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Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September 1, 2010 Federal Process for Siting Natural Gas Infrastructure 17 th IPEC Conference

Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

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Page 1: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Michael J. McGehee Director, Division of Pipeline Certificates

Office of Energy ProjectsFederal Energy Regulatory Commission

San Antonio, Texas September 1, 2010

Federal Process for SitingNatural Gas Infrastructure

17th IPEC Conference

Page 2: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 2

FERC Organization Chart

Chairman Jon Wellinghoff

Commissioner John R. Norris

Commissioner Philip D. Moeller

Commissioner Marc Spitzer

CommissionerCheryl A. LaFleur

Energy Energy ProjectsProjects

Electric Electric ReliabilityReliability

External External AffairsAffairs

Energy Market Energy Market RegulationRegulation

EnforcementEnforcement

Energy Policy & Energy Policy & InnovationInnovation

Administrative Administrative LitigationLitigation

Administrative Administrative Law JudgesLaw Judges

Executive Executive DirectorDirector

General General CounselCounsel

SecretarySecretary

Page 3: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 3

How the Commission is Appointed

The Federal Energy Regulatory Commission (FERC or Commission) is composed of up to five Commissioners who are appointed by the President of the United States with the advice and consent of the Senate. Commissioners serve five-year terms, and have an equal vote on regulatory matters.

To avoid any undue political influence or pressure, no more than three Commissioners may belong to the same political party. There is no review of FERC decisions by the President or Congress, maintaining FERC's independence as a regulatory agency, and providing for fair and unbiased decisions. The Commission is funded through costs recovered by the fees and annual charges from the industries it regulates.

One member of the Commission is designated by the President to serve as Chair and FERC's administrative head.

Page 4: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 4

Natural Gas Act

The Natural Gas Act is the law that sets out FERC’s areas of responsibilities:

Section 1 – Identifies projects exempt from FERC jurisdiction

Section 3 – Allows FERC to authorize import / export projects

Section 7 – Allows FERC to authorize interstate pipeline projects (including storage) and grant eminent domain

Page 5: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 5

Projects Exempt fromFERC Jurisdiction

Local Distribution Company facilities (e.g., Baltimore Gas and Electric, Washington Gas Light, etc.)

Intrastate pipelines (where gas is produced, transported and consumed within a single state)

Hinshaw pipelines (gas is produced in one state, but is transported and consumed within another)

Gathering facilities

Page 6: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 6

Gas Pipeline Program

Evaluate applications for facilities to import, export, transport, store or exchange natural gas

Authorize the construction and operation of facilities for such services

Approve abandonment of such facilities

Conduct environmental reviews of proposals involving construction, modification, or abandonment

Implement the “Pre-Filing Process”

Conduct inspections of LNG facilities and pipeline construction

Page 7: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 7

Office of Energy Projects - Functions

OEP has the engineering and environmental expertise to:

certificate new gas pipeline projects,

Authorize LNG import / export projects

authorize and monitor hydroelectric projects, provide “backstop authority” to site electric transmission facilities, and

analyze energy infrastructure needs and policies. OEP focuses on:

project siting and development,

balancing environmental and other concerns,

ensuring compliance,

safeguarding the public, and

providing infrastructure capacity information. Other FERC Offices

OGC has corresponding hydro and pipeline legal responsibilities

Other offices also have input to our products

Page 8: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 8

How Does FERC Evaluate All Of These Major Projects?

What Are The Criteria Used inThis Evaluation?

Project Evaluation

Page 9: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 9

In the United States, there are approximately 217,300 miles In the United States, there are approximately 217,300 miles of interstate natural gas transmission pipeline.of interstate natural gas transmission pipeline.

Source: Based on data from Ventyx Global Energy Decisions, Inc., Velocity Suite, January 2010, and EIA’s Natural Gas Pipelines.

Page 10: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 10

Balancing InterestsBalancing Interests

People Like... But They Also Want...

Due Process Expedited Process

Smaller Government Effective Government

Less Regulation Assurance of Fair Markets

Market-dictated OutcomesProtection from Market

Dysfunctions, Unexpected Risk,and Unjust Rates

Protection for the Environment andProperty Interests

Ample Supplies ofLow-cost Energy

Due Process Expedited Process

Smaller Government Effective Government

Less Regulation Assurance of Fair Markets

Market-dictated OutcomesProtection from Market

Dysfunctions, Unexpected Risk,and Unjust Rates

Protection for the Environment andProperty Interests

Ample Supplies ofLow-cost Energy

Page 11: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 11

Certificate Process Overview

Application Filed

Order Issued

Non-Environmental Review and Analysis• Engineering – GQI, storage, hydraulic flow• Tariff – rates, terms & conditions of service• Policy – precedents, rules, regulations• Accounting

Environmental Review and Analysis• Biological – fish, wildlife, vegetation• Cultural – historic preservation• Land use – recreation, aesthetics• Soils and geologic• Air and noise – quality, loudness• Socioeconomic impacts• System alternatives

Parallel Processing Paths

Page 12: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 12

StartPF

Review

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Review DraftResource Reports

& Prepare Preliminary DEIS

IssueDraftEIS

FileAt

FERC

IssueOrder

Prepare Draft

ResourceReports

Issue

FinalEIS

Applicant’s ActivitiesApplicant’s Activities

FERC’s ActivitiesFERC’s Activities

DetermineApplicationComplete

(months)

SubmitPF

letter

12

Timeline for Project ReviewTimeline for Project Review

Page 13: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 13

GoalsGoals

─ Foster Competition

─ Consider Captive CustomersConsider Captive Customers

─ Avoid Unnecessary Physical ImpactsAvoid Unnecessary Physical Impacts

─ Achieve Optimal Amount of FacilitiesAchieve Optimal Amount of Facilities

─ Encourage Complete RecordEncourage Complete Record

─ Expedite Review TimeExpedite Review Time

Certificate Policy Statement

Page 14: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 14

Certificate Policy Statement

Develop Record

Adverse Impacts on

• Existing Customers and Pipelines

• Landowners

• Communities

Specific Benefits (meet new demand, eliminate bottlenecks, access new supplies, lower

cost to consumers, new interconnects to improve grid, provide competitive alternatives, increase electric reliability, clean air objectives, etc)

Need and Market (precedent agreements, demand projections, etc)

Condemnation Impact

Page 15: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 15

FERC Process

FERC’s process is a model of efficiency

Pre-filing

Application Analysis

Post-authorization

This process works for all stakeholders

Project sponsors

Federal, state, and local agencies

NGOs

Landowners

Other concerned entities

Page 16: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 16

Overview of Shale Play Development

Natural gas production from hydrocarbon rich shale formations is one of the most rapidly expanding trends in domestic production.

As traditional sources of natural gas continue to be depleted, new sources of supply, such as shale gas, must be developed in order to continue to meet the energy demands.

Hydraulic fracturing and horizontal drilling have allowed previously unrecoverable sources of gas to be developed in an economical and environmental safe manner.

Because it is located in both traditional and non-traditional production locations, shale gas development presents unique economic opportunities to maximize each state’s resources in a manner that is environmentally safe.

The development of natural resources expands the economy of local communities by creating jobs and providing residents increased capital through royalty payments.

State governments benefit from increased natural gas production through increased tax revenues.

Because of its role in alternative energy strategies and reducing greenhouse gas emissions, natural gas use is expedited to continue to rise.

Page 17: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 17

Future U.S. Gas Supply

Source: EIA Annual Energy Outlook 2010 and EIA spreadsheets.

OffshoreOffshore

ConventionalConventional

Coalbed MethaneCoalbed Methane

Gas ShalesGas Shales

Net Pipeline ImportsNet Pipeline ImportsLNG ImportsLNG Imports

AlaskaAlaska

Page 18: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 18

PGC Resource Assessments, 1990-2008Total Potential Gas Resources (mean values)Total Potential Gas Resources (mean values)

Source: Report of the Potential Gas Committee (December 31, 2008) “Potential Supply of Natural Gas in the United States” June 18, 2009

The growing importance of shale gas is substantiated by the fact that, of the 1,836 Tcf of total potential resources, shale gas accounts for 616 Tcf (33%).

18

Page 19: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 19

Regional Resource Assessment

Traditional 1,673.4 TcfCoalbed 163.0 TcfTotal U.S. 1,836.4 Tcf

Traditional 1,673.4 TcfCoalbed 163.0 TcfTotal U.S. 1,836.4 Tcf

353.517.3

455.23.4

24.016.6

193.857.0

51.32.6

274.97.5

374.451.9

Source: Report of the Potential Gas Committee (December 31, 2008) “Potential Supply of Natural Gas in the United States” June 18, 2009

Page 20: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 20

United States Shale Basins United States Shale Basins Maximum Reported Gas-in-Place (in Tcf)Maximum Reported Gas-in-Place (in Tcf)

Source: Energy Velocity and Navigant Consulting’s North American Natural Gas Supply Assessment – July 4, 2008

Woodford Shale (101)

Lewis Shale(61)

Cane Creek Shale

Niobrara Shale (13)

Baxter/Lewis/Mowry Shale (265)

Palo Duro Shale

(42)Monterrey/McClure Shale

Marcellus Shale(1,500)

Bakken Shale

(15)

Barnett Shale(168)

Haynesville Shale(717)

Fayetteville Shale (52)

Antrim Shale(76)New Albany Shale(160)

Floyd/Chattanooga Shale (22)

Barnett and Woodford Shale (265)

Caney Shale

Pearsall Shale

Huron Shale

Devonian Shale (244)

Total Shale Gas 3,700 Tcf

Note: While some shale basins have been identified with reserve estimates, others have no reserve data available.

20

Page 21: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 21

Shale Gas Estimates

Source: ICF International Data Base and Compass Report April 2010

0

1

2

3

4

5

6

7

8

9

2005 2010 2015 2020 2025 2030

Sh

ale

Ga

s P

rod

uc

tio

n In

Bc

f/d

Woodford Barnett Fayetteville Haynesville Marcellus Eagle Ford

Page 22: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 22

Summary of FERC Related Projects and Potential Projects Impacting the Shale Basins

Source: FERC

Page 23: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 23

Major Projects to move shale gas out of East Texas and Arkansas.

Barnett Shale

Fayetteville Shale

Woodford Shale

Haynesville Shale

Kinder Morgan EnergyFayetteville Express

2,000 MMcf/d**

Tiger Pipeline 1,250 MMcf/d ** & 400

MMcf/d***

LaCrosse (Enbridge) (1,800 MMcf/d) ***

BoardwalkGulf Crossing1,732 MMcf/d

Southeast Supply Header1,140 MMcf/d & 175 MMcf/d & 360 MMcf/d**

Texas Gas TransmissionFayetteville/Greenville & Compression

1,609 MMcf/d & 2,300 MMcf/d

Midcontinent1,500 MMcf/d & 300 MMcf/d

Gulf South PipelineHaynesville/Perryville Expansion

556 MMcf/d**

** Approved

*** Pending/ Pre-filing

MarkWest638 MMcf/d

CenterPointCarthage to Perryville

1,237 MMcf/d & 280 MMcf/d & 274 MMcf/d

Trunkline GasNorth Texas Expansion

510 MMcf/d**

Source: Based on data from Ventyx Velocity Suite, July 2010 & FERC applications

Page 24: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 24

Summary of Natural Gas Facilities Impacting the Barnett, Woodford, Fayetteville, and Haynesville Shale Basins

Source: FERC

Page 25: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 25

Marcellus Shale Projects

Source: FERC

Clarington

AppalachianBasin

Oakford

Tennessee’sStation 219

Corning

Leidy

Linden

Rivervale

Transco’sComp Sta 195

Princeton

Lambertville

Source: FERC

N Bridge, TIME 3, TEMAX (TETCO)NiSource/MarkWest & NiSource

Appalachain Expansion (NiSource)Line 300 Exp (Tennessee)

Northeast Supply (Williams)*

West to East Connector (NFG)Keystone (Dominion/Williams)

Appalachia to MarketExpansion & TEAM 2013 (TETCO)

Approved or Pending Projects Potential Projects

* Combined Transco’s Rockaway Lateral and Northeast Connector Projects

Appalachian Gateway (Dominion)Line N, R & I Project (NFG) NYMarc (Iroquois)Tioga County Extension (Empire) New Penn (NiSource)

Marcellus Shale Projects

Marcellus to Manhattan (Millennium)Low Pressure East-West (Equitrans)

Northeast Upgrade (Tennessee)

Northern Access (NFG)

Northeast Supply Link (Transco)

East-West – Overbeck to Leidy (NFG)NJ-NY Project (TETCO & Algonquin)

Sunrise Project (Equitrans)

TEAM 2012 Project (TETCO)

Marc I Hub Line (Inergy)

NSD Project (Tennessee)

Page 26: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 26

Summary of Natural Gas Facilities Impacting the Marcellus Shale Basin

Source: FERC

Page 27: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 27

Major Pipeline Projects Certificated (MMcf/d)Major Pipeline Projects Certificated (MMcf/d) January 2000 to July 2010January 2000 to July 2010

Transco (204,236,323,309)

Southern (336,330, 375)

Kern River(135,886,145)

6

NorthBaja

(500, 81 2,700)

Tuscarora (96)

Northwest (162,113)

Kern River (282)

TETCO(250)

Northwest (224)

NFS/DTI (150)

SCG Pipeline (190)

1

23

4

Northwest(191)

East Tenn. (225)

Tennessee (320)

TETCO (197)

El Paso (230,320,620,150)

WBI(80)

ANR(194,220,107,143,168, 98)

26

TETCO(223)

Cove Point (445,800)

Ocean Express(842)

23 CheyennePlains (560,170)

25

8

Calypso (832)

Discovery (200)

Transwestern (150,375,500)

5

Trunkline(1,500)

Trunkline (200)

Questar (272,102,175)

6

Petal (700,600)

Horizon(380)

GTN(207)

Otay Mesa (110)

Florida Gas (239,270,100, 820)

East Tenn. (170)

7

9

Millennium (525)

10

11

Northern Border

(544,130)

Trans Union (430)

Southern Trails (120)

Gulfstream(1,130, 345, 155)

12

Guardian(750, 537)

Trailblazer(324)

2224

El Paso (502)

Center Point (113,132)

Vista del Sol (1,100)

Golden Pass (2,500)

13

27 28

San Patricio (1,000)Dominion South (200)

Columbia(172, 100)

East Tenn. (86)

Tennessee (400,200,100)

Cheniere Corpus Christi (2,600)

East Tenn. (276)

Midwestern(120)

8

14

Dominion (700)

Cameron (1,500,850)

Cheniere Creole Trail (2,000)

Port Arthur (3,000)

15

29

Questar Overthrust (550, 750, 300)

Center Point (1,237, 280, 274)

Vector (245,105)

Equitrans (130)

16

Empire(250)

Gulf LNG (1,500)

Northern Natural

(374)

17

Transco (165)

30

Trunkline (510)

TETCO (150, 150, 455)

Gulf South(1,475, 560, 556)

Kinder Morgan (3,395)

Natural (200,300)

Sonora (1,000)

KM (360)

Elba Express (1,175)

Point Comfort (1,000)

Southeast Supply(1,140,175, 360)

TETCO (360)

18

Gulf Crossing (1,732)

Texas Gas (1,609, 2,300)

Rockies Express East (1,800)

Midcontinent (1500, 300)Southern/Magolia (82)

Cypress (Southern) (500)

31 Dominion(200, 244)

NorthernStar (1,300)

MarkWest (638)

19

20

22. CIG (282,92) 23. CIG (85,133,118,105,899,130) 24. TransColorado (125,300,250) 25. WIC (120,116,675,350,556,330,230,285) 26. El Paso (140) 27. Rendezvous (300) 28. Entrega (1,500) 29. Northwest (450) 30. Rockies Express West (1,800) 31. White River Hub (2,565) 32. Northwest (582) 33. Rockies Express (200) 34. Sundance Trail (Northwest) (150) 35. Diamond Mountain (WIC) (180)

1. Algonquin (285, 131) 2. Islander East (285) 3. Iroquois (230,85, 100, 200) 4. Columbia (135,270) 5. Algonquin (140) 6. Transcontinental (105) 7. Transcontinental (130) 8. Transcontinental (100,142, 250) 9. Columbia (94) 10. Maritimes (80,360,418)11. Algonquin (301)12. Tennessee (500)13. Mill River (800)14. Tennessee (136)15. Texas Eastern (900)16. Algonquin (325)17. Algonquin (800)18. Broadwater (1,000)19. Mid-Atlantic (1,500)20. Algonquin (140, 281)21. Tennessee (350)

McMoRan (1,500)

32

Transco (253, 810, 380)

Northern Natural

(136)

Oasis Pipeline(600)

33Transco(209)

34

Port Dolphin(1,200)

Pacific Connector (1,000)

Fayetteville Express (2,000)

35

Ruby Pipeline (1,456)

Tiger (2,000)

Bison Pipeline

(477)

21

Florida Gas (343)

112.54 BCF/D Total112.54 BCF/D Total16,021 Miles16,021 Miles

Page 28: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 28

All Storage Projects(Capacity in Bcf)

Falcon MoBay (50.0, 9.6)

County Line (6.0)

Bluewater (29.2)

Columbia (12.4)

Natural (10.0)

Dominion (9.4)

Texas Gas (8.2, 4.1)

Freebird (6.1)

CenterPoint (3.0)

Starks (19.2)Liberty (17.6,

18.9)Petal (4.0)

SemGas (5.5)

Unocal Windy Hill (6.0)

Natural (10.0)

Bobcat (12.0,1.5, 24.0)

Dominion (18.0)

Caledonia (11.7, 5.2)

Arizona Natural Gas (3.5)

ANR Pipeline (14.7)

Mississippi Hub (12.0, 15.0)

Leaf River Energy (32.0)

Central NY (13.0)Dominion

(4.4)

Floridian Natural (8.0)

SG Resources (12.0)

Northern Natural(8.5, 2.1, 2.0)

Petal (2.8)

ANR Pipeline(17.0)

Texas Gas (11.3)

Texas Eastern (3.0)

Egan Hub (8.0)

Enstor-Waha Storage (7.2)

Four Mile Creek (8.0)

ANR Pipeline (70.0)

Tres Palacios (36.0)

Black Bayou (15.0)

CIG (7.0)

Copiah (12.2)

Enterprise (10.0)

PetroLogistics (6.0, 5.3, 4.6)

AGL (16.0)Enstor

(30.0)

Steckman Ridge (12.0)

Columbia (6.7)

Tenasda (17.5)

Northern Natural (6.0) Texas Gas

(8.25)Monroe Gas (12.0)

Columbia (5.7)

Pine Prairie (24.0)

Natural (10.0)

Chestnut Ridge (25.0)

Orbit (5.0)

Tarpon Whitetail (8.6)

Bobcat (2.1, 9.3)

EnergySouth (12.0)

Petal (10.0)

Atmos (15.0)

SourceGas (10.4)

Spectra Energy (6.5)

Southeast Gas Storage (24.7)

SG Resources (16.0)

Arlington Storage (7.0,1.4)NFG (8.5)

Mississippi Hub (3.0)

Sempra Energy (2.5)

Cadeville (16.4)

Perryville (15.0)

East Cheyenne (18.9)

Blue Sky (4.4)

Magnum Gas (11.2)

Tricor Ten 22.4)

UGI LNG (0.2, 1.0)

Magnum Gas(42.0)

KM (1.0)

Dominion (0.1)

ANGS/El Paso (20.0)

Turtle Bayou (12.0)

Southern Star (2.6,1.4)

UGI (14.7)

BCR (15.0)

Petal (5.0)

Multifuels (8.0)

Leader One (7.5)

Ryckman Creek (25.0)

CIG (1.0)

Sawgrass (25.0)

Certificated Since 1/1/2005

On The Horizon

Currently Pending

Pre-Filing

Page 29: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 29

U.S.A. Everett, MA : 1.035 Bcfd (GDF SUEZ -

DOMAC)B. Cove Point, MD : 1.0 Bcfd (Dominion -

Cove Point LNG)C. Elba Island, GA : 1.2 Bcfd (El Paso -

Southern LNG)D. Lake Charles, LA : 2.1 Bcfd (Southern

Union - Trunkline LNG)E. Gulf of Mexico: 0.5 Bcfd, (Excelerate

Energy - Gulf Gateway Energy Bridge)F. Offshore Boston: 0.8 Bcfd, (Excelerate

Energy – Northeast Gateway)G. Freeport, TX: 1.5 Bcfd, (Cheniere/Freeport

LNG Dev.)H. Sabine, LA: 2.6 Bcfd (Cheniere/Sabine Pass

LNG)I. Cove Point, MD : 0.8 Bcfd (Dominion –

Cove Point LNG - Expansion)*J. Hackberry, LA: 1.8 Bcfd (Sempra - Cameron

LNG)K. Sabine, LA: 1.4 Bcfd (Cheniere/Sabine Pass

LNG – Expansion)*L. Elba Island, GA: 0.4 Bcfd (El Paso –

Southern LNG –Phase A Expansion)*

CanadaM. Saint John, NB: 1.0 Bcfd, (Repsol/Fort

Reliance - Canaport LNG) MexicoN. Altamira, Tamulipas: 0.7 Bcfd,

(Shell/Total/Mitsui – Altamira LNG)O. Baja California, MX: 1.0 Bcfd, (Sempra –

Energia Costa Azul)

A

B, I

C, L

D

E

29

N

As of August 3, 2010

F

GH,K

O

* Expansion of an existing facility

M

J

US Jurisdiction

FERC MARAD/USCG

North American LNG Import North American LNG Import TerminalsTerminalsExistingExisting

Page 30: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 30

APPROVED - UNDER CONSTRUCTIONU.S.1. Sabine, TX: 2.0 Bcfd (ExxonMobil - Golden Pass)2. Elba Island, GA: 0.5 Bcfd (El Paso - Southern LNG

Expansion)*3. Pascagoula, MS: 1.5 Bcfd (El Paso/Crest/Sonangol - Gulf

LNG Energy LLC)4. Offshore Boston, MA: 0.4 Bcfd (GDF SUEZ- Neptune

LNG)

APPROVED - UNDER CONSTRUCTIONMexico5. Manzanillo, MX: 0.5 Bcfd (KMS GNL de Manzanillo)

APPROVED - NOT UNDER CONSTRUCTIONU.S. - FERC6. Corpus Christi, TX: 1.0 Bcfd (Occidental Energy

Ventures – Ingleside Energy)7. Corpus Christi, TX: 2.6 Bcfd, (Cheniere – Corpus Christi

LNG)8. Corpus Christi, TX : 1.1 Bcfd (4Gas - Vista Del Sol)9. Fall River, MA : 0.8 Bcfd, (Hess LNG/Weaver's Cove

Energy)10. Port Arthur, TX: 3.0 Bcfd (Sempra)11. Logan Township, NJ : 1.2 Bcfd (Hess LNG - Crown

Landing LNG)12. Cameron, LA: 3.3 Bcfd (Cheniere - Creole Trail LNG)13. Freeport, TX: 2.5 Bcfd (Cheniere/Freeport LNG Dev. -

Expansion)*14. Hackberry, LA: 0.85 Bcfd (Sempra - Cameron LNG -

Expansion)*15. Port Lavaca, TX: 1.0 Bcfd (Gulf Coast LNG Partners –

Calhoun LNG)16. Bradwood, OR: 1.0 Bcfd (Northern Star Natural Gas LLC

– Northern Star LNG)17. Baltimore, MD: 1.5 Bcfd (AES Corporation – AES

Sparrows Point)18. Coos Bay, OR: 1.0 Bcfd (Jordan Cove Energy Project) U.S. - MARAD/Coast Guard19. Gulf of Mexico: 1.0 Bcfd (Main Pass McMoRan Exp.)20. Offshore Florida: 1.2 Bcfd (Port Dolphin Energy - Hoëgh

LNG)

Canada21. Rivière-du- Loup, QC: 0.5 Bcfd (Cacouna Energy -

TransCanada/PetroCanada)22. Quebec City, QC : 0.5 Bcfd (Project Rabaska -

Enbridge/Gaz Met/Gaz de France)Mexico23. Baja California, MX : 1.5 Bcfd (Sempra - Energia

Costa Azul - Expansion)

* Expansion of an existing facility

127

30

9

86

11

101 1314

17

3

19

4

21

15

2

As of August 3, 2010

5

22

23

16

20

18

US Jurisdiction

FERC MARAD/USCG

North American LNGNorth American LNGImport TerminalsImport TerminalsApprovedApproved

Page 31: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 31

PROPOSED TO FERC1. Robbinston, ME: 0.5 Bcfd (Kestrel Energy - Downeast

LNG)2. Astoria, OR: 1.5 Bcfd (Oregon LNG)3. Calais, ME: 1.2 Bcfd (BP Consulting LLC)

PROPOSED TO MARAD/COAST GUARD4. Gulf of Mexico: 1.4 Bcfd (TORP Technology - Bienville

LNG)5. Offshore Florida: 1.9 Bcfd (GDF SUEZ - Calypso LNG)

31

1

5

2

4

As of August 3, 2010

3

US Jurisdiction

FERC MARAD/USCG

North American LNG Import TerminalsNorth American LNG Import TerminalsProposedProposed

Page 32: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 32

Market Knows Best

FERC is not the market

FERC will present a “menu” of infrastructure solutions that are:

In the public interest

Will cause the least environmental impact

Will be safe

The market is in the best position to select the infrastructure projects that get built

Page 33: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 33

Conclusions

The Commission process has benefited all stakeholders in natural gas projects

More needs to be doneTurn opposition into understanding

Continue to refine the siting process

More infrastructure is comingAlaska

Pipes from non-traditional sources

Hydrokinetics

Electric transmission

Page 34: Michael J. McGehee Director, Division of Pipeline Certificates Office of Energy Projects Federal Energy Regulatory Commission San Antonio, Texas September

Federal Energy Regulatory Commission 34

Contact Info:

Michael J. McGehee

Director, Division of Pipeline Certificates

Office of Energy Projects

Federal Energy Regulatory Commission

[email protected]

202-502-8962