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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.
0
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
0
20
40
60
80
100
120
140
160
Jan
Feb
Mar
Apr
May Ju
nJu
lA
ugS
ep Oct
Nov
Dec Ja
nFe
bM
arA
prM
ay Jun
Jul
Aug
Sep Oct
Nov
Dec Ja
nFe
bM
arA
prM
ay Jun
Jul
Aug
Sep Oct
Nov
Dec Ja
nFe
bM
arA
prM
ay Jun
Jul
Aug
2008 2009 2010 2011
000
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
Who Is FERC?