Corpus Christi Liquefaction Project

Welcome to our Open House

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Corpus Christi Liquefaction ProjectSchedule

August 2019Train 3 Substantial Completion

December 2018Train 2 Substantial Completion

March 2018Train 1 Substantial Completion

November 2013Notice to Proceed to EPC Contractor

August 2012Commence Front End Engineering Design

August 2012FERC Application Filing

January - July 2012Front End Studies

DateMilestone

Corpus Christi Liquefaction Project Overview

Purpose: to liquefy excess domestic natural gas, particularly in the Eagle Ford Shale, for export to foreign markets, while also providing the ability to import LNG.

Project is on the same site as the LNG Regas Terminal which was permitted in 2005 but never built.

Liquefaction cools natural gas to condense it into a liquid.

Impurities present in pipeline natural gas (such as sulfur, water, and carbon dioxide) are removed. The gas is then progressively cooled to -260°F using a refrigeration process similar to an air conditioner or refrigerator.

The project will have three identical units (called “trains”) with a capacity of approximately 1.8 Bcf/d.

Additionally, a 24-mile-long supply pipeline from the northwest is proposed.

24-Mile Pipeline to Supply Natural Gas

Corpus Christi LiquefactionArtist Rendition

ConocoPhillips Optimized CascadeSM Process

1. The natural gas is received at about 1100 psig and 70°F

2. CO2, H2S, water, and mercury are removed to prevent freezing and damage

3. The natural gas is first cooled to -25°F by a propane refrigerant

4. Then to -130°F by ethylene

5. Heavy hydrocarbons which may freeze in the LNG are removed

6. The final cooling to -215°F is done by a methane refrigerant.

7. The LNG is pumped to the LNG storage tanks where it is “flashed” down to -256°F.

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Process Advantages– Reliability – design concept based on two 50%

compressors for each refrigeration cycle– Turn-down – Two-in-one concept provides for

~100% efficiency at 60-80% utilization– Intermittency – fast start-up and cool-down

Proven, Reliable Design– Bechtel/Conoco Phillips collaboration with 40+

year history– Proven, reliable “template” design– Kenai Alaska, 1969– Atlantic LNG Trains 1, 2, 3 and 4, 2005– Egyptian LNG Trains 1 & 2, 2005– Darwin LNG, 2006– Equatorial Guinea LNG, 2007– Angola LNG, under construction– Currently under construction in Australia

• QCLNG• Gladstone LNG• Wheatstone LNG• Australia Pacific LNG

– Cheniere’s Sabine Pass Liquefaction Plant is waiting on Notice to Proceed

ConocoPhillips Optimized CascadeSM LNG Train

33.5 mtpa Liquefaction Train at Darwin LNG

U.S. Natural Gas Markets

US Proved Non-Producing Reserves

Annual Production from Unconventional Reservoirs

US Natural Gas ResourcesTcf

Bcf/d MMB/d

Tcf

Current market fundamentals in the U.S. – increased production, increased natural gas reserves and lackluster increase in natural gas demand – have created an opportunity to expand into exports – benefitting U.S. economy, creating jobs and reducing balance of trade

49 5160

6778 85

98

0

20

40

60

80

100

120

2003 2004 2005 2006 2007 2008 2009

Source: EIA, US Crude Oil, Natural Gas and Natural Gas Liquids Proved Reserves, 2009.

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2

4

6

8

2010 2011E 2012E 2013E 2014E 2015E 2020E0.0

1.0

2.0

3.0

4.0

Liquids Gas

Includes Eagle Ford, Bakken Shales; Granite Wash, Piceance & Uinta Tight Sands

Source: Advanced Resource Intl; Cheniere Research.

1,3651,747

2,1192,543

0

500

1,000

1,500

2,000

2,500

3,000

2008 2009 2010 2011

Conventional Shale

Source: DOE, Annual Energy Outlook 2008-2011.

U.S. Rig Activity

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Large supplies of natural gas are available in the U.S. with access to existing pipeline infrastructure

Montana Thrust Belt

Cody

Gammon

Hilliard Baxter-

MancosGreaterGreenRiverBasin Forest

City Basin

Pierre

IllinoisBasinPiceance

Basin

LewisSan Juan

Basin

RatonBasin Anadarko

Basin

PaloDuroBasin

PermianBasin

BarnettWoodford

Pearsall

Eagle FordRio GrandeEmbayment

Barnett

Woodford

MichiganBasin Antrim

NewAlbany

Chattanooga

TexasLouisianaMississippi Salt Basin

Fayetteville

Ft. WorthBasin

Arkoma BasinConasaugaBlack Warrior

BasinMarfaBasin

Paradox Basin

MaverickSub-Basin

Shale Gas Plays – Lower 48 States

Hermosa

MancosCherokee Platform

Excello-Mulky

AppalachianBasin

Shale Gas Plays

Basins

366

1,373

Lower 48Recoverable Unconventional

Reserves (Tcf)

0

700

1400

1996 2009

ShaleCBMTight Gas

Source: EIA, March 2010

Corpus Christi Liquefaction Site

HaynesvilleBossier

Granite Wash

WillistonBasin

Bakken

Sabine Pass LNG

Marcellus

Eagle Ford Attracting Enormous Investment$19 Billion Committed so far by Major IOCs

Locator Map

Corpus Christi Export Project

San Antonio

Wet Gas/Condensate

Wet Gas/

Condensate

Oil

Dry Gas

~70 Miles

Eagle Ford Condensate & Crude Production

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120

140

160

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Feb

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May Ju

nJu

lA

ugS

ep Oct

Nov

Dec Ja

nFe

bM

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prM

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Dec Ja

nFe

bM

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prM

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Dec Ja

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2008 2009 2010 2011

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b/d

020406080100120140160180200

Rig

Condensate Crude Rigs

Expanding U.S. Natural Gas Exports Will…

Promote stability in domestic natural gas pricing by raising domestic natural gas productive capacity

Stimulate state, regional and national economies through job creation, increased economic activity and tax revenues, including the direct creation of approximately 3,000 engineering and construction jobs during the course of the project and, indirectly, 30,000 - 50,000 permanent jobs in the exploration and production sector

Reduced reliance on foreign sources of oil by promoting domestic production of petroleum and by encouraging the drilling of wells in areas where there is a significant amount of natural gas associated with crude oil and natural gas liquids (“NGL”)

Improve U.S. balance of payments through the exportation of approximately 2 Bcf/d of natural gasvalued at approximately $5 billion, and the displacement of $1.7 billion in NGL imports thus furthering the President’s National Export Initiative

Promote liberalization of the global natural gas trade through the fostering of a global, liquid market, based on prices cleared in free and openly traded natural gas markets

Advance national security and the security of U.S. allies through diversification of global natural gas supplies

Increase economic trade and ties with foreign nations, including neighboring countries in the Americas, and displace environmentally damaging fuels in those countries

Corpus Christi LiquefactionInfrastructure and Jobs

Infrastructure Investment ~ $10 B

Direct Jobs– About 160 permanent jobs at the terminal

– Average construction jobs of 1,800 for four to five years

– Peak of 3,000 construction jobs

– Estimated 15 million work hours

Indirect Jobs– Will support 30,000 to 50,000 permanent jobs in natural gas industry

Construction timeline 2014-2019

LNG is natural gas that has been super-cooledto -260°F to condense it from a gas into a liquid

Liquefaction reduces volume by 600-to-1 Stored cold in insulated containers at near

atmospheric pressure Safe to store and transport LNG is colorless, odorless,

non-corrosive and non-toxic When vaporized, LNG is only about half the

weight of air

What Is Liquefied Natural Gas (LNG)?

LNG is a safe, environmentally-friendly fuel

LNG is odorless, non-toxic and non-corrosive LNG would rapidly evaporate if spilled, leaving no

residue on water or soil, nor any slick or sheen Once LNG is returned to natural gas, produces

relatively low emissions when burned to heat homes, generate electricity and fuel vehicles

All facilities will be located within the existing Cheniere property boundaries, previously reviewed and approved by FERC and other federal and state agencies

No impacts to Threatened or Endangered Species No impacts to cultural resources Dredge material will be used to cover old bauxite

beds, greatly reducing current dust problem and protecting groundwater

Wetland impacts will be mitigated through U.S. Army Corps of Engineers permit – the new protection to be built around Shamrock Island

Operation of new facilities will comply with National Ambient Air Quality Standards (NAAQS) and Texas Commission on Environmental Quality regulations

Shamrock Island Mitigation Site

LNG Safety / Security

LNG PROPERTIES LNG is stored in tanks at near atmospheric pressure If LNG is released, it quickly vaporizes to natural gas Natural gas is flammable only in a narrow range of

5% – 15% of natural gas in air LNG vapors (methane) are not explosive in an

unconfined environment

LNG LIQUEFACTION PLANTS AND TERMINALS There are currently 38 LNG liquefaction plants and

87 LNG terminals in the world, with another 16 and 26 in construction (respectively)

LNG liquefaction plants have had an exemplary safety record for 48 years

The Terminal design emphasizes early detection, with gas, temperature and UV/IR sensors tied into a shutdown system

Modern tanks composed of 9% nickel-steel, have been in use since 1954 and have never had a failure. The CC Liquefaction Plant will have full containment LNG tanks (each inner tank surrounded by an outer concrete tank 3 foot thick)

Regulations require safety zones around LNG facilities large enough that any flammable vapors would not reach the facilities' property lines and any fire would not impact those beyond the property line

PORT AND WATERWAY SAFETY / SECURITY The USCG determines the suitability of a waterway

to transport LNG safely and creates safety and security rules for each specific port

USCG conducts background checks of LNG carrier crews and conducts ship searches

Access to the LNG Terminal will be tightly controlled through gated security and continuous surveillance monitoring and all workers will be required to have TWIC cards

Safety zones are in place to safeguard carriers, harbors, ports and waterfront facilities as part of a facility security plan to minimize vulnerability

LNG CARRIERS First voyage of LNG tanker Methane Pioneer

occurred in 1959 LNG carriers have made more than 105,000

voyages without any major accidents or safety problems, either in port or at sea

No LNG ship has ever had a loss of containment LNG ships are always double-hulled and feature

primary and secondary cargo containment systems to prevent leaks or ruptures in the unlikely event of a grounding or collision

LNG Shipping

Double-hulled, state-of-the-art tankers LNG is stored in a special containment system within the inner hull Kept at about 1.5 psi above atmospheric pressure at -260ºF Many safety features for cargo containment & fire prevention Well over 105,000 safe voyages

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What Will I See?

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Shamrock Island Mitigation Site

Additional Breakwaters

Shamrock Island is an uninhabited island in Corpus Christi Bay that serves as an important rookery for large numbers of nesting birds

Beach erosion and a loss of wetlands along the northern end of the island diminish vital bird nesting habitat

Corpus Christi Liquefaction has begun preparation work on compensatory mitigation at Shamrock Island for unavoidable impacts to aquatic resources at the Project site

Mitigation will include the creation of additional breakwaters to protect the island, preserve tidal wetlands, and create additional habitat for submerged aquatic vegetation

Shamrock Island Mitigation Site

FERC is an independent agency that regulates and oversees energy industries in the economic and environmental interest of the American public with the intention of providing dependable, affordable energy through sustained competitive markets.

Federal Energy Regulatory Commission:888 First Street, N.E.

Washington, DC 20426www.ferc.gov

Public Inquiries1-866-208-3372

customer@ferc.gov

Who Is FERC?