Cabrillo Port

Supplying California with Clean, Reliable Natural Gas

Cabrillo Port

Who Is BHP Billiton?

BHP Billiton – Diversified With a Global Reach

Energy CoalDiamonds & Spec Prod

Aluminium

Stainless Steel MaterialsCarbon Steel Materials

Base Metals

Petroleum

BHP Billiton Snapshot

BHP Billiton LNG, Inc. is a Subsidiary of BHP Billiton, the World's Largest Diversified Resources Company• 35,000 employees working in more than 100 operations in approximately 20 countries• Market Cap: U.S. $95 Billion (October ‘05)• Industry or near industry leader

– Aluminum– Energy coal and metallurgical coal– Copper– Ferro-alloys– Iron Ore and titanium minerals

• Substantial Interest– Oil– Gas– Liquefied natural gas– Nickel– Diamonds– Silver

BHP BillitonHealth, Safety, Environment and Community Policy

“We commit to continual improvement in our performance, efficient use of natural resources and aspire to zero harm to people and the environment”

Cabrillo Port

Project Description

Project Overview

• Import LNG from Australia

• Operate a LNG Floating Storage and Re-gasification Unit (FSRU) Approximately 21 miles Offshore Oxnard

• Subsea Natural Gas Pipeline Linking into the Existing SoCalGas System

• Deliver about 800 Million Cubic Feet of Natural Gas Daily, About 13% of California’s Average Daily Natural Gas Consumption

Project Benefits

• Increases California’s Natural Gas Supply Diversity

• Reduces California’s Reliance upon Interstate Pipeline Systems

• Reduces California’s Reliance on Diminishing Domestic Resources

• Supply Diversity and Capacity Should Moderate Prices

• Safe & Proven Technology

• Smallest Environmental Footprint Possible

• Creates California-Based, Permanent Jobs

• Long-term Investment and Involvement in Local Communities

Cabrillo Port Site

Closest land fall 14.04 miles

from Cabrillo Port

Over 21 miles from the cityof Oxnard and will not bevisible to city residents

Cabrillo PortCabrillo Port

Marine Sanctuary Boundary12.43 miles from Cabrillo Port

Almost 17 miles from Cabrillo Port

to Pt. Dume

Why Choose This Site?

• Access to SoCalGas Company’s Existing Transmission & Distribution Networks

• SoCalGas Pipeline Routed Predominantly Through Farmland• The Remote Offshore Site

– Provides an additional layer of security and safety– Ability to locate facility out of critical view shed– Minimal environmental footprint – Minimal societal impact

Natural Gas Pipeline Landfall

SoCalGas Pipeline

Twin 24” gas pipelines connecting Cabrillo Port and the SoCal system will be installed underground using Horizontal Directional Drilling (HDD) avoiding any impact on the beach

HDD pipelines (avoiding beach)

FSRU located 20.94 miles offshore

Visual Simulation – Typical Conditions

Photo taken from Hwy 1 FSRU is 14.04 miles offshore

Photo taken from Hwy 1 FSRU is 14.04 miles offshore

Visual Simulation – Clear Conditions

Visual Simulation – Marine Layer Conditions

Photo taken from Hwy 1 FSRU is 14.04 miles offshoreVisibility in photo is less than 1 mile

Visual Simulation – Night

Photo taken from Hwy 1 FSRU is 14.04 miles offshore

Overview of Why California Needs LNG Demand for Natural Gas is Growing in CA, Yet Domestic Supplies are

Decreasing California already imports 85% of the natural gas it currently needs

Control LNG delivered directly into the existing SoCalGas Company’s system will

serve CA market Less opportunity for market manipulation

Economics A long-term dedicated gas supply will moderate gas prices and help prevent

price spikes or outages Supply Diversification

All current basins that supply CA can supply multiple markets Environmental Benefits

Does not negatively impact CA’s commitment to renewable sources Cleaner burning natural gas is the fossil fuel of choice

U.S. Projected Natural Gas Demand/Supply Balance

Source: U.S. Energy Information Administration

Cabrillo Port

State & Federal Regulatory Review

Environmental Review Process

Primary Regulators 4 Primary Agencies Federal and State Regulators

U.S. Department of Homeland Security (U.S. Coast Guard)Deepwater Ports License

U.S. EPA Region 9 (California)Air Quality and Emissions Permit

California State Lands CommissionLand Lease

California Coastal CommissionCDP, Consistency Determination

Other Federal Regulators U.S. Department of Transportation U.S. Maritime Administration

Other State Regulators California Coastal Conservancy California Public Utilities Commission

Cabrillo Port

Technology & Safety

Safety, Security and Verification• All components are engineered to the highest safety standards and the gas operations

systems are designed to be “fail safe” without human intervention• LNG carriers’ and the LNG terminal’s security plans are approved and regularly

monitored by the U.S. Dept. of Homeland Security’s U.S. Coast Guard • The remoteness of Cabrillo Port provides an additional layer security and safety• Major classification societies which approve the design of ships and offshore structures

have established Classification Rules for Offshore LNG terminals– One of these societies will independently examine and verify the design and

construction of Cabrillo Port

Class Rules for Offshore LNG Terminals from the 3 largest Classification Societies

Development Components

FSRU in 2,850’WD

2 X 24” 20 Mile Subsea Pipeline

Directionally Drilled Section Under Beach

36” 15 Mile Onshore Pipeline

SoCal Tie-in

Oxnard

Malibu

Center Road Station Tie-in

Floating Storage & Regasification Unit

“ A combination of proven technology components”

Safety of Location

√ Cabrillo Port’s Remote Location Minimizes Perceived Safety Concerns

√ Cabrillo Port is Over 21 Miles from the Nearest Heavily Populated Area – Oxnard, CA

√ Cabrillo Port is Over 14 Miles from the Nearest Landfall√ Cabrillo Port is Situated in an Area Known for Relatively Mild

Weather, Tidal and Geologic Activity√ Cabrillo Port is Situated Miles Beyond the International Shipping

Lanes√ Cabrillo Port is Miles from the Channel Islands Marine

Sanctuary

Floating Storage & Regasification Unit Safety

• Storage Capacity = 273,000 m3• Length = 928ft • Displacement ~ 210,000 DWT

• Anticipated Normal Throughput = 800 MMSCFD• Design Throughput = 1,500 MMSCFD• Permanently Turret Moored in 2,850’ wd.

Single Point Mooring Side by side LNG transfer Moss spherical LNG storage tanks LNG regasification

Proven Technologies

BHP Billiton Offshore Floating Expertise• BHP Billiton has been a pioneer in floating technology with a total

of 9 floating units (6 FPSO, 1 FSU & 2 FSO) since 1985• BHP Billiton has 20 years experience of successfully & safely

marinizing far more complex hydrocarbon processing facilities on floating production units

1999 - Buffalo FPSO – Converted 90,000 t dwt tanker

1998 Modec Venture I – En route to ZOCA (Elang/K/KN)

1986 – JABIRU FPSO – Converted 150,000 t dwt tanker

1991- SKUA FPSO – Converted 150,000 t

dwt tanker

1994 – GRIFFIN FPSO Newbuild 100,000 t

Deepwater Pipeline Technology

• Deepwater pipeline systems are used throughout the Gulf of Mexico and other locations worldwide

• Two 24” pipelines provide redundancy which increases reliability

• The pipelines are designed for fail-safe shut-in and to withstand earthquakes

Cabrillo Port Pipeline Route & Bathymetry

Pipeline Safety

√ BHPB will Operate the Subsea Pipeline from the FSRU to SoCalGas Connection Point

√ Cabrillo Port will Utilize an Accurate, Proven, “Mass Balance” Leak Detection System

√ Cabrillo Port will Be Subject to Annual Pipeline Inspections by SoCalGas Using Intelligent Pigging Technology

√ SoCalGas Company Owns and Operates the Existing Pipelines Into Which FSRU Gas Supplies will Link

√ Cabrillo Port will Provide Natural Gas that Meets or Exceeds California Quality Standards which are Among the Most Exacting in the Nation