The proposed Gulf LNG Liquefaction Project will be constructed in two phases:

Phase I will consist of a single liquefaction train expected to have a base LNG production capacity of approximately 5 million tonnes per annum (MTPA).  The LNG produced by this train will be stored in the terminal’s two existing LNG storage tanks which have a combined capacity of 320,000 cubic meters (equivalent to 6.6 billion standard cubic feet of natural gas).  The stored LNG will then be loaded onto ships berthed at the existing dock facility, which is currently permitted to receive up to 170,000 cubic meter LNG vessels and designed to handle vessels with capacities of up to 250,000 cubic meters. The project will include increasing the permitted ship size to 208,000 cubic meters.

Phase II of the project will consist of a second liquefaction train identical in size to the first train, providing a total project base level liquefaction capacity of 10 MTPA, which GLLC expects could be exceeded by more than 10% once the project is in operation.

Both phases of the Gulf LNG Liquefaction Project will take advantage of additional existing terminal infrastructure, including electrical and mechanical utilities, control buildings, and the 5-mile 36-inch diameter Pipeline (see Import Terminal).

The Gulf LNG Liquefaction Project will enjoy many advantages as a brownfield development, including:

• Ability to utilize significant existing infrastructure
  • Storage tanks: Longest critical path item in LNG terminal projects
  • Marine jetty, header pipeline, support facilities, various utilities already in place

• Typical construction risks significantly minimized
  • General project location is geotechnically proven, giving high confidence for civil design (e.g. foundations, piles, “cut and fill” work, etc.)
  • Recent successful construction execution model can be duplicated for managing materials and equipment, labor force, etc.
  • Power supply readily available to import (for construction and permanent operations)

• Successful track record with environmental permitting
  • Large data bank of environmental surveys

• High confidence in terminal operations
  • Ability to expand on existing group of experienced senior operators
  • Proven marine access from a working shipping channel with experienced bar pilots

• Favorable building environment in Gulf of Mexico
  • Highly industrial area with strong network of construction support services