of our projects.

ENVIRONMENT We are committed to protecting the environment, managing resources responsibly and minimizing emissions through company activities. We proactively adapt our projects to fit the environments in which we work. We work with our customers, suppliers and industry associations to adopt similar environmental and responsible resource use commitments throughout the energy value chain.

Kitimat LPG 5 Export Project

Pacific Traverse Energy is working closely with the Haisla Nation and the District of Kitimat to plan, construct and operate a 1.25 million tonne per year LPG export project in Kitimat, BC.

The project will include the following key components:

•• New railyard to receive railcars

•• New LPG pipeline approximately 15 km in length that connects the LPG transported by rail to Kitimat railyard to the marine terminal

•• New marine terminal that includes a floating storage vessel and supporting equipment

LPG transferred from railcar to interconnecting pipeline

LPG transferred by interconnecting pipeline to marine terminal

LPG stored at marine terminal for export by ship Project Benefits

BENEFITS TO COMMUNITY Pacific Traverse Energy seeks to build projects that respect the values and needs of local communities. With Kitimat’s rich industrial history, our project will provide new employment and contracting opportunities that are aligned with the skills and experiences of local residents. BENEFITS TO Approximately 70-90 family- The Kitimat LPG Export Project supported operational jobs will will be built on land owned by the be filled locally, in addition to Haisla Nation. the anticipated 150-200 job opportunities during construction. The project will provide sustainable economic growth, family-supporting We are committed to purchasing jobs and training and contracting goods and services from local opportunities for the Haisla Nation businesses. and local First Nations.

We are committed to providing benefits that reflect the needs and interests of the Haisla Nation, the community of Kitimat and the Northwest BC region. 7 Our Project 9

The proposed locations of the project components have been sited to minimize interaction with existing commercial businesses and other industrial projects.

Kitimat LNG

Pipeline Marine Corridor Terminal

Bish Creek Forest Service Rd

Alcan Rd Kitimat LNG Industrial Site Rio Sandhill Tinto 3rd Service 9th Railyard Centre Saunders Haul Rd LNG Canada

BC Hydro Right of Way

Kitimat River

Kitimat Kitamaat Residential Village Area

Cable Car Residential Area Kitamaat Village Rd 37

Dease Lake Hwy Why Kitimat?

P P

RAIL & SHIP WORKFORCE KITIMAT Kitimat has rail access, an Recognized as an industrial Haisla Nation and District T R N established deep-water town that has established of Kitimat support the I C R R T C R port and recognized workforce and supporting development of Kitimat shipping routes. businesses with experience as a major energy export C R working on major projects. hub to Asia. N C R

Douglas Channel

R

R

Railyard LPG arrives at Railyard by Train.  Railyard located on previously disturbed land away from residential and business areas  Railyard setback 30m from Goose Creek

Renewable Natural features Transfer to 1 Train per Day LPG O oaded LPG Transferred energy used to support floating Export Vessel power facility (50-60 Cars) from Train to Pipelines terminal

Bish Creek Forest Service Rd

Pipeline to Terminal

LPG arrives by Pipeline

Goose Creek Marine Terminal Riparian Area (30m)

Railyard Douglas Channel Railcar Unloading and Processing Facility

Saunders Haul Rd Relocated

BC Hydro Right of Way Two Unloading Tracks

Floating Storage Ooading Vessel

Four Storage Tracks

> 1.5km to Nearest PTE Facility Access Rd Export Vessel Residential Area Existing CN Mainline

Wedeene Forest Service Rd Pipeline Corridor LPG is moved via Pipeline to Terminal. P P  Route follows established pipeline corridor 11  Underground pipeline  Pipeline route avoids residential and business areas

T R N I C R R T C R

C R

N C R

Douglas Channel

R Kitimat River

R

Marine Terminal LPG is cooled and stored on the Floating Storage and Offloading Vessel (FSO).  Land owned by the Haisla Nation  Zoned for Marine Terminal  Terminal will accept LPG export vessels  One Export Ship every 10-12 days

Renewable Natural features Transfer to energy used to support floating Export Vessel power facility terminal

Bish Creek Forest Service Rd

LPG arrives by Pipeline Marine Terminal

Douglas Channel

Floating Storage Ooading Vessel

Export Vessel LPG Explained

What is LPG?

PROPANE + BUTANE SAFETY BULK TANK “Liquefied Petroleum Gas” •• non-toxic •• gas at room temperature (LPG) is a natural gas liquid •• colourless •• liquid when cooled or consisting of propane, pressurized butane, or a combination •• non-corrosive of the two. •• odourless In Canada, LPG is most commonly sourced from natural gas processing.

Why LPG?

LPG STORAGE CLEAN ENERGY RURAL RENEWABLE POWER •• portable LPG is among the LPG is the ideal fuel LPG is the perfect safest and cleanest source for homes partner / back‑up •• clean energy sources and businesses energy supply for •• low carbon with significantly that are in remote / off grid renewable lower GHGs and air rural areas power generation. •• versatile quality emissions of concern than traditional sources of energy. 13

The Propane Export Opportunity The LPG Export Opportunity

North Asia Sources America Strong Demand Kitimat Increasing Supply

10 days

Gulf Coast Competitors

25 days

The supply of LPG in North America currently exceeds domestic demand and the trend is expected to continue. Asia is the world’s largest importer of LPG and their demand for LPG is 10 days forecast to grow rapidly. There is an opportunity to use this versatile fuel to support emerging economies in Asia as they transition to clean sources of energy while we continue to supply the Competitors 25 days people, communities and the economy of British Columbia.

How is LPG used?

HEATING BBQ / COOKING AUTOGAS

POWER GENERATOR AGRICULTURE INDOOR EQUIPMENT

LPG can be easily liquefied making it a highly versatile energy alternative. Our Plan Moving Forward

INTRODUCE Our goal is to continue to introduce the project and build and maintain relationships.

LISTEN We will continue to engage and provide opportunities to learn more about our project and listen to feedback.

RESPOND We will communicate updated project information to the community and create opportunities for ongoing discussions around project interest areas as we move towards construction.

It is our goal to deliver an accessible engagement program and to provide the community with meaningful opportunities to engage with us. 15 What We’ve Heard

Since 2017, PTE has met with First Nations, government, landowners, community groups, and key stakeholders to introduce the project.

INITIAL FEEDBACK: •• The importance of collaboration with landowners and stakeholders on all new, planned and existing projects.

•• Questions about public safety with regards to our facility, rail transport and shipping.

•• Questions about the location of the railyard.

•• What can be expected in terms of employment and training opportunities in Kitimat and throughout the Northwest region.

NEXT STEPS We are in the early development stages of our project. Our focus over the next year is to expand our community engagement program, initiate permitting and undertake the engineering studies that will allow us to make important project decisions in 2020. We welcome your input and look forward to providing more opportunities for feedback. Suite 404 - 717 West Pender St. Vancouver, BC, Canada V6C 1G9

623-B Enterprise Ave Kitimat, BC, Canada V8C 2E5 pacifictraverse.com