1. LNG USA Houston, Texas J. Mark Robinson, Director Office of Energy Projects Federal Energy Regulatory Commission September 23, 2004

2. FERC Office of Energy Projects 2 Gas Facts Natural gas is the economic/ environmental fuel of choice. 96% of natural gas reserves are outside North America. 25% of World natural gas consumption occurs in the US.

3. FERC Office of Energy Projects 3 Gas Supply Projected domestic production will not keep pace with projected demand Pipeline imports from Canada are declining LNG is the supply source that will fill the demand-supply gap.

4. FERC Office of Energy Projects 4 Project Status… Cameron LNG – Started construction of LNG facility in June 2004 Freeport LNG –Proposes start of construction of LNG facility in September 2004 Lake Charles LNG – Expansion of deliverability approved at the September 15 Commission meeting Weaver’s Cove – Draft EIS issued August 2004 Sabine Pass – Draft EIS issued August 2004 (Cheniere)

5. FERC Office of Energy Projects 5 Applications Filed: Weaver’s Cove (CP04-36-000) Cheniere, Corpus Christi (CP04-37-000) Cheniere, Sabine Pass (CP04-47-000) Sound Energy Solutions (CP04-58-000) Keyspan (CP04-223-000) ExxonMobil, Golden Pass (CP04-386-000) ExxonMobil, Vista del Sol (CP04-395-000) BP, Crown Landing (CP04-411-000) Project Status… Pre-Filing: Occidental Energy, Ingleside (PF04-09-000) Sempra, Port Arthur (PF04-11-000) Cove Point, Dominion (PF04-15-000)

6. FERC Office of Energy Projects 6 Approved: AES Ocean Express (CP02-90) Calypso Tractebel (CP01-409) Pre-Filing: El Paso, Seafarer (PF04-08) Applications Filed: Working on DEIS with USCG –Freeport-McMoran, Main Pass (CP04-68) –Conoco Phillips, Compass Pass (CP04-114) –Exxon Mobil, Pearl Crossing (CP04-374) LNG Project Status - Associated Pipelines

7. Existing Terminals with Approved Expansions A. Everett, MA : 1.035 Bcfd (Tractebel – DOMAC) B. Cove Point, MD : 1.0 Bcfd (Dominion – Cove Point LNG) C. Elba Island, GA : 1.2 Bcfd (El Paso – Southern LNG) D. Lake Charles, LA : 1.2 Bcfd (Southern Union – Trunkline LNG) Approved Terminals 1. Hackberry, LA : 1.5 Bcfd, (Sempra Energy) 2. Port Pelican: 1.6 Bcfd, (Chevron Texaco) 3. Bahamas : 0.84 Bcfd, (AES Ocean Express)* 4. Gulf of Mexico: 0.5 Bcfd, (El Paso Energy Bridge GOM, LLC) 5. Bahamas : 0.83 Bcfd, (Calypso Tractebel)* 6. Freeport, TX : 1.5 Bcfd, (Cheniere/Freeport LNG Dev.) 7. Lake Charles, LA: 0.6 Bcfd (Southern Union – Trunkline LNG) Proposed Terminals and Expansions – FERC 8. Fall River, MA : 0.8 Bcfd, (Weaver's Cove Energy/Hess LNG) 9. Long Beach, CA : 0.7 Bcfd, (Mitsubishi/ConocoPhillips – Sound Energy Solutions) 10. Corpus Christi, TX : 2.6 Bcfd, (Cheniere LNG Partners) 11. Sabine, LA : 2.6 Bcfd (Cheniere LNG) 12. Corpus Christi, TX : 1.0 Bcfd (Vista Del Sol - ExxonMobil) 13. Sabine, TX : 1.0 Bcfd (Golden Pass - ExxonMobil) 14. Logan Township, NJ : 1.2 Bcfd (Crown Landing LNG – BP) 15. Bahamas : 0.5 Bcfd, (Seafarer - El Paso/FPL ) 16. Corpus Christi, TX: 1.0 Bcfd (Occidental Energy Ventures) 17. Providence, RI : 0.5 Bcfd (Keyspan & BG LNG) 18. Port Arthur, TX: 1.5 Bcfd (Sempra) 19. Cove Point, MD : 0.8 Bcfd (Dominion) Proposed Terminals – Coast Guard 20. California Offshore: 1.5 Bcfd (Cabrillo Port – BHP Billiton) 21. Louisiana Offshore : 1.0 Bcfd (Gulf Landing – Shell) 22. So. California Offshore : 0.5 Bcfd, (Crystal Energy) 23. Louisiana Offshore : 1.0 Bcfd (Main Pass McMoRan Exp.) 24. Gulf of Mexico: n/a (Compass Port - ConocoPhillips) 25. Gulf of Mexico : 2.8 Bcfd (Pearl Crossing - ExxonMobil) Planned Terminals and Expansions 26. Brownsville, TX : n/a, (Cheniere LNG Partners) 27. Coos Bay, OR: 0.13 Bcfd, (Energy Projects Development) 28. Somerset, MA : 0.65 Bcfd (Somerset LNG) 29. Belmar, NJ Offshore : n/a (El Paso Global) 30. Altamira, Tamulipas : 1.12 Bcfd, (Shell) 31. Baja California, MX : 1.0 Bcfd, (Sempra & Shell) 32. Baja California - Offshore : 1.4 Bcfd, (Chevron Texaco) 33. California - Offshore : 0.75 Bcfd, (Chevron Texaco) 34. St. John, NB : 1.0 Bcfd, (Canaport – Irving Oil) 35. Point Tupper, NS 1.0 Bcf/d (Bear Head LNG - Access Northeast Energy) 36. Pleasant Point, ME : 0.5 Bcf/d (Quoddy Bay, LLC) 37. Quebec City, QC : 0.5 Bcfd (Project Rabaska - Enbridge/Gaz Met/Gaz de France) 38. Lázaro Cárdenas, MX : 0.5 Bcfd (Tractebel/Repsol) 39. Rivière-du- Loup, QC: 0.5 Bcfd (Cacouna Energy – TransCanada/PetroCanada) 40. St. Helens, OR: 0.7 Bcfd (Port Westward LNG LLC) 41. Puerto Libertad, MX: 1.3 Bcfd (Sonora Pacific LNG) 42. Offshore Boston, MA: 0.8 Bcfd (Northeast Gateway – Excelerate Energy) 43. Kitimat, BC: 0.34 Bcfd (Galveston LNG) 44. Prince Rupert, BC: 0.30 Bcfd (WestPac Terminals) 45. Goldboro, NS 1.0 Bcfd (Keltic Petrochemicals) Existing and Proposed North American LNG Terminals September 2004 FERC Office of Energy Projects A C 1 3 5 2 4 34 8 29 15 6 26 30 10 20 9 28 23 22 35 37 36 38 21 31 32 12 25 11 13 17 14 B 33 27 7 40 19 16 39 24 18 D 41 US Jurisdiction FERC US Coast Guard 42 44 43 *US pipeline approved; LNG terminal pending in Bahamas 45

8. FERC Office of Energy Projects 8 Maximum LNG Deliverability Growth

9. FERC Office of Energy Projects 9 US Natural Gas Balance

10. FERC Office of Energy Projects 10 LNG Siting Processes There are two FERC processes for siting LNG terminals: FERC Traditional Review Process Pre-Filing Process

11. LNG Review Process Cryogenic Design & Safety Review Public Meeting & Public Comment Scoping Meetings & Site Visit Interventions / Protests Notice of Application Authorization / Denial Technical Conference DEIS FEIS Notice of Intent Safety and Engineering Data Requests / Analysis & Agency Coordination FERC 11

12. FERC Office of Energy Projects 12 Benefits of Pre-Filing More interactive NEPA process, no shortcuts Earlier, more direct involvement by FERC, other agencies, landowners Goal of “no surprises” Time savings realized only if we are working together with stakeholders FERC staff is an advocate of the Process, not the Project!

13. FERC Office of Energy Projects 13 There Are Opportunities for Public Involvement The FERC Process: Issue Notice of the Application Project Sponsor Sends Landowner Notification Package Issue Notice of Intent to Prepare the NEPA Document (i.e., scoping) Hold Scoping Meetings Public Input: File an Intervention; register for e-subscription Contact the project sponsor w/questions, concerns; contact FERC Send letters expressing concerns about environmental impact Attend scoping meetings

14. FERC Office of Energy Projects 14 There Are Opportunities for Public Involvement The FERC Process: Issue Notice of Availability of the DEIS Hold Public Meetings on DEIS Issue a Commission Order Public Input: File comments on the adequacy of DEIS Attend public meetings to give comments on DEIS Interveners can file a request for Rehearing of a Commission Order

15. FERC Office of Energy Projects 15 LNG Siting Issues Safety Takeaway Capacity Local acceptance Federal and State approvals

16. FERC Office of Energy Projects 16 Recent Events ABS Study Skikda Accident Reorganization for Safety Fire Marshal Interaction Three “Faces” of LNG Regional Planning

17. FERC Office of Energy Projects 17 Recent Events Three “Faces” of LNG How you get your LNG news affects your perception –Popular Press (e.g., Newspapers) –Trade Press –FERC Filings and Issuances

18. FERC Office of Energy Projects 18 A number of studies gave rise to controversy FERC contracted with ABSG to identify models Gives FERC the ability to do more site specific modeling and reviews in EISs Provides a solid theoretical foundation from which to build on as new information becomes available Assumptions in the study are conservative Recent Events The FERC Model

19. FERC Office of Energy Projects 19 Recent Events Skikda Accident Preliminary findings: –Initial explosion of high-pressure steam boiler caused by hydrocarbon leakage into combustion air fan –Larger secondary explosion of the hydrocarbon vapors in the immediate vicinity. –Consequences: Loss of life and plant property March 13 – 15, 2004 – FERC / DOE Team inspected accident site and interviewed Sonatrach. FERC / DOE Report addresses team review.

20. FERC Office of Energy Projects 20 New LNG Branch at FERC to focus on and enhance LNG review, inspection programs Provide for Seamless Review of LNG Facilities –Interagency Agreement on Safety and Security Application of FERC Model for LNG Tanker Release Consequences RFP out for review of the LNG Program Recent Events Reorganization for Safety

21. FERC Office of Energy Projects 21 National Association of State Fire Marshals (NASFM) –The Partnership for Excellence in Pipeline Safety is authorized under a Cooperative Agreement between the NASFM and the OPS –NASFM will mobilize America’s emergency responders and the communities they serve to help prevent, safely mitigate and investigate pipeline incidents LNG module being developed –www.safepipelines.org Recent Events Fire Marshal Interaction

22. FERC Office of Energy Projects 22 Recent Events Regional Planning FERC’s processing of LNG proposals eliminates the need for regional planning of LNG –Our review process addresses the public interest –We evaluate the proposals, giving regulatory certainty to all involved stakeholders. –Efficient and timely decisions, with proper consideration given to environmental concerns, including examinations of alternative sites, allows the market to pick the appropriate LNG facilities.

23. FERC Office of Energy Projects 23 Outlook/Issues Associated with LNG Development States attempting to assert economic jurisdiction in the post- Hackberry environment Public safety information/Irrational Risk Standard Interchangeability Congressional Legislation