LNG Regulatory Update
2nd Annual Global LNG Outlook
October 27, 2005
Houston, Texas
Jeff C. Wright, Chief
Energy Infrastructure Policy Group
Office of Energy Policy
Federal Energy Regulatory Commission
FERC
Alan Greenspan
Chairman of the Board of Governors
of the Federal Reserve System.
July 20, 2005
“...the current and prospective expansion of U.S. capability to
import liquefied natural gas will help ease longer-term natural gas
stringencies and perhaps bring natural gas prices in the United
States down to world levels.”
June 10, 2003
“...we cannot, on the one hand, encourage the use of
environmentally desirable natural gas in this country while being
conflicted on larger imports of LNG.”
2 Office of Energy Projects
FERC
Energy Policy Act
of 2005 - LNG
• Process coordination
• State and local considerations
• Pre-filing is mandatory
• Hackberry policy is now codified
• Cooperation with Dept. of Defense
3 Office of Energy Projects
FERC
Energy Policy Act
of 2005 - LNG
Process Coordination
• FERC is the exclusive siting authority
and lead agency for processing
• FERC record is the one record upon
which all appeals of Federal actions
are based
• Judicial streamlining
4 Office of Energy Projects
FERC
Energy Policy Act
of 2005 - LNG
State and Local Considerations
• Governor shall appoint a state agency for
consultation
• FERC must consult with this agency
• State may file a safety advisory report and
FERC must review and respond
• State agency may conduct safety
inspections
• FERC order must require an Emergency
Response Plan which includes a cost-
sharing plan
5 Office of Energy Projects
FERC
Energy Policy Act
of 2005 - LNG
Pre-Filing
• Regulations issued on October 7th
• Pre-filing is mandatory for all new
LNG terminals and related facilities
• Mandatory pre-filing for
expansions, if deemed appropriate
• Federal, state and local
consideration/cooperation
6 Office of Energy Projects
FERC
Energy Policy Act
of 2005 - LNG
Hackberry Decision Codified
• FERC cannot deny an application on the
basis that the LNG terminal will not be
open access
– Sunsets on January 1, 2015
• Expansion of an existing LNG terminal
will not result in subsidization of
expansion capacity, degradation of
service or undue discrimination to
existing customers
7 Office of Energy Projects
FERC
Energy Policy Act
of 2005 - LNG
Dept. of Defense
• MOU with Department of Defense
• Concurrence of Secretary of
Defense
8 Office of Energy Projects
FERC
Energy Policy Act
of 2005 - LNG
LNG Forums
• Convene at least three forums within
next year
• Identify and develop best practices for
issues associated with LNG
9 Office of Energy Projects
FERC
Major Pipeline Projects
Pending (MMcf/d)
October 2005
Dominion
(700)
Logan Lateral
Columbia (172) (Texas Eastern)
(900)
Jewell Ridge
Midwestern (East Tennessee)
(120) (235)
Golden Cameron Cypress Pipeline
Florida Gas (Southern Natural) (500)
Pass (160)
(2,000) (1,500)
Dominion Southern McMoRan (1,500)
(200) Compass Pass
Seafarer Pipeline
15.4 BCF/D Total Point Comfort
(1,000) Cheniere
(1,000)
Pearl Crossing (2,000) (El Paso) (800)
879 Miles Creole Trail
(3,300)
Triple-T Extension
(Tennessee) (200)
10 Office of Energy Projects
FERC
Storage Projects
(Capacity in Bcf)
October 2005
SemGas (5.5)
Bluewater
(27.0)
Dominion (9.4)
Unocal Windy Hill Columbia (16.4)
(6.0)
Texas Gas (8.2) Saltville
(5.8)
Columbia (12.4)
Natural (10.0) Port Barre (10.5) County Line (6.0)
Copper Eagle CenterPoint Freebird (6.1)
(3.2) (15.0) Caledonia (11.7)
Natural (10.0) EnCana (8.0)
Falcon MoBay (20.0)
Falcon Worsham-Steed (12.0)
Falcon Hill-Lake (10.4)
Starks (19.2)
Certificated Since 1/1/04
Liberty (17.0)
Currently Pending Petal (5.0)
Pine Prairie (24.0)
On The Horizon
11 Office of Energy Projects
FERC
Existing and Proposed CONSTRUCTED
North American LNG
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)
Terminals E. Gulf of Mexico: 0.5 Bcfd, (Gulf Gateway Energy Bridge - Excelerate Energy)
APPROVED BY FERC
1. Lake Charles, LA: 0.8 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)
8. Corpus Christi, TX: 2.6 Bcfd, (Cheniere LNG)
9. Corpus Christi, TX : 1.0 Bcfd (Vista Del Sol - ExxonMobil)
10. Fall River, MA : 0.8 Bcfd, (Weaver's Cove Energy/Hess LNG)
16 11. Sabine, TX : 1.0 Bcfd (Golden Pass - ExxonMobil)
15 12. Corpus Christi, TX: 1.0 Bcfd (Ingleside Energy - Occidental Energy Ventures)
APPROVED BY MARAD/COAST GUARD
13. Port Pelican: 1.6 Bcfd, (Chevron Texaco)
39 14. Louisiana Offshore : 1.0 Bcfd (Gulf Landing - Shell)
27 A 40 CANADIAN APPROVED TERMINALS
10 15. St. John, NB : 1.0 Bcfd, (Canaport - Irving Oil)
25 16. Point Tupper, NS 1.0 Bcf/d (Bear Head LNG - Anadarko)
21 MEXICAN APPROVED TERMINALS
17. Altamira, Tamulipas : 0.7 Bcfd, (Shell/Total/Mitsui)
B 24 18. Baja California, MX : 1.0 Bcfd, (Sempra)
19. Baja California - Offshore : 1.4 Bcfd, (Chevron Texaco)
PROPOSED TO FERC
20. Long Beach, CA : 0.7 Bcfd, (Mitsubishi/ConocoPhillips - Sound Energy Solutions)
33 21. Logan Township, NJ : 1.2 Bcfd (Crown Landing LNG - BP)
20 22. Bahamas : 0.5 Bcfd, (Seafarer - El Paso/FPL )
34 C 7 23. Port Arthur, TX: 1.5 Bcfd (Sempra)
1918 24. Cove Point, MD : 0.8 Bcfd (Dominion)
22
29 2 26
6,32 25. LI Sound, NY: 1.0 Bcfd (Broadwater Energy - TransCanada/Shell)
5,31 23D 1 28 3 4 26. Pascagoula, MS: 1.0 Bcfd (Gulf LNG Energy LLC)
8 11 37 27. Bradwood, OR: 1.0 Bcfd (Northern Star LNG - Northern Star Natural Gas LLC)
9 3536 28. Pascagoula, MS: 1.3 Bcfd (Casotte Landing - ChevronTexaco)
12
30 38 E 14 29. Cameron, LA: 3.3 Bcfd (Creole Trail LNG - Cheniere LNG)
30. Port Lavaca, TX: 1.0 Bcfd (Calhoun LNG - Gulf Coast LNG Partners)
13 31. Freeport, TX: 2.5 Bcfd (Cheniere/Freeport LNG Dev. - Expansion)
17 US Jurisdiction 32. Sabine, LA: 1.4 Bcfd (Cheniere LNG - Expansion)
PROPOSED TO MARAD/COAST GUARD
FERC 33. California Offshore: 1.5 Bcfd (Cabrillo Port - BHP Billiton)
34. So. California Offshore : 0.5 Bcfd, (Crystal Energy)
US Coast Guard 35. Louisiana Offshore : 1.0 Bcfd (Main Pass McMoRan Exp.)
As of October 24, 2005 36. Gulf of Mexico: 1.0 Bcfd (Compass Port - ConocoPhillips)
37. Gulf of Mexico: 2.8 Bcfd (Pearl Crossing - ExxonMobil)
* US pipeline approved; LNG terminal pending in Bahamas 38. Gulf of Mexico: 1.5 Bcfd (Beacon Port Clean Energy Terminal - ConocoPhillips)
39. Offshore Boston, MA: 0.4 Bcfd (Neptune LNG - Tractebel)
40. Offshore Boston, MA: 0.8 Bcfd (Northeast Gateway - Excelerate Energy)
12 Office of Energy Projects
FERC
Potential North American
LNG Terminals
54
53 POTENTIAL U.S. SITES IDENTIFIED BY PROJECT SPONSORS
41. Coos Bay, OR: 0.13 Bcfd, (Energy Projects Development)
42. California - Offshore: 0.75 Bcfd, (Chevron Texaco)
51 52 43. Pleasant Point, ME : 0.5 Bcfd (Quoddy Bay, LLC)
55 44. St. Helens, OR: 0.7 Bcfd (Port Westward LNG LLC)
50 45. Galveston, TX: 1.2 Bcfd (Pelican Island - BP)
48
43 46. Philadelphia, PA: 0.6 Bcfd (Freedom Energy Center - PGW)
47 47. Astoria, OR: 1.0 Bcfd (Skipanon LNG - Calpine)
44 49
48. Robbinston, ME: 0.5 Bcfd (Downeast LNG - Kestrel Energy/Dean Girdis)
41 42 49. Boston, MA: 0.8 Bcfd (AES Battery Rock LLC - AES Corp.)
50. Calais, ME: ? Bcfd (BP Consulting LLC)
46 POTENTIAL CANADIAN SITES IDENTIFIED BY PROJECT SPONSORS
51. Quebec City, QC : 0.5 Bcfd (Project Rabaska - Enbridge/Gaz Met/Gaz de France)
52. Rivière-du- Loup, QC: 0.5 Bcfd (Cacouna Energy - TransCanada/PetroCanada)
53. Kitimat, BC: 0.61 Bcfd (Galveston LNG)
54. Prince Rupert, BC: 0.30 Bcfd (WestPac Terminals)
55. Goldboro, NS 1.0 Bcfd (Keltic Petrochemicals)
POTENTIAL MEXICAN SITES IDENTIFIED BY PROJECT SPONSORS
42 56. Lázaro Cárdenas, MX : 0.5 Bcfd (Tractebel/Repsol)
57. Puerto Libertad, MX: 1.3 Bcfd (Sonora Pacific LNG)
58. Offshore Gulf, MX: 1.0 Bcfd (Dorado - Tidelands)
59. Manzanillo, MX: 0.5 Bcfd
57 60. Topolobampo, MX: 0.5 Bcfd
45
60
58
US Jurisdiction
59 FERC
56 US Coast Guard
As of October 24, 2005
13 Office of Energy Projects
FERC
Maximum LNG
Deliverability Growth
+ + + +
14
FERC
US Natural Gas Balance
90
80
70
60
Volume (Bcf per day)
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 19 20
-10
Years (beginning in 2000)
Total Production Canadian Imports
Net Imports from Mexico LNG Imports
Alaska (to Lower 48) Demand - US
15