Jordan Cove LNGLNG Development in a Low Oil Price Environment

Vice President, Jordan Cove LNG LLC, Veresen Inc.Vern Wadey

2015 Petrochemical ConferenceJune 7 9, 2015

Certain information contained in this presentation constitutes forward-looking information under applicable Canadian securities laws. Allinformation, other than statements of historical fact, which addresses activities, events or developments that we expect or anticipate may or willoccur in the future, is forward-looking information. Forward-looking information typically contains statements with words such as "may","estimate", "anticipate", "believe", "expect", "plan", "intend", "target", "project", "forecast" or similar words suggesting future outcomes oroutlook. Forward-looking statements in this presentation include, but are not limited to, statements with respect to: the ability of Veresen torecognize synergies between Ruby and the Jordan Cove LNG project, the cost estimate, timing of, and our ability to successfully obtainregulatory approvals for Jordan Cove LNG and the Pacific Connector Gas Pipeline, the timing of decisions to proceed with construction of, andthe in-service date of Jordan Cove LNG and the Pacific Connector Gas Pipeline and sources of gas supply to feed Jordan Cove LNG and thePacific Connector Gas Pipeline.

The risks and uncertainties that may affect the operations, performance, development and results of our businesses include, but are not limitedto, the following factors: our ability to successfully implement our strategic initiatives and achieve expected benefits; levels of oil and gasexploration and development activity; the status, credit risk and continued existence of contracted customers; the availability and price ofcapital; the availability and price of energy commodities; the availability of construction services and materials; fluctuations in foreign exchangeand interest rates; our ability to successfully obtain regulatory approvals; changes in tax, regulatory, environmental, and other laws andregulations; competitive factors in the pipeline, NGL and power industries; operational breakdowns, failures, or other disruptions; and theprevailing economic conditions in North America. Additional information on these and other risks, uncertainties and factors that could affect ouroperations or financial results are included in our filings with the securities commissions or similar authorities in each of the provinces ofCanada, as may be updated from time to time.

Although we believe the expectations conveyed by the forward-looking information are reasonable based on information available to us on thedate of preparation, we can give no assurances as to future results, levels of activity and achievements. Readers should not place unduereliance on the information contained in this presentation, as actual results achieved will vary from the information provided herein and thevariations may be material. We make no representation that actual results achieved will be the same in whole or in part as those set out in theforward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and, except asrequired by law, we do not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of newinformation, future events or otherwise. We expressly qualify any forward-looking information contained in this presentation by this cautionarystatement.

Forward-looking information advisory

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Publically traded (TSX: VSN) company with a market cap of $7 billion and earnings and cash flow reflecting the reliable, consistent performance of an energy infrastructure business model

Veresen Inc.: A strong and diversified portfolio of energy infrastructure assets

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Significant Development Activities:

Alliance Re-contracting (50% ownership): Rich gas transportation contracts post 2015 and 2020

Ruby Pipeline (50% ownership): Located to serve California and Jordan Cove LNG

Veresen Midstream (50% ownership): $1.5 billion western Canada gas processing assets. Growth prospects to $5 billion with Encana & CRP (Encana & Mitsubishi)

Jordan Cove LNG and Pacific Connector:Strategic infrastructure to export Canadian and U.S. natural gas supplies to Asia

Jordan Cove LNG Project Management Team, with significant LNG experience, led by Betsy Spomer, President and CEO of Jordan Cove LNG

Creation of a world-class LNG project management team

O&M Suitable O&M plan and structure Comprehensive O&M service agreement to the Project LNG/Cryogenic experience and hiring plans Training and handover procedures from the EPC

contractor

Customers/Commercial Agreements Optimal customer credit quality and mix Financeability of commercial agreements Appropriate risk sharing

Financing and Execution Target appropriate capital/markets for

the Project

Develop financing plan based on Project specifics

Full preparation of materials / financial modeling required

Regulatory Compliance with all relevant permits Review of regulatory strategy to ensure no

permitting delays with the development

EPC LNG and facility technology reviewed

and approved

Appropriate EPC contract form (Performance wrap LDs, contractor liquidity, etc.)

Ability of EPC contractor to provide security package and deliver project

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Design capacity of ~1 Bcf/d for 6 mtpa LNG terminal requirements expandable to 1.5 Bcf/d (later date)

232-mile, 36-inch diameter pipeline (1,440 psig MAOP)

Ownership: 50% Veresen; 50% Williams

Terminal and pipeline facilities filed for construction with FERCJordan Cove LNG: project components

6 mtpa facility (phase 1) expandable to 9 mtpa (later date)

400+ acre site includes: marine facility; two 160,000 m3 LNG tanks; four 1.5 mtpa liquefaction trains; two gas treating facilities; and, 420 MW power plant.

Ownership: 100% Veresen

Terminal: Jordan Cove LNG Pipeline: Pacific Connector

Power PlantLiquefaction

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Gas supply sourcing from both Canada and the United States

IDAHOOREGON

NEVADA

UTAH COLORADO

WYOMING

RUBY PipelineCheyenne Plains

OPAL Hub

MONTANA

Powder RiverBig Horn

Wind River

Denver / Julesburg

Piceance

Green River

Uinta

Raton

USRockies Basin

WIC

CIG

A L B E R T ABRITISHCOLUMBIA

SASKATCHEWAN

KingsgateBorder Point

TransCanada

Fortis

CALIFORNIA

PG&E

GTN

Spectra

Pacific Connector

Jordan Cove

AECO HUB

Malin Hub

AlbertaDeep Basin

Duverney

Horn

Alberta / SaskBakken

Cordova / Muskawa

BC / AlbertaMontney

Existing infrastructure accesses Western Canada Sedimentary Basin and U.S. Rockies

Flexibility in gas purchases Use of marketing and trading

companies Sourcing gas supplies by electronic

trading platforms Change and alter gas purchases /

sources at any time Contract purchase with producers JV for gas reserves in the ground

Western Canada Basin

Gas supply diversification and existing pipelines are Jordan Coves most unique benefits

Source: Veresen map files

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AEGS is a significant service provider to the Alberta petrochemical industry

Jordan Coves benefit to Western Canada and the Alberta Petrochemical industry

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Retains use of Western Canadas significant, existing natural gas infrastructure Promotes efficient use of gas gathering and

processing, field NGL extraction, significant regional gas pipeline systems

Maximizes use of the NGTL west transmission system and west straddle plants

Encourages natural gas production Gas flows through the west-leg delivery

system, for use at Jordan Cove LNG, contributes upwards of an incremental 20,000-25,000 bbl/d of ethane feedstock to Albertas petrochemical industry at Fort Saskatchewan and Joffre

LNG is outpacing global gas industry growth and justifying new, large scale capital expenditures

Globally, natural gas is becoming the dominant energy

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0%

5%

10%

15%

20%

25%

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

2020

2025

International trade ~ 31%

Source: Actuals: BP Statistical Review of World Energy 2014 Outlook: Wood Mackenzie (2015)

69%

21%

10%

LNG as a share of Global Gas (%)450 MTPA Projected by 2025

2013 Global GAS consumptionApproximately 323 Bcf/d

Global shares of primary energy %

LNG

PipelineDomestic

consumption

Gas

Global LNG buyers seeking new, reliable, price competitive, LNG sourcesPlentiful amounts of natural gas, sourced from all regions of North America

Source: Geological base map by PacWest Consulting9

Multiple facilities proposed within North America.

Source: FERC website and B.C. Government website

Jordan Cove

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Elba Island

Cove Point

Lake Charles LNGTrunkline LNG

1.) Listed by BC Government; 2.) Potential, Proposed, or Approved by FERC

Cheniere Sabine PassGolden Pass

Next Decade LNG

Magnolia LNG

Cameron LNG

SCT&E LNGVenture Global

Gasfin LNGWaller LNGG2 LNG

Cheniere Corpus ChristiGulf Coast LNG

Pangea LNG

Texas LNG

EOS / Barca LNGAnnova LNG

Live Oak LNG

CE LNGGulf LNGFreeport

Port LavacaRio Grande LNG

Port Arthur LNGAnnova LNG

Discovery LNGSteelhead LNG

Oregon LNG

WesPac LNGWoodfibre LNG

Orca LNG

Pacific NW LNGPrince Rupert LNG

Aurora LNGGrassy Point LNGNew Times LNG

Watson Island LNGWCC LNG

Kitimat LNGDouglas Channel LNG

Cedar LNGLNG Canada

Kitsault LNGStewart Energy LNG

TOTAL Proposed in Canada: 53.7 Bcf/d

Repsol LNG

Bearhead LNGGoldboro LNG

TOTAL Proposed in U.S.: 39 Bcf/d

Louisiana LNG

Main Pass LNGTorp LNGDelfin LNG

Downeast LNG

In the United States Regulatory approval, developers at-risk dollars, and existing pipeline infrastructure are key drivers:

Community acceptance and local land use permits FERC and DOE (and all other related permits and licenses) -- 5 year process FERC FEIS must be issued before U.S. DOE will consider non-FTA export application At least $70 - $100+ million at risk, per application, to reach FEIS

U.S. 3 5 year construction build after 5 year regulatory process

In Canada Social License and Economic viability issues are key drivers:

Community acceptance and local land use permits (community and First Nations) Extensive promotional and resource support by BC Government

Social license issues First nations, tax, environmental and political subjectivity Facility capital costs must be in line with global competitiveness 5 year construction build after 4 5+ year regulatory, social license process

Regulatory approval and construction timeline is at least 8 10+ years!Timeline reality for first LNG group -- prior to 2021

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Tolling models provide a direct connection to North American gas prices and provide customers with both commodity control and destination flexibility

Asia Pacific Buyers are attracted to the characteristics and price of U.S. tolling models

Pacific Connector Gas Pipeline

Jordan Cove LNG

Gas Marketing / Transportation and

Distribution

Regasification/ Pipeline / Gas Storage

LNG Transportation / Interim LNG Storage

Gas Production & Gas Sales / Marketing to

liquid Hub

Pipeline / Liquefaction / LNG Storage / Customer

Capacity

Traditional LNG JCC or Sales & Purchase Agreement price

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Tolling arrangements lock in the cost of infrastructure about 60% of overall costs are locked-in, with only gas commodity costs floating Traditional JCC and / or LNG Sales Agreements have 100% of infrastructure and commodity costs floating

with oil prices

Control over gas purchase and pipeline transportation strategies supply diversification (Henry Hub, Opal, AECO)

U.S. Gulf Coast brownfield tolling models have set LNG price targets for the first wave of LNG from North America before 2021

LNG delivered to Japan, at approximately $10.25 $10.75/MMBtu, based on $4 Henry Hub Gas LNG clearing price is based on U.S. / Canadian commodity gas price, pipelines, liquefaction infrastructure

cost, and cost of shipping to Asia regas facility

0.00

2.50

5.00

7.50

10.00

12.50

15.00

17.50

20.00

22.50

2011 2012 2013 2014 2015 2016 2017 2018

JCC Malin Hub Asia spot

AECO and OPAL gas prices, via Jordan Cove, are very competitive with USGC LNG pricing alternatives

Liquefaction tolling model infrastructure is priced independent of traditional JCC oil-linked LNG pricing

Source: Wood Mackenzie, ICIS, Poten & PartnersNote: Japan shown as example destination

$100

$80

$60U.S. LNG delivered cost to Japan, based on current$2.50/MMBtu gas cost at

Malin HubFuture Cost of Malin Hub Natural Gas???

Future Cost of JCC oil-linked LNG prices???

?

?

Malin Hub gas cost

Asia Spot LNG

JCC LNG cost

Del

iver

ed L

NG

into

Tok

yo B

ayU

S$/M

Mbt

u

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Shipping distance and logistics from the U.S. west coast is a competitive advantage over the U.S. Gulf Coast

USGC LNG~9 shipping days to Europe

Source: Terminal websites, DOE; Japan as comparative market

~9 shipping days to Asia(4300 nmi)

~9 shipping days to Asia

USGC LNG~22 shipping days to Asia (9200 nmi) plus Panama Canal Costs

Prince Rupert / Kitimat

GTN

Ruby Pipeline

TransCanada Alberta

Kingsgate

Spectra / Fortis

Malin Hub

Australia LNG~7 to 9 shipping days to Asia(3100 - 4300 nmi)

Jordan Cove

Pacific Connector

AECO Hub

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Opal Hub

Jordan Coves LNG shipping advantage offsets slightly higher capital costs versus U.S. Gulf Coast brownfield sites

Jordan Coves capital cost estimates rank well with other global LNG facilities

Source: Gas Strategies

Jordan Cove

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A handful of large-scale LNG export facilities will be in-service prior to 2021

Cove Point

Source: Terminal websites, DOE; Japan as comparative market

Cameron

Sabine Pass

Freeport

BC west coast LNG Developments

Jordan Cove

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Corpus Christi

Post 2021, economic expansions of these facilities are likely (DOE study examining 12 20 Bcf/d export limit )

LNG export capacity from Canada and U.S. in 2021: 11 13 Bcf/d

?

www.vereseninc.com www.jordancovelng.com

Thank you!

Vern WadeyVice President, Veresen

+1 403 213-3639vwadey@vereseninc.com

Jordan Cove LNGLNG Development in a Low Oil Price EnvironmentForward-looking information advisoryVeresen Inc.: A strong and diversified portfolio of energy infrastructure assetsCreation of a world-class LNG project management teamJordan Cove LNG: project componentsGas supply diversification and existing pipelines are Jordan Coves most unique benefitsJordan Coves benefit to Western Canada and the Alberta Petrochemical industryGlobally, natural gas is becoming the dominant energyGlobal LNG buyers seeking new, reliable, price competitive, LNG sourcesMultiple facilities proposed within North America.Timeline reality for first LNG group -- prior to 2021Asia Pacific Buyers are attracted to the characteristics and price of U.S. tolling modelsLiquefaction tolling model infrastructure is priced independent of traditional JCC oil-linked LNG pricingShipping distance and logistics from the U.S. west coast is a competitive advantage over the U.S. Gulf Coast Jordan Coves capital cost estimates rank well with other global LNG facilitiesA handful of large-scale LNG export facilities will be in-service prior to 2021Thank you!