Open House - July 1, 2015

Corpus Christi Liquefaction Expansion – Stage 3 Project

Status of Currently-Authorized Liquefaction Project

FERC authorized the Project on Dec. 30, 2014

Construction at the

Terminal started in Feb. 2015

Pipeline construction

targeted for 2017 Project in service in

2018

Corpus Christi Liquefaction Expansion Stage 3 LNG Facility

• Located within dredged material placement area for currently authorized Liquefaction Project

• Two additional LNG liquefaction trains (five trains total for the two projects)

• One full-containment LNG storage tank (four tanks total for the two projects)

• No new marine facilities

• Increase in LNG vessel calls from 300 to 400 annually

Corpus Christi Liquefaction Expansion Stage 3 Project Schedule

Key Milestone Activities Anticipated Schedule

Beginning of FERC Pre-Filing Process June 2015

Submittal of Natural Gas Act Sections 3 and 7(c) Application January 2016

FERC Issues Authorization of Stage 3 Project March 2017

Commence Terminal Construction May 2017

Commence Pipeline Construction March 2018

Project In Service Early 2021

Corpus Christi Liquefaction Expansion - Stage 3 Project

Corpus Christi Liquefaction Expansion -

Stage 3 Project

Corpus Christi Liquefaction

(Original Project In Construction)

Corpus Christi Liquefaction Expansion Stage 3 Plot Plan

Stage 3 Pipeline

• 22 miles long, 42 inches in diameter

• Parallel to 48-inch diameter pipeline being constructed for currently-authorized

Liquefaction Project

• Will connect

Terminal with

several interstate

and intrastate

pipelines

• Two electric-driven

compressors to be

added to Sinton

Compressor Station

What Is Liquefied Natural Gas (LNG)?

LNG is natural gas that has been super-cooled to

-260°F and changed from gas to 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

Becomes lighter than air when vaporized

ConocoPhillips Optimized CascadeSM LNG Train

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

• Cheniere, Sabine Pass Liquefaction, under construction

• Angola LNG, under construction

• Currently under construction in Australia

– QCLNG

– Gladstone LNG

– Wheatstone LNG

– Australia Pacific LNG

3 Sabine Pass Liquefaction Construction

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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2

3

4

5

7

6

Benefits to the Public Interest

Stimulates local and regional economies • Direct creation of 2,000 to 3,000 engineering and construction jobs

Improves national balance of annual trade by between $9.8B and $15.8B (combined Liquefaction Project and Stage 3 Project)

Supports domestic natural gas productive capacity and promotes stability in natural gas pricing

Promotes liberalization of the global natural gas trade through fostering a global, liquid gas market

Advances national security of U.S. allies through diversification of global natural gas supplies

Potential to displace oil (and coal) for power generation applications, resulting in reduced global CO2 emissions

Stage 3 Project – Minimal Environmental Impacts

Majority of Stage 3 Project LNG Facilities to be developed within dredged material placement area approved for the Liquefaction Project.

Stage 3 Project will share marine facilities with the Liquefaction Project.

No new shoreline impacts. Stage 3 Pipeline to be located parallel to and share right-of-way with

currently authorized pipeline, thereby minimizing project footprint. Stage 3 Pipeline route avoids sensitive habitats. Minimal wetland

impacts. No impacts to Threatened or Endangered Species. No impacts to cultural resources.

LNG Full Containment Storage Tank

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

Use “boil-off” gas as onboard fuel

Many safety features for cargo containment & fire prevention

Ship’s Hull

Water Ballast

Ship’s Inner Hull Secondary Insulation

Secondary Membrane

Primary Membrane

Primary Insulation

LNG Safety – Design Parameters

Plant Design

• Materials and equipment selection

• Gas, temperature, UV/IR sensors with automated shutdown

Zero Leak Tolerance

Thermal Exclusion and Vapor Dispersion Zones

• Injurious/hazardous levels contained onsite

Marine Safety/Security Zones

• Prevent collisions with LNG vessels

• Restricted access around LNG vessels

Routine Maintenance

Procedures and Training

• Written operating, safety, security and emergency procedures

Regulations and Oversight

• Oversight both by DOT and FERC

• Routine inspections

C

Western Canada

Northern Rockies

Western Rockies

Green River Basin

Gulf Coast

Eastern U.S.

Permian

Mid Continent

San Juan

East Central Texas

Gulf of Mexico

U.S. Gas Pipeline System Gulf Coast-centered transmission system reaches all US markets

Corpus Christi

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 20426

www.ferc.gov

Public Inquiries

1-866-208-3372

customer@ferc.gov

Who Is FERC?