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Building on the Promise
of LNG Canada
Andy Calitz
CEO
LNG Canada
Disclaimer page
• LNG Canada Development Inc. (“LNG Canada”) is wholly-owned by its shareholders: Shell Canada Energy, North
Montney LNG Limited Partnership, PetroChina Kitimat LNG Partnership, Diamond LNG Canada Partnership,
Kogas Canada LNG Ltd. (together, the “Participants” and each a “Participant”). The Participants are separate
entities from LNG Canada and the statements made in this presentation are being made by LNG Canada on its
own behalf. No Participant has a controlling interest in LNG Canada.
• This presentation may contain forward looking statements of future expectations that are based on management's
current expectations and assumptions and involve known and unknown risks and uncertainties that could cause
actual results, performance or events to differ materially from those expressed or implied in these statements. The
presentation and each forward looking statement speaks only as of the date of this presentation. LNG Canada
undertakes no obligation to publicly update or revise any forward looking statement as a result of new information,
future events or other information. In light of these risks, results could differ materially from those stated, implied or
inferred from the forward looking statements contained in this presentation.
What is LNG Canada?
A Company that will export
Canadian natural gas to Asian
markets from North America’s
West Coast for the first time
A Company that transports abundant supply
of natural gas to a liquefaction facility in Kitimat, BC
A Company that transports abundant supply
of natural gas to a liquefaction facility in Kitimat, BC
Kitimat
Project site PORCHER ISLAND
TRIPLE ISLAND
PILOT STATION
KITKATLA
HECATE STRAIGHT
BANKS ISLAND
PRINCIPE CHANNEL
HARTLEY BAY
DOUGLAS CHANNEL
TERRACE
KITAMAAT
VILLAGE
PRINCE RUPERT
METLAKATLA VILLAGE
LAX KW’ALAAMS KITSUMKALUM
KITSELAS
HAIDA GWAII
A Company that has built relationships with Indigenous
groups at the facility and along the shipping route
A Company that achieved FID on October 1, 2018
surrounded by a diverse group of stakeholders and
First Nations
The largest private sector investment in Canadian history
What did LNG Canada do that was
new and different?
KOGA
S
PETRONAS PetroChina
Mitsubishi
Corporation
40%
25% 15% 15% 5%
Shell
Assembled a powerful international Joint Venture
seven years before FID, and then added Petronas
Copyright of LNG Canada
Incorporated Operator LNG
Canada
Gas sellers
LNG buyersGasSupply
Feed Gas LNGPipeline Owner(TransCanada)
BC Hydro
Federal and Provincial Governments
First NationsFEED/EPCcontractors
LNG Canada Project JVALNG Canada Shareholder Agreement
Secondment Arrangements AgreementsCapacity, Nomination, Lifting and Allocation Agreement
Marketing Arrangements
Coastal GasLink Pipeline
Shell Global SolutionsShell Research Ltd
RTA, Methanex, Other Land Owners
Participants
Affiliate Services Agreements
Marine ServiceProviders
(Vendors / Subcontractors)
LNG Canada TechnologyAgreements
LandAgreements
FEED, EPC contracts
PowerAgreements
Marine services agreement
Export Licence,Permits, Fiscals
Impact BenefitsAgreements
ParticipantsShell Canada
North Montney LNG Partnership (Petronas) PetroChina Kitimat LNG PartnershipDiamond LNG Canada (Mitsubishi)
Kogas Canada LNG
JVP Production
Gas Supply Arrangements
PipelineAgreements
Adopted a “bring your gas”, “lift and sell your own LNG” business modelAdopted a “bring your gas”, “lift and sell your
own LNG” business model
Simplified a complex value chain by allocating responsibility to those best able to execute
Satisfied demanding regulators: CEAA, OGC, EAO, NEB
0.6
0.5
0.4
0.3
0.2
0.1
0 Darwin
LNG
Rasgas
LNG
Qatar gas
LNG
Atlantic
LNG
Gorgon
LNG
Gladstone
LNG
Nigeria
LNG
Woodside
LNG
Oman
LNG
Pacific
NW
LNG
Sabine
pass
LNG
Snohvit
LNG
BC GHG
intensity
benchmark
LNG
LNG
Canada
GHG Intensity (tCO2e/tLNG)
Designed for LNG with the lowest CO2 emissions/tonne
in the world
Used an aero derivative gas turbine in an LNG facility
for the first time; efficiency provides low CO2 footprint
and maximum production
Achieved unprecedented support from community and Indigenous people
What makes LNG Canada
competitive?
World-class unconventional gas/liquids
Montney ensures supply certainty
for many decades to come
Short sailing distance to Asia
CONFIDENTIAL
A competitive fiscal framework resulting from our work with three levels of government
Carbon Tax
Corporate Income
Tax
Repeal BC LNG
Income Tax
Property Tax
Provincial Sales Tax
NEB Export License
Extension to 40 Years
BC Hydro Industrial
Rate
Capital Cost
Allowance
Infrastructure Investment
AECO lower than Henry Hub
basis
-1
0
1
2
3
4
5
6
2014 2015 2016 2017
Henry Hub
AECO
AECO basis: under -0.5 USD/MMBtu
AECO basis: over -1 USD/MMBtu
USD/MMBtu
Execution Schedule
• Minimized through modularization
Fiscal
• Persistence on tax and fiscal competitiveness
Increased production
per train
• Gas composition
• Stream days
Minimum Capex and Opex
• BCH
• Owners’ cost
• Shipping
• Value chain
• Staffing
• Pipeline Capex and Opex
• Contingency
RFP
• Competitive process for EPC lump sum construction contract
Reduction in costs, increase in production efficiency
by using every lever available
How are we building Canada’s
largest infrastructure project?
By aspiring to be the Safest Project on Earth
Copyright of LNG Canada
MODULE FABRICATION
YARDS
KITIMAT PLANT SITE JVP SCOPECGL PIPELINE
By aspiring to be the Safest Project on Earth
By making LNG Canada a collaboration with
stakeholders, First Nations and partners
Other First Nations
CEAA, EAO, OGC, NEB
CGL
ITA, BCCA, ICBA
District of Kitimat
Joint Venturers
RioTinto
Labour Providers
Government of BC
The Community
JGC Fluor
BC Hydro Haisla Nation
Government of Canada
WorkSafe BC
General Electric
By transforming from project design into
facility construction
Copyright of LNG Canada
By transforming from project design into facility construction
Cebu, ManilaDetailed Design
Office
Calgary, ABProject Directorate
Kitimat, BC Plant Site
Vancouver, BCEnvironmental
Design Office
YokohamaPlant Design
OfficeModule Fabrication Yards
Field Office, BCPipeline
Equipment FabricationPackaged Equipment
HoustonMarine & Storage
Design Office
By working with an EPC on a lump sum basis
By fabricating modules in multiple yards with a
proven track record
By providing opportunity for First Nations business,
local companies, BC and Canadian businesses
By attracting a Canadian workforce to an historical project
LNG Canada: The first Canadian LNG export facility