1. FERC 1 APGA Annual Conference Halifax, Nova Scotia FERC Priorities in an Evolving Natural Gas Market Suedeen G. Kelly Commissioner, FERC August 2, 2005

2. FERC 2 How Much Natural Gas Is Out There? Total World Gas Reserves as of 1/1/04: 6,079 Trillion Cubic Feet Source: EIA, Oil and Gas Journal

3. FERC 3 Alan Greenspan Chairman 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.”

4. Economic Oversight – Access to LNG Terminal A Open Access At Delivery of Liquid to Terminal LNG Suppliers LNG Buyers A B B Open Access At Delivery of Vapor into Interstate Pipeline System Liquid to Vapor Flow FERC 4

5. 23 25 A 3 4 44 17 8 27 15 29 28 45 46 54 14 52 53 B 37 35 1 19 47 30 12 55 US Jurisdiction FERC US Coast Guard 49 48 * US pipeline approved; LNG terminal pending in Bahamas ** These projects have been approved by the Mexican and Canadian authorities 50 21 10 36 20 41 16 24 42 7 C 2 D 18 11 31 32 13 5,26 9 6 40 33 34 22 39 E CONSTRUCTED A. 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 FERC 1. 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 GUARD 13. Port Pelican: 1.6 Bcfd (Chevron Texaco) 14. Louisiana Offshore : 1.0 Bcfd (Gulf Landing - Shell) PROPOSED TO FERC 15. 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 GUARD 27. 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 TERMINALS 51. 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 Bcfd 58. Topolobampo, MX: 0.5 Bcfd Existing, Proposed and Potential North American LNG Terminals Office of Energy Projects 56 As of July 21, 2005 51 57 58 43 38

6. FERC 6 Maximum LNG Deliverability Growth ++++

7. FERC 7 US Natural Gas Balance

8. FERC 8 Recent LNG Approval: Ingleside Energy Continues FERC’s LNG Policy Siting and Facilities are Optimal Will Operate Like a Cogeneration Facility

9. FERC 9 Challenges Presented by LNG Gas Quality & Interchangeability Safety and Security

10. FERC 10 Challenges Presented Gas Quality and Interchangeability Definitions Examples Current Events –Evolving Standards –Cove Point and Washington Gas

11. FERC 11 Challenges Presented Safety 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

12. FERC 12 Northwest (113) ANR (107,143) Ocean Express (842) Cheyenne Plains (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 Total 975 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)

13. FERC 13 McMoRan (1,500) Compass Pass (1,000) Algonquin (800) Pearl Crossing (2,000) Golden Pass (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 Projects Pending (MMcf/d) July 2005 16.6 BCF/D Total 1,277 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)

14. FERC Major Pipeline Projects On The Horizon (MMcf/d) July 2005 15.6 BCF/D Total 6,195 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(KM Interstate)(700) CenterPoint (500) Natural (232) Alaska (4,000)

15. FERC 15 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 Horizon Currently Pending Sabine (40.0) Storage Projects (Capacity in Bcf) July 2005 Falcon Worsham-Steed (20.0) Unocal Windy Hill (6.0)