FERC
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APGA Annual Conference Halifax, Nova Scotia
FERC Priorities in an Evolving Natural Gas Market
Suedeen G. KellyCommissioner, FERC
August 2, 2005
FERC
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How Much Natural GasIs Out There?
Middle East42%
North America4%
Western Europe3%
Central & South America
4%
Asia & Oceania7%
Africa7%
Eastern Europe & Former U.S.S.R.
33%
Total World Gas Reserves as of 1/1/04: 6,079 Trillion Cubic Feet
Source: EIA, Oil and Gas Journal
FERC
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Alan GreenspanChairman of the Board of Governors
of the Federal Reserve System.
July 20, 2005“...the current and prospective expansion of U.S. capability to import liquefied natural gas will help ease longer-term natural gas stringencies and perhaps bring natural gas prices in the United States down to world levels.”
June 10, 2003“...we cannot, on the one hand, encourage the use of environmentally desirable natural gas in this country while being conflicted on larger imports of LNG.”
Economic Oversight – Access to LNG Terminal
AOpen Access At
Delivery of Liquid to Terminal
LNGSuppliers
LNGBuyers
AB
BOpen Access At
Delivery of Vapor into Interstate Pipeline
System
Liquid to Vapor Flow
FERC
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FERC
23
25
A
3 4
44
17
8
2715
29
28
4546
54
14
52
53
B
37
35
1
19
47
3012
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US Jurisdiction
FERC US Coast Guard
4948
* US pipeline approved; LNG terminal pending in Bahamas** These projects have been approved by the Mexican and Canadian authorities
50
21
1036204116
24
42
7C
2D
1811
31
3213
5,269
6
40
3334
2239
E
CONSTRUCTEDA. Everettt, MA : 1.035 Bcfd (Tractebel - DOMAC)B. Cove Point, MD : 1.0 Bcfd (Dominion - Cove Point
LNG)C. Elba Island, GA : 0.68 Bcfd (El Paso - Southern
LNG)D. Lake Charles, LA : 1.0 Bcfd (Southern Union -
Trunkline LNG)E. Gulf of Mexico: 0.5 Bcfd (Gulf Gateway Energy
Bridge - Excelerate Energy)
APPROVED BY FERC1. Lake Charles, LA: 1.1 Bcfd (Southern Union -
Trunkline LNG) 2. Hackberry, LA : 1.5 Bcfd (Sempra Energy)3. Bahamas : 0.84 Bcfd (AES Ocean Express)*4. Bahamas : 0.83 Bcfd (Calypso Tractebel)*5. Freeport, TX : 1.5 Bcfd (Cheniere/Freeport LNG
Dev.)6. Sabine, LA : 2.6 Bcfd (Cheniere LNG)7. Elba Island, GA: 0.54 Bcfd (El Paso - Southern
LNG)8. Corpus Christi, TX: 2.6 Bcfd (Cheniere LNG)9. Corpus Christi, TX : 1.0 Bcfd (Vista Del Sol – ExxonMobil)10. Fall River, MA : 0.8 Bcfd (Weaver's Cove
Energy/Hess LNG)11. Sabine, TX : 1.0 Bcfd (Golden Pass -
ExxonMobil)12. Corpus Christi, TX: 1.0 Bcfd (Ingleside Energy -
Occidental Energy Ventures)
APPROVED BY MARAD/COAST GUARD13. Port Pelican: 1.6 Bcfd (Chevron Texaco)14. Louisiana Offshore : 1.0 Bcfd (Gulf Landing -
Shell)
PROPOSED TO FERC15. Long Beach, CA : 0.7 Bcfd
(Mitsubishi/ConocoPhillips - Sound Energy Solutions)
16. Logan Township, NJ : 1.2 Bcfd (Crown Landing LNG - BP)
17. Bahamas : 0.5 Bcfd, (Seafarer - El Paso/FPL )18. Port Arthur, TX: 1.5 Bcfd (Sempra)19. Cove Point, MD : 0.8 Bcfd (Dominion)20. LI Sound, NY: 1.0 Bcfd (Broadwater Energy -
TransCanada/Shell)21. Pascagoula, MS: 1.0 Bcfd (Gulf LNG Energy
LLC)22. Bradwood, OR: 1.0 Bcfd (Northern Star LNG -
Northern Star Natural Gas LLC)23. Pascagoula, MS: 1.3 Bcfd (Casotte Landing -
ChevronTexaco)24. Cameron, LA: 3.3 Bcfd (Creole Trail LNG -
Cheniere LNG)25. Port Lavaca, TX: 1.0 Bcfd (Calhoun LNG - Gulf
Coast LNG Partners)26. Freeport, TX: 2.5 Bcfd (Cheniere/Freeport LNG
Dev. - Expansion)
PROPOSED TO MARAD/COAST GUARD27. California Offshore: 1.5 Bcfd (Cabrillo Port - BHP
Billiton)28. So. California Offshore : 0.5 Bcfd (Crystal
Energy)29. Louisiana Offshore : 1.0 Bcfd (Main Pass
McMoRan Exp.)30. Gulf of Mexico: 1.0 Bcfd (Compass Port -
ConocoPhillips)31. Gulf of Mexico: 2.8 Bcfd (Pearl Crossing -
ExxonMobil)32. Gulf of Mexico: 1.5 Bcfd (Beacon Port Clean
Energy Terminal - ConocoPhillips)33. Offshore Boston, MA: 0.4 Bcfd (Neptune LNG -
Tractebel)34. Offshore Boston, MA: 0.8 Bcfd (Northeast
Gateway- Excelerate Energy)
POTENTIAL SITES IDENTIFIED BY PROJECT SPONSORS
35. Coos Bay, OR: 0.13 Bcfd (Energy Projects Development)
36. Somerset, MA: 0.65 Bcfd (Somerset LNG)37. California - Offshore: 0.75 Bcfd (Chevron
Texaco)38. Pleasant Point, ME : 0.5 Bcf/d (Quoddy Bay,
LLC)39. St. Helens, OR: 0.7 Bcfd (Port Westward LNG
LLC)40. Galveston, TX: 1.2 Bcfd (Pelican Island - BP)41. Philadelphia, PA: 0.6 Bcfd (Freedom Energy
Center - PGW)42. Astoria, OR: 1.0 Bcfd (Skipanon LNG - Calpine)43. Robbinston, ME: 0.5 Bcfd (Downeast LNG -
Kestrel Energy/Dean Girdis)
CANADIAN APPROVED AND POTENTIAL TERMINALS
44. St. John, NB : 1.0 Bcfd (Canaport - Irving Oil)**45. Point Tupper, NS 1.0 Bcf/d (Bear Head LNG -
Anadarko)**46. Quebec City, QC : 0.5 Bcfd (Project Rabaska -
Enbridge/Gaz Met/Gaz de France)47. Rivière-du- Loup, QC: 0.5 Bcfd (Cacouna
Energy - TransCanada/PetroCanada)48. Kitimat, BC: 0.61 Bcfd (Galveston LNG)49. Prince Rupert, BC: 0.30 Bcfd (WestPac
Terminals)50. Goldboro, NS 1.0 Bcfd (Keltic Petrochemicals)
MEXICAN APPROVED AND POTENTIAL TERMINALS51. Altamira, Tamulipas : 0.7 Bcfd
(Shell/Total/Mitsui)**52. Baja California, MX : 1.0 Bcfd (Sempra)** 53. Baja California - Offshore : 1.4 Bcfd (Chevron
Texaco)**54. Lázaro Cárdenas, MX : 0.5 Bcfd
(Tractebel/Repsol)55. Puerto Libertad, MX: 1.3 Bcfd (Sonora Pacific
LNG)56. Offshore Gulf, MX: 1.0 Bcfd (Dorado -
Tidelands)57. Manzanillo, MX: 0.5 Bcfd58. Topolobampo, MX: 0.5 Bcfd
Existing, Proposed and Potential North American LNG Terminals
Office of Energy Projects
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As of July 21, 2005
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57
58
4338
FERC
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05
10152025
303540455055
Bcf
per
Day
Potential
Proposed - FERC &Coast Guard
Approved byMARAD/CoastGuard Approved by FERC
Constructed
Maximum LNGDeliverability Growth
+ + + +
FERC
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US Natural Gas Balance
-10
0
10
20
30
40
50
60
70
80
90
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Years (beginning in 2000)
Volu
me (
Bcf per
day)
Total Production Canadian ImportsNet Imports from Mexico LNG ImportsAlaska (to Lower 48) Demand - US
FERC
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Recent LNG Approval:Ingleside Energy
• Continues FERC’s LNG Policy
• Siting and Facilities are Optimal
• Will Operate Like a Cogeneration
Facility
FERC
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Challenges PresentedGas Quality and
Interchangeability
• Definitions
• Examples
• Current Events
– Evolving Standards
– Cove Point and Washington Gas
FERC
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Challenges PresentedSafety and Security
• Major challenge in LNG program• Onshore and offshore reviews of
LNG proposals• Oversee construction• Monitoring and periodic
inspections of LNG facility for its life
FERC
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Northwest(113)
ANR(107,143)
Ocean Express(842)
CheyennePlains (560,170)
Calypso(832)
Discovery (150)
Transwestern(375)
Trunkline(1,500)
Cheniere Sabine (2,600)
Trunkline (200)
Questar (102)
Petal (600)
Major Pipeline Projects Certificated (MMcf/d)
January 2004 to July 2005
17.7 BCF/D Total975 Miles Cheniere Corpus Christi
(2,600)
CIG (118)
TransColorado (125, 300)
WIC (116)
Algonquin (140)
Transcontinental (105)
CenterPoint(113)
CIG (105)
Vista Del Sol(1,100)
Golden Pass (2,000)
El Paso(502)
Mill River(800)
San Patricio(1,000)
Rendezvous(300)
FERC
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McMoRan (1,500)
Compass Pass(1,000)
Algonquin(800)
Pearl Crossing (2,000)
GoldenPass
(2,000)
Entrega(EnCana)
(1,500) Logan Lateral
(Texas Eastern)(900)
WIC (350)
Seafarer Pipeline(El Paso) (800)
Dominion Southern(200)
Northern Border(Chicago III)
(130)
Major Pipeline ProjectsPending (MMcf/d)
July 2005
16.6 BCF/D Total1,277 Miles
Dominion(700)
Cameron(1,500)
Columbia (172)
Cheniere Creole Trail (3,300)
ANR(168)
Midwestern(120)
Point Comfort(1,000)
Cypress Pipeline(Southern Natural) (500)
FERC
Major Pipeline Projects On The Horizon (MMcf/d)
July 2005
15.6 BCF/D Total6,195 Miles
Maritimes Phase IV (1,563)Northwinds Pipeline
(NFG) (500)Freedom Trail (Tennessee)
(150)Dracut Interconnect
(Tennessee) (250)Brookhaven Lateral
(Iroquois)(50)Potomac Expansion
(Transco)(150)
Coronado (500)Phoenix Lateral (Transwestern) (500)
Piceance to Cheyenne (KM Interstate) (500)Advantage Southern (KM Interstate) (330)
Silver Canyon Project (KM Interstate) (750)KM West Texas (KM Interstate) (300)
Wheatland Expansion (KM Interstate) (80)Western Frontier (So. Star)(540)
Kern River California Expansion (200)Kern River Expansion (500)Questar Expansion (160,100)
Trailblazer (100)Panhandle Eastern (500)Vector Expansion (500)
Trunkline (400)KM LNG (1,000)
Carthage Pipeline(KMInterstate)(700)
CenterPoint (500)Natural (232)
Alaska (4,000)
FERC
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Caledonia (11.7)
Falcon MoBay (20.0)
County Line (6.0)Copper Eagle
(3.2)EnCana (8.0)
Bluewater(27.0)
Saltville(5.8)
Columbia (12.4)
Pine Prairie (24.0)
Natural (10.0)
Dominion (9.4)
Texas Gas (8.2)
Freebird (6.1)CenterPoint (15.0)
Starks (19.2)Falcon Hill-Lake (10.4)
Liberty (17.0) Petal (5.0)
Port Barre (10.5)
SemGas (5.5)
Certificated Since 1/1/04
On The HorizonCurrently Pending
Sabine(40.0)
Storage Projects(Capacity in Bcf)
July 2005
Falcon Worsham-Steed (20.0)
Unocal Windy Hill(6.0)