1. Supplying California with Clean, Reliable Natural Gas
Cabrillo Port
Supplying California with Clean, Reliable Natural Gas

2. Cabrillo Port
Who Is BHP Billiton?

3. BHP Billiton – Diversified With a Global Reach
Petroleum
Aluminium
Base Metals
Carbon Steel Materials
Diamonds & Spec Prod
Energy Coal
Stainless Steel Materials

4. BHP Billiton Snapshot
BHP Billiton LNG, Inc. is a Subsidiary of BHP Billiton, the World's Largest Diversified Resources Company
35,000 employees working in more than 100 operations in approximately 20 countries
Market Cap: U.S. $95 Billion (October ‘05)
Industry or near industry leader
Aluminum
Energy coal and metallurgical coal
Copper
Ferro-alloys
Iron Ore and titanium minerals
Substantial Interest
Oil
Gas
Liquefied natural gas
Nickel
Diamonds
Silver

5. BHP Billiton Health, Safety, Environment and Community Policy
“We commit to continual improvement in our performance, efficient use of natural resources and aspire to zero harm to people and the environment”

6. Cabrillo Port
Project Description

7. Project Overview Import LNG from Australia
Operate a LNG Floating Storage and Re-gasification Unit (FSRU) Approximately 21 miles Offshore Oxnard
Subsea Natural Gas Pipeline Linking into the Existing SoCalGas System
Deliver about 800 Million Cubic Feet of Natural Gas Daily, About 13% of California’s Average Daily Natural Gas Consumption

8. Project Benefits Increases California’s Natural Gas Supply Diversity
Reduces California’s Reliance upon Interstate Pipeline Systems
Reduces California’s Reliance on Diminishing Domestic Resources
Supply Diversity and Capacity Should Moderate Prices
Safe & Proven Technology
Smallest Environmental Footprint Possible
Creates California-Based, Permanent Jobs
Long-term Investment and Involvement in Local Communities

9. Cabrillo Port Site Closest land fall 14.04 miles from Cabrillo Port
Almost 17 miles from Cabrillo Port to Pt. Dume
Marine Sanctuary Boundary
12.43 miles from Cabrillo Port
Cabrillo Port
Over 21 miles from the city
of Oxnard and will not be
visible to city residents
Marine Sanctuary Boundaries Northwest mi., to South
Platform Grace

10. Why Choose This Site?
Access to SoCalGas Company’s Existing Transmission & Distribution Networks
SoCalGas Pipeline Routed Predominantly Through Farmland
The Remote Offshore Site
Provides an additional layer of security and safety
Ability to locate facility out of critical view shed
Minimal environmental footprint
Minimal societal impact

11. Natural Gas Pipeline Landfall
SoCalGas Pipeline
HDD pipelines (avoiding beach)
Twin 24” gas pipelines connecting Cabrillo Port and the SoCal system will be installed underground using Horizontal Directional Drilling (HDD) avoiding any impact on the beach
FSRU located miles offshore

12. Visual Simulation – Typical Conditions
Photo simulation of the FSRU miles offshore, under typical marine layer conditions.
Photo taken from Hwy FSRU is miles offshore

13. Photo taken from Hwy 1 FSRU is 14.04 miles offshore
Visual Simulation – Clear Conditions
Photo simulation of the FSRU miles offshore, under clear sky conditions.
Photo taken from Hwy FSRU is miles offshore

14. Visual Simulation – Marine Layer Conditions
Existing view to the west toward the Channel Islands, from California State Highway 1, 1.25 miles north of Leo Carrillo Beach, under heavy marine layer conditions, with visibility of less than one mile.
Photo taken from Hwy FSRU is miles offshore
Visibility in photo is less than 1 mile

15. Photo taken from Hwy 1 FSRU is 14.04 miles offshore
Visual Simulation – Night
Photo simulation of the FSRU miles offshore, under nighttime conditions.
Photo taken from Hwy FSRU is miles offshore

16. Overview of Why California Needs LNG
Demand for Natural Gas is Growing in CA, Yet Domestic Supplies are Decreasing
California already imports 85% of the natural gas it currently needs
Control
LNG delivered directly into the existing SoCalGas Company’s system will serve CA market
Less opportunity for market manipulation
Economics
A long-term dedicated gas supply will moderate gas prices and help prevent price spikes or outages
Supply Diversification
All current basins that supply CA can supply multiple markets
Environmental Benefits
Does not negatively impact CA’s commitment to renewable sources
Cleaner burning natural gas is the fossil fuel of choice
Control
Environmental
Regulations possibly more restrictive than in Baja
Safety
USCG would have jurisdiction over ships and offshore LNG facilities
CPUC/FERC would have jurisdiction over onshore LNG facilities
Market
Government could have more oversight
Less opportunity for market manipulation
Economics
LNG should lower overall price but, more importantly dampen potential price spikes
Supply diversification
End of pipeline position subjects CA to price “whip effect” because intermediary markets have opportunity to consume gas before it reaches CA
Even Canadian and potential Alaskan supply will have multiple market options

17. U.S. Projected Natural Gas Demand/Supply Balance
Source: U.S. Energy Information Administration

18. State & Federal Regulatory Review
Cabrillo Port
State & Federal Regulatory Review

19. Environmental Review Process

20. Primary Regulators 4 Primary Agencies Federal and State Regulators
U.S. Department of Homeland Security (U.S. Coast Guard)
Deepwater Ports License
U.S. EPA Region 9 (California)
Air Quality and Emissions Permit
California State Lands Commission
Land Lease
California Coastal Commission
CDP, Consistency Determination
Other Federal Regulators
U.S. Department of Transportation
U.S. Maritime Administration
Other State Regulators
California Coastal Conservancy
California Public Utilities Commission
Control
Environmental
Regulations possibly more restrictive than in Baja
Safety
USCG would have jurisdiction over ships and offshore LNG facilities
CPUC/FERC would have jurisdiction over onshore LNG facilities
Market
Government could have more oversight
Less opportunity for market manipulation
Economics
LNG should lower overall price but, more importantly dampen potential price spikes
Supply diversification
End of pipeline position subjects CA to price “whip effect” because intermediary markets have opportunity to consume gas before it reaches CA
Even Canadian and potential Alaskan supply will have multiple market options

21. Cabrillo Port
Technology & Safety

22. Safety, Security and Verification
All components are engineered to the highest safety standards and the gas operations systems are designed to be “fail safe” without human intervention
LNG carriers’ and the LNG terminal’s security plans are approved and regularly monitored by the U.S. Dept. of Homeland Security’s U.S. Coast Guard
The remoteness of Cabrillo Port provides an additional layer security and safety
Major classification societies which approve the design of ships and offshore structures have established Classification Rules for Offshore LNG terminals
One of these societies will independently examine and verify the design and construction of Cabrillo Port
The proposed development will be engineered to the highest standards including formal quantified risk analysis techniques ensuring the development is safe for people and for the environment.
Security plans for LNG carriers are administered by the Department of Homeland Security. A specific security plan for Cabrillo Port has been prepared in collaboration with the authorities.
Major classification societies have already issued class rules for offshore LNG terminals.
In that regard, as part of the classification/ verification process for the development, all engineering aspects of the Cabrillo Port would be subject to independent third party verification providing another layer of assurance that the designs are safe and sound.
Class Rules for Offshore LNG Terminals from the 3 largest Classification Societies

23. Development Components
“ A combination of proven technology components”
Center Road Station Tie-in
36” 15 Mile Onshore Pipeline
Oxnard
SoCal Tie-in
Directionally Drilled Section Under Beach
Malibu
Floating Storage & Regasification Unit
BHP Billiton’s proposed Cabrillo Port LNG Terminal, offshore Ventura county consists of a permanently moored Floating Storage & Re-gasification Unit (FSRU). This unit will transfer LNG from traditional LNG carriers, store the LNG in Moss type tanks, be equipped with a re-gasification plant and feed gas through a dual 24" pipeline export system to shore where it will tie into SoCal’s existing gas pipeline infrastructure.
The FSRU is a combination of proven technology components.
2 X 24” 20 Mile Subsea Pipeline
FSRU in 2,850’WD

24. Safety of Location
√ Cabrillo Port’s Remote Location Minimizes Perceived Safety Concerns
√ Cabrillo Port is Over 21 Miles from the Nearest Heavily Populated Area – Oxnard, CA
√ Cabrillo Port is Over 14 Miles from the Nearest Landfall
√ Cabrillo Port is Situated in an Area Known for Relatively Mild Weather, Tidal and Geologic Activity
√ Cabrillo Port is Situated Miles Beyond the International Shipping Lanes
√ Cabrillo Port is Miles from the Channel Islands Marine Sanctuary

25. Floating Storage & Regasification Unit Safety
 Single Point Mooring
 Side by side LNG transfer
 Moss spherical LNG storage tanks
 LNG regasification
Proven Technologies
The FSRU is permanently moored to the sea bed.
It can not be disconnected or “relocated” without major construction equipment. Such an operation would take weeks.
The components that make up the FSRU are:
The Single Point Mooring which keeps the unit in position but allows it to “weathervane” freely.
The loading arms system which allows the LNG transfer from the carriers onto the FSRU with the side-by-side configuration.
The Moss spherical aluminum insulated storage tanks to store the LNG.
The Submerged Combustion Vaporizers (SCV) which warm the LNG, returning it to its normal gaseous state at ambient temperature.
The gas is transported to the SoCal gas grid on shore via two 24” gas pipelines.
Storage Capacity = 273,000 m3
Length = 928ft
Displacement ~ 210,000 DWT
Anticipated Normal Throughput = 800 MMSCFD
Design Throughput = 1,500 MMSCFD
Permanently Turret Moored in 2,850’ wd.

26. BHP Billiton Offshore Floating Expertise
BHP Billiton has been a pioneer in floating technology with a total of 9 floating units (6 FPSO, 1 FSU & 2 FSO) since 1985
BHP Billiton has 20 years experience of successfully & safely marinizing far more complex hydrocarbon processing facilities on floating production units
Buffalo FPSO –
Converted 90,000 t dwt tanker
1998 Modec Venture I –
En route to ZOCA (Elang/K/KN)
1986 –
JABIRU FPSO –
Converted 150,000 t dwt tanker
1991- SKUA FPSO –
Converted 150,000 t dwt tanker
1994 –
GRIFFIN FPSO
Newbuild 100,000 t
The know how required to combine the kind of components proposed for Cabrillo Port in an offshore unit is well established and proven.
BHP Billiton was a pioneer in developing such offshore floating technology and is well experienced.
Both the industry in general and BHP Billiton in particular have been involved in far more complex offshore units than what is being proposed for Cabrillo Port.

27. Deepwater Pipeline Technology
Deepwater pipeline systems are used throughout the Gulf of Mexico and other locations worldwide
Two 24” pipelines provide redundancy which increases reliability
The pipelines are designed for fail-safe shut-in and to withstand earthquakes
Cabrillo Port Pipeline Route & Bathymetry

28. Pipeline Safety
√ BHPB will Operate the Subsea Pipeline from the FSRU to SoCalGas Connection Point
√ Cabrillo Port will Utilize an Accurate, Proven, “Mass Balance” Leak Detection System
√ Cabrillo Port will Be Subject to Annual Pipeline Inspections by SoCalGas Using Intelligent Pigging Technology
√ SoCalGas Company Owns and Operates the Existing Pipelines Into Which FSRU Gas Supplies will Link
√ Cabrillo Port will Provide Natural Gas that Meets or Exceeds California Quality Standards which are Among the Most Exacting in the Nation