LNG Briefing

LNG: Regulatory and Regional Considerations The Energy Councils LNG/CNG Workshop Biloxi, Mississippi April 8, 2005 Robert Cupina, Deputy Director, Office of Energy Projects FERC FERC Helping Markets Work Effective Adequate Infrastructure Competitive Market Rules OMTR OEP Market FERC Market Oversight OMOI 2 Office of Energy FERC FERC Organizational Structure 3 Office of Energy

FERC 4 Major Interstate and Canadian Pipelines and Gas Production Areas Office of Energy FERC Natural Gas Act NATURAL GAS ACT Section 7(c) Interstate Case Specific Section 3 Import/Expor t Blanket Authority Case Specific Automatic Prior Notice 5 Office of Energy

FERC Natural Gas Act Case Specific Section 7(c) and 3 Conduct a full review of proposal including engineering, rate, accounting, and market analysis Conduct an environmental review by preparing an Environmental Assessment or an Environmental Impact Statement 6 Office of Energy FERC Major Pipeline Projects Certificated (MMcf/d) January 2002 to March 2005 Georgia Straits (96) 6. CIG (282,92) 7. CIG (118) 8. TransColorado (125) 9. WIC (116) Northwest (162,113) Northwest (224) Tuscarora (96)

WBI (80) Northwest (191) R rn e K 6) (88 7 9 Questar (102) Kern River (282) 1. Algonquin (285) 2. Islander East (285) 3. Iroquois (85) 4. Columbia (135,270) 5. Algonquin (140) 6. Transcontinental (105) r ive 8 Iroquois(70) ANR (220,107,143) Cheyenne

Plains (560,170) 6 El Paso (140) Transwestern (375) North Baja (500) 6 3 4 1 2 5 Cove Point (445) SCG Pipeline (190) Discovery (150) Trunkline (200) 7 TETCO(223) TETCO(250) Greenbrier (600) East Tennessee (510) Transco (323) TETCO (197) El Paso (320)

17.1 BCF/D Total 2,911 Miles NFS/DTI (150) Petal (600) Trunkline(1,500) Cheniere Sabine (2,600) Tennessee (320) Southern (330) Calypso (832) Ocean Express (842) Office of Energy FERC Major Pipeline Projects Pending (MMcf/d) March 2005 Rendezvous (300) WIC (350) TransColorado (300) El Paso (502)

17.7 BCF/D Total 930 Miles 8 Entrega (EnCana) (1,500) Algonquin BG LNG (500) Northern Border (Chicago III) (130) Mill River (800) Logan Lateral (Texas Eastern) (900) CIG (105) CenterPoint(113) Golden Dominion Pass San Patricio Southern (2,000) McMoRan (200) (1,000) (1,500) Cheniere Corpus Christi Compass Pearl

(2,600) Vista Crossing Pass Del Sol (2,000) (1,000) (1,100) Seafarer Pipeline (El Paso) (800) Office of Energy FERC Storage Projects (Capacity in Bcf) March 2005 Wyckoff (6.0) SemGas (5.5) KM (6.5) Bluewater (27.0) Dominion (9.4) Dominion (5.6) Texas Gas (8.2) Copper Eagle (3.2) Certificated Since 6/1/01 Currently Pending On The Horizon 9

Seneca (0.8) Tennessee (5.0) Saltville (5.8) Columbia (12.4) Natural (10.0) Port Barre (10.5) County Line (6.0) CenterPoint (15.0) Freebird (6.1) Sabine Caledonia (11.7) (40.0) Natural (10.7) Falcon MoBay (20.0) EnCana (8.0) Falcon Hill-Lake (3.0) SG Resources (12.0) Starks (19.2) Petal (8.0) Copiah (3.3) Liberty (17.0) Petal (5.0) Gulf South (18.5) Pine Prarie (24.0) Office of Energy FERC

Balancing Interests People Like... 10 But TheyAlsoWant... DueProcess ExpeditedProcess Smaller Government EffectiveGovernment Less Regulation Assuranceof Fair Markets Market-dictatedOutcomes ProtectionfromMarket Dysfunctions, UnexpectedRisk, andUnjust Rates Protectionfor theEnvironment and Property Interests AmpleSuppliesof Low-cost Energy Office of Energy Environmental Review (Traditional Process) Notice of Intent

FERC Public Interest Review Review Notice of Application Process Scoping Meetings & Site Visit Interventions LNG Protests Cryogenic Design & Data Requests Safety Review Data Requests Analysis Agency Coordination Analysis Tech Conference (Optional) Preliminary Determination (Optional)

DEIS FEIS Authorization / Rejection FERC Traditional vs. NEPA PreFiling Process Announce Open Season Announce Open Season Develo File p Prepare Resource Traditional - Applicant At Study Reports FERC Corrido r Conduc Issue Traditional - FERC t Draft Scoping EIS Develop

Study Prepare Resource Corridor Reports File At FERC Conduc t Scoping 0 1 2 3 4 5 6 7 28 12 Review Draft Resource Reports & Prepare DEIS Issue Issue Final Order EIS NEPA Pre-Filing - Applicant Issue Draft EIS Issue Issue Final Order EIS NEPA Pre-Filing - FERC 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 (months)

Office of Energy FERC NPC Study Align the conflicting policies - Policies that encourage consumption - Policies that inhibit gas supply 13 Office of Energy FERC LNG Two Points Natural gas is the economic/environmental fuel of choice. 96% of natural gas reserves are outside North America. 14 Office of Energy FERC How Much Natural Gas Is Out There? Africa 7%

Middle East 42% Asia & Oceania 7% North America 4% Central & South America 4% Western Europe 3% Eastern Europe & Former U.S.S.R. 33% Total World Gas Reserves as of 1/1/03: 6,127 Trillion Cubic Feet 15 Source: EIA, World Oil Office of Energy FERC Where Are the Export Facilities? Global LNG Supply Facilities Global LNG Supply Existing Under

Construction Proposed NORTH AMERICA RESERVES 4% WORLD PROVED RESERVES 2003: 6,127 TCF Source: Cedigaz, NPC 16 LNG supply growing Multiple LNG supply proposals announced Long term LNG supply outlook Office of Energy FERC Liquefaction and Storage Facility Office of Energy Dock Natural Gas Production 17 Storage and Vaporization

Facility Dock Natural Gas Pipelines LNG Supply Stream -- From Production to Distribution FERC Economic Oversight Access to LNG Terminal Liquid to Vapor Flow LNG Buyers B A LNG Suppliers B Open Access At Delivery of Vapor into Interstate Pipeline System 18 A Open Access At Delivery of Liquid to Terminal

Office of Energy FERC Existing, Proposed and Potential North American LNG Terminals 49 48 46 47 36 41 23 37 33 43 18 A 38 10 21 34 15 40 B 20 27 11 28 3552 C 7 6 25D,12 22 24 14 125,42 31 1 30 29 13 19 17 E

32 9 26 39 8 51 53 55 54 As of March 25, 2005 16 3 4 US Jurisdiction FERC US Coast Guard * US pipeline approved; LNG terminal pending in Bahamas ** These projects have been approved by the Mexican and Canadian authorities 19 45 50 44 CONSTRUCTED A. Everett, MA : 1.035 Bcfd (Tractebel - DOMAC) B. Cove Point, MD : 1.0 Bcfd (Dominion - Cove Point LNG) C. Elba Island, GA : 0.68 Bcfd (El Paso - Southern LNG) D. Lake Charles, LA : 1.0 Bcfd (Southern Union - Trunkline LNG)

E. Gulf of Mexico: 0.5 Bcfd, (Gulf Gateway Energy Bridge - Excelerate Energy) APPROVED BY FERC 1. Lake Charles, LA: 1.1 Bcfd (Southern Union - Trunkline LNG) 2. Hackberry, LA : 1.5 Bcfd, (Sempra Energy) 3. Bahamas : 0.84 Bcfd, (AES Ocean Express)* 4. Bahamas : 0.83 Bcfd, (Calypso Tractebel)* 5. Freeport, TX : 1.5 Bcfd, (Cheniere/Freeport LNG Dev.) 6. Sabine, LA : 2.6 Bcfd (Cheniere LNG) 7. Elba Island, GA: 0.54 Bcfd (El Paso - Southern LNG) APPROVED BY MARAD/COAST GUARD 8. Port Pelican: 1.6 Bcfd, (Chevron Texaco) 9. Louisiana Offshore : 1.0 Bcfd (Gulf Landing - Shell) PROPOSED TO FERC 10. Fall River, MA : 0.8 Bcfd, (Weaver's Cove Energy/Hess LNG) 11. Long Beach, CA : 0.7 Bcfd, (Mitsubishi/ConocoPhillips - Sound Energy Solutions 12. Corpus Christi, TX : 2.6 Bcfd, (Cheniere LNG) 13. Corpus Christi, TX : 1.0 Bcfd (Vista Del Sol - ExxonMobil) 14. Sabine, TX : 1.0 Bcfd (Golden Pass - ExxonMobil) 15. Logan Township, NJ : 1.2 Bcfd (Crown Landing LNG - BP) 16. Bahamas : 0.5 Bcfd, (Seafarer - El Paso/FPL ) 17. Corpus Christi, TX: 1.0 Bcfd (Ingleside Energy - Occidental Energy Ventures) 18. Providence, RI : 0.5 Bcfd (Keyspan & BG LNG) 19. Port Arthur, TX: 1.5 Bcfd (Sempra) 20. Cove Point, MD : 0.8 Bcfd (Dominion) 21. LI Sound, NY: 1.0 Bcfd (Broadwater Energy - TransCanada/Shell) 22. Pascagoula, MS: 1.0 Bcfd (Gulf LNG Energy LLC) 23. Bradwood, OR: 1.0 Bcfd (Northern Star LNG - Northern Star Natural Gas LLC) 24. Pascagoula, MS: 1.3 Bcfd (Casotte Landing - ChevronTexaco) 25. Cameron, LA: 3.3 Bcfd (Creole Trail LNG - Cheniere LNG) 26. Port Lavaca, TX: 1.0 Bcfd (Calhoun LNG - Gulf Coast LNG Partners) PROPOSED TO MARAD/COAST GUARD 27. California Offshore: 1.5 Bcfd (Cabrillo Port - BHP Billiton) 28. So. California Offshore : 0.5 Bcfd, (Crystal Energy) 29. Louisiana Offshore : 1.0 Bcfd (Main Pass McMoRan Exp.)

30. Gulf of Mexico: 1.0 Bcfd (Compass Port - ConocoPhillips) 31. Gulf of Mexico: 2.8 Bcfd (Pearl Crossing - ExxonMobil) 32. Gulf of Mexico: 1.5 Bcfd (Beacon Port Clean Energy Terminal - ConocoPhillips) POTENTIAL SITES IDENTIFIED BY PROJECT SPONSORS 33. Coos Bay, OR: 0.13 Bcfd, (Energy Projects Development) 34. Somerset, MA: 0.65 Bcfd (Somerset LNG) 35. California - Offshore: 0.75 Bcfd, (Chevron Texaco) 36. Pleasant Point, ME : 0.5 Bcf/d (Quoddy Bay, LLC) 37. St. Helens, OR: 0.7 Bcfd (Port Westward LNG LLC) 38. Offshore Boston, MA: 0.8 Bcfd (Northeast Gateway - Excelerate Energy) 39. Galveston, TX: 1.2 Bcfd (Pelican Island - BP) 40. Philadelphia, PA: 0.6 Bcfd (Freedom Energy Center - PGW) 41. Astoria, OR: 1.0 Bcfd (Skipanon LNG - Calpine) 42. Freeport, TX: 1.5 Bcfd, (Cheniere/Freeport LNG Dev. - Expansion) 43. Offshore Boston, MA: 0.4 Bcfd (Neptune LNG - Tractebel) CANADIAN APPROVED AND POTENTIAL TERMINALS 44. St. John, NB : 1.0 Bcfd, (Canaport - Irving Oil) 45. Point Tupper, NS 1.0 Bcf/d (Bear Head LNG - Anadarko) 46. Quebec City, QC : 0.5 Bcfd (Project Rabaska - Enbridge/Gaz Met/Gaz de France 47. Rivire-du- Loup, QC: 0.5 Bcfd (Cacouna Energy - TransCanada/PetroCanada) 48. Kitimat, BC: 0.61 Bcfd (Galveston LNG) 49. Prince Rupert, BC: 0.30 Bcfd (WestPac Terminals) 50. Goldboro, NS 1.0 Bcfd (Keltic Petrochemicals) MEXICAN APPROVED AND POTENTIAL TERMINALS 51. Altamira, Tamulipas : 0.7 Bcfd, (Shell/Total/Mitsui)** 52. Baja California, MX : 1.0 Bcfd, (Sempra & Shell)** 53. Baja California - Offshore : 1.4 Bcfd, (Chevron Texaco) 54. Lzaro Crdenas, MX : 0.5 Bcfd (Tractebel/Repsol) 55. Puerto Libertad, MX: 1.3 Bcfd (Sonora Pacific LNG) Office of Energy North East LNG Terminals Legend: Existing Terminal Approved Terminal

Pleasant Point, ME (36) Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal Everett, MA (A) Offshore Boston - Excelerate (38) Offshore Boston - Tractebel (43) Providence, RI (18) Fall River, MA (10) March 31, 2005 20 Somerset, MA (34) Office of Energy Mid-Atlantic LNG Terminals Long Island Sound, NY (21) Philadelphia, PA (40) Logan Township, NJ (15) Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Cove Point, MD (B/20)

March 31, 2005 21 Working on FEIS Potential Terminal Office of Energy South East LNG Terminals Legend: Existing Terminal Elba Island, GA (C/7) Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal Bahamas (3/4/16) (Pipelines only) March 31, 2005 22 Office of Energy Gulf Coast LNG Terminals Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing

Proposed Terminal: Filed Working on DEIS Pascagoula, MS (22/24) Working on FEIS Potential Terminal Lake Charles, LA (D/1) Port Arthur (19) Sabine Pass, LA (6) Cameron (25) Golden Pass (14) Galveston, TX (39) Freeport, TX (5/42) Port Lavaca, TX (26) Corpus Christi, TX (12) Vista Del Sol (13) Ingleside LNG (17) March 31, 2005 23 Hackberry (2) Freeport McMoran (29) Compass Port (30) Gulf Landing (9) Pearl Crossing (31) Beacon Port

Gulf Gateway (E) (32) Port Pelican (8) Office of Energy Southwest LNG Terminals Legend: Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal Long Beach, CA (11) California Offshore (27/28/35) BHP Billiton (27) Crystal Energy (28) March 31, 2005 24 Chevron Texaco (35) Office of Energy FERC North West LNG Terminals Astoria, OR (41) Bradwood, OR, Northern Star(23) Legend:

Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing St. Helens, OR (37) Proposed Terminal: Filed Working on DEIS Working on FEIS Potential Terminal Coos Bay, OR (33) March 31, 2005 25 Office Office of of Energy Energy FERC LNG Properties and Safety LNG is natural gas that in its liquid state at -259 Fahrenheit - it is commonly stored and shipped at slightly above atmospheric pressure. LNG is odorless, colorless, non-toxic - it neither explodes nor burns as a liquid. LNG vapors are flammable only in concentrations of 5% to 15% with air and will not explode in an unconfined environment - the ignition temperature is more than 500 Fahrenheit higher than gasoline. In the past 40 years there have been more than 33,000 LNG ship voyages without a significant

accident or cargo spillage. 26 Office of Energy FERC LNG Terminal Siting Issues Safety Take Away Capacity Local acceptance Federal and State approvals 27 Office of Energy FERC Opportunities for Public Involvement The FERC Process: We Issue Notice of the Application Project Sponsor Sends Landowner Notification Package SCOPING = We Issue Notice of Intent to Prepare the NEPA Document Public Meeting(s) 28

Public Input: File an Intervention Contact the project sponsor w/questions, concerns; contact FERC Send letters expressing concerns about environmental impact Attend scoping meetings Office of Energy FERC Opportunities for Public Involvement The FERC Process: Issue Notice of Availability of the DEIS Public Meetings on DEIS Issue a Commission Order 29 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 Office of Energy FERC Recent Events ABS Study Skikda Accident Reorganization for Safety Fire Marshal Interaction Sandia Study Regional Planning 30 Office of Energy FERC Outlook/Issues Associated with LNG Development States are attempting to assert economic jurisdiction in the post-Hackberry environment. Disinformation about safety. Legislative/Judicial Action 31 Office of Energy FERC US Natural Gas Balance

100 V o lu m e ( B c f p e r d a y ) 90 80 70 60 50 40 30 20 10 0 00 01 02 03 04 05 06 07 08 09 10

11 12 13 14 15 16 17 18 -10 Years (beginning in 2000) 32 Total Production Canada Existing Terminals Approved Terminals (FERC & Coast Guard) Proposed and Planned Terminals (FERC & Coast Guard) Net Exports to Mexico Alaska (to Lower 48)

Demand - US Office of Energy 19 20

Recently Viewed Presentations

  • IPPC

    IPPC

    (Article 1 of IPPC) Scope of the IPPC International cooperation in the protection of plants and plant products from harmful pests plants: agricultural plants, forests and wild flora plant pests: invertebrates, diseases and weeds harm: includes indirect effects such as...
  • Introduction - Computer Science

    Introduction - Computer Science

    Inductive bias: set of assumptions a learner uses to predict the target value for previously unseen inputs. This is the same as modeling or choosing a target hypothesis class. Types of inductive bias. Occam's razor.
  • Angles - primaryresources.co.uk

    Angles - primaryresources.co.uk

    Right angles are 90o. Acute angles are less than 90o. Obtuse angles are more than 90o but less than 180o. Reflex angles are more than 180o. Our objectives: To be able to identify, estimate, measure and order acute and obtuse...
  • Transistors as Digital Switch - erickson.academic.wlu.edu

    Transistors as Digital Switch - erickson.academic.wlu.edu

    Operation in Saturation and Cutoff. Smith pg 175 is a better figure. Simpson has a good fig too in sec 5.10
  • Nursing Theorist Betty Neuman - Rebekkah McConnell, RN

    Nursing Theorist Betty Neuman - Rebekkah McConnell, RN

    Betty Neuman developed The System's Model by incorporating from several other theorist not limited to Lararus, Selyl, Von Barlatanfy(1968), and from the Gestalt Theory (Pearls 1973) (Alligood & Tomey, 2010). Also, drawing from her own beliefs and clinical nursing experiences,...
  • Part 2: Textile/Apparel Building Blocks

    Part 2: Textile/Apparel Building Blocks

    Fabric Design and Construction. Two forms of design. Structural Design "Building in" texture or interest during manufacturing process. Weaving and knitting most common. Applied Design. Adding color, pattern, or other features to the structural design. Printing on fabric
  • Gresham and Defoe (underwriters): The Origins of London ...

    Gresham and Defoe (underwriters): The Origins of London ...

    Gresham and Defoe (underwriters):The Origins of London Marine Insurance Dr Adrian Leonard, Affiliated Researcher, Centre for Financial History, University of Cambridge. Marine insurance is a financial transaction designed to reduce by sharing or to transfer the risk of economic loss...
  • Soft Gelatin Capsules - KSU Faculty

    Soft Gelatin Capsules - KSU Faculty

    Soft Gelatin Capsules. Definition: Soft Gelatin Capsules are one-piece forms that encase a predetermined dose of liquid or semi liquid fill. Filled and hermetically sealed in a single operation