# Presentation: 684404

## Outlook for North AmericaLNG Terminal Growth 

**Jeff Wright, Chief**
**Energy Infrastructure Policy Group**
**Office of Energy Projects**
**Federal Energy Regulatory Commission**
**Houston, Texas**
**May 18, 2006**

- Platts 5th Annual
- LNG Conference

## LNG – Two Points

**  ****Natural gas is the environmental fuel of choice.**

**  ****96% of natural gas reserves are outside North America.**

## U.S. Needs All Sourcesto Meet Gas Demand

- Source:  EIA, EEA, FERC

**NET PIPELINE IMPORTS**

**85%**

**64%**

**14%**

**7%**

**LNG IMPORTS**

**24%**

**1%**

**ALASKAN GAS**

**5%**

**LOWER 48 PRODUCTION**

- Source:  Energy and Environmental Analysis, Ap;ril 2006 Compass

## Current LNG Capacity Underutilized

- Current contracts do not require minimum deliveries
- Terminal owners collect demand charges
- Capacity holders content to pay charges, can divert cargoes to higher-priced markets
- Underutilization does not assure adequate gas supply.

## Events Affecting LNG

- Production capacity is constrained
- Spot cargoes largely not available for US markets
- Unscheduled maintenance affecting production in Australia, Trinidad, Nigeria, Egypt
- Long term buyers have first call on excess production
- Global demand remains strong
- Spain and Far East competing for cargoes
- Commercial and regulatory structures are different than US models
- Logistics can be challenging
- Timing of deliveries must align with existing delivery/sendout program
- Contractual Relationships
- Diversion of cargoes.

## North American LNG Terminals

**A. Everett, MA :  **1.035 Bcfd  (Tractebel - DOMAC)
- 	Total Deliveries: ’04 - 172 Bcf, ’05 - 172 Bcf
**B. Cove Point, MD :  **1.0 Bcfd  (Dominion - Cove Point LNG)
- 	 Total Deliveries: ’04 - 216 Bcf, ’05 - 218 Bcf
**C. Elba Island, GA :  **1.2 Bcfd  (El Paso - Southern LNG)
- 	 Total Deliveries: ’04 - 106 Bcf, ’05 - 132 Bcf
**D. Lake Charles, LA :  **1.5 Bcfd  (Southern Union - Trunkline LNG)
- 	 Total Deliveries: ’04 - 163 Bcf, ’05 - 104 Bcf
**E. Gulf of Mexico:** 0.5 Bcfd,  (Gulf Gateway Energy Bridge - Excelerate Energy)
- 	 Total Deliveries: ’04 - 0 Bcf, ’05 - 5 Bcf

*	**Existing*

*FERC*

- A

- B

- C

- D

- E

- US Jurisdiction
-     FERC
-        US Coast Guard

*Office of Energy Projects*

## U.S. LNG ReceiptsJanuary 2005 - March 2006

- Source:  Office of Fossil Energy, DOE

## Has LNG AffectedU.S. Gas Prices....Yet?

- Source: Office of Fossil Energy, DOE; Platts Gas Daily

## North American LNG Terminals

_**U.S.**_
**1. Lake Charles, LA:**  0.6 Bcfd (Southern Union - Trunkline LNG)*****
**2. Hackberry, LA: **1.5 Bcfd (Cameron LNG - Sempra Energy)
**3. Freeport, TX: ** 1.5 Bcfd,   (Cheniere/Freeport LNG Dev.)
**4. Sabine, LA:  **2.6 Bcfd (Cheniere LNG)
**5. Corpus Christi, TX: **2.6 Bcfd, (Cheniere LNG)
**6. Sabine, TX:  **1.0 Bcfd (Golden Pass - ExxonMobil)
_**CANADA**_
**7. St. John, NB:  **1.0 Bcfd,  (Canaport - Irving Oil)
**9. Point Tupper, NS:  **1.0 Bcf/d  (Bear Head LNG - Anadarko)**
_**MEXICO**_
**9. Altamira, Tamulipas:  **0.7 Bcfd,  (Shell/Total/Mitsui)
**10. Baja California, MX:  **1.0 Bcfd,  (Sempra)

*	**Under Construction*

*FERC*

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- US Jurisdiction
-     FERC
-        US Coast Guard

**     Expansion of an existing facility*
***   Construction suspended*

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*Office of Energy Projects*

## North American LNG Terminals

*	**Approved - Not Under Construction*

**As of February 3, 2006**

*FERC*

- US Jurisdiction
-     FERC
-        US Coast Guard

_**U.S. - FERC**_
**1. ****Corpus Christi, TX :  **1.0 Bcfd (Vista Del Sol - ExxonMobil)
**2. Fall River, MA :** 0.8 Bcfd,  (Weaver's Cove Energy/Hess LNG)
**3. Corpus Christi, TX**:  1.0 Bcfd (Ingleside Energy - Occidental Energy Ventures)
_**U.S. - MARAD/COAST GUARD**_
**4. Port Pelican:** 1.6 Bcfd,  (Chevron Texaco)
**5. ****Louisiana Offshore : ** 1.0 Bcfd (Gulf Landing - Shell)
_**MEXICO**_
**6. Baja California - Offshore :**  1.4 Bcfd,  (Chevron Texaco)

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*Office of Energy Projects*

## North American LNG Terminals

*	**Proposed*

*FERC*

_**PROPOSED TO FERC**_
**1. Long Beach, CA :** 0.7 Bcfd,  (Mitsubishi/ConocoPhillips - Sound Energy Solutions)
**2. Logan Township, NJ :  **1.2 Bcfd (Crown Landing LNG - BP)
**3.**** Port Arthur, TX:**  1.5 Bcfd (Sempra)
**4. Cove Point, MD :  **0.8 Bcfd  (Dominion)*****
**5. LI Sound, NY:  **1.0 Bcfd (Broadwater Energy - TransCanada/Shell)
**6.** **Pascagoula, MS:**  1.0 Bcfd (Gulf LNG Energy LLC)
**7. Bradwood, OR:**  1.0 Bcfd (Northern Star LNG - Northern Star Natural Gas LLC)
**8.** **Pascagoula, MS:**  1.3 Bcfd (Casotte Landing - ChevronTexaco)
**9. Cameron, LA:  **3.3 Bcfd (Creole Trail LNG - Cheniere LNG)
**10. Port Lavaca, TX:  **1.0 Bcfd (Calhoun LNG - Gulf Coast LNG Partners)
**11. Freeport, TX: ** 2.5 Bcfd (Cheniere/Freeport LNG Dev. - Expansion)
**12. Sabine, LA:  **1.4 Bcfd (Cheniere LNG - Expansion)
**13. ****Hackberry, LA: **1.15 Bcfd  (Cameron LNG - Sempra Energy - Expansion)
**14. Pleasant Point, ME:  **0.5 Bcfd  (Quoddy Bay, LLC)
**15. Robbinston, ME:  **0.5 Bcfd (Downeast LNG - Kestrel Energy
**16. Elba Island, GA:  **0.9 Bcfd (El Paso - Southern LNG Expansion)
**17. Baltimore, MD:  **1.5 Bcfd (AES Sparrows Point - AES Corporation)
**18. Coos Bay, OR:  **1.0 Bcfd (Jordan Cove Energy Project)
_**PROPOSED TO MARAD/COAST GUARD**_
**19. California Offshore**: 1.5 Bcfd (Cabrillo Port - BHP Billiton)
**20. So. California Offshore :** 0.5 Bcfd,  (Crystal Energy)
**21. Gulf of Mexico: ** 1.0 Bcfd (Main Pass McMoRan Exp.)
**22. ****Gulf of Mexico:** 1.0 Bcfd (Compass Port - ConocoPhillips)
**23. Gulf of Mexico:  **1.5 Bcfd (Beacon Port Clean Energy Terminal** - **ConocoPhillips)
**24. Offshore Boston, MA:**  0.4 Bcfd (Neptune LNG - Tractebel)
**25. Offshore Boston, MA:**  0.8 Bcfd (Northeast Gateway - Excelerate Energy)
**26. Gulf of Mexico:** 1.4 Bcfd (Bienville LNG** - **TORP Technology)

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- US Jurisdiction
-     FERC
-        US Coast Guard

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*Office of Energy Projects*

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## Gulf LNG Terminals:

**Corpus Christi, TX**

**Lake Charles, LA**

**Port Pelican**

**Freeport, TX**

**Golden Pass **

**Port Lavaca, TX**

**Port Arthur**

**Sabine Pass, LA **

- Too Much???

**Freeport **
**McMoran       **

**Hackberry**

**Gulf Landing **

**Galveston, TX**

**Pascagoula, MS**

**Cameron **

**Beacon**
**Port **

**Gulf Gateway**

**Vista Del Sol                               **

**Ingleside LNG **

**EA**

**EA**

**Compass **
**Port**

**Bienville **

- 	**Legend:**
- 	Existing Terminal
- 	Approved Terminal
- 	Proposed Terminal: Pre-Filing
- 	Proposed Terminal: Filed
- 		Working on DEIS
- 		Working on FEIS
- 	Potential Terminal

## Lessons to be Applied toLNG Terminals(and other gas facilities)

- Geographic diversity is desirable
- Redundant capacity
- Storage of energy supplies can mitigate adverse situations
- Have regulations in place that reduce delays in reconstruction

## Northeast LNG Terminals

**Calais, ME **

**Everett, MA**

**Offshore Boston – **
**Neptune**

**Fall River, MA**

**Offshore Boston – **
**Excelerate **

**Providence, RI Rejected**

**Robbinston, ME **

**Boston, MA – **
**Battery Rock**

**Pleasant Point, ME**

- 	**Legend:**
- 	Existing Terminal
- 	Approved Terminal
- 	Proposed Terminal: Pre-Filing
- 	Proposed Terminal: Filed
- 		Working on DEIS
- 		Working on FEIS
- 	Potential Terminal

## Mid-Atlantic LNG Terminals

**Cove Point, MD**

**Logan Township, NJ **

**Long Island Sound, NY **

**Philadelphia, PA**

**Baltimore, MD**

**Offshore New York –**
**Safe Harbor**

- 	**Legend:**
- 	Existing Terminal
- 	Approved Terminal
- 	Proposed Terminal: Pre-Filing
- 	Proposed Terminal: Filed
- 		Working on DEIS
- 		Working on FEIS
- 	Potential Terminal

## Southeast LNG Terminals

**Elba Island, GA **

**Bahamas **

**(Pipelines only)**

**Offshore Florida **

- 	**Legend:**
- 	Existing Terminal
- 	Approved Terminal
- 	Proposed Terminal: Pre-Filing
- 	Proposed Terminal: Filed
- 		Working on DEIS
- 		Working on FEIS
- 	Potential Terminal

## California LNG Terminals

**Long Beach, CA **

**Chevron Texaco **

**BHP Billiton**

**Crystal Energy**

- 	**Legend:**
- 	Existing Terminal
- 	Approved Terminal
- 	Proposed Terminal: Pre-Filing
- 	Proposed Terminal: Filed
- 		Working on DEIS
- 		Working on FEIS
- 	Potential Terminal

**Ocean Way **

**Pacific Gateway **

**Esperanza Energy**

## Northwest LNG Terminals

**Coos Bay, OR**

**Bradwood, OR **

**Astoria, OR **

**St. Helens, OR**

- 	**Legend:**
- 	Existing Terminal
- 	Approved Terminal
- 	Proposed Terminal: Pre-Filing
- 	Proposed Terminal: Filed
- 		Working on DEIS
- 		Working on FEIS
- 	Potential Terminal

## Conclusions

- U.S. Gas Supply Tight Until 2008
- Watch the Regasifcation/Liquefaction Ratio
- Currently 2:1
- Future?
- Greater Liquefaction Capacity
- Major Increases After 2010
- Increase in U.S. Baseload Terminals