LNG’s Role in DeliveringNatural Gas for Florida Consumers

LNG’s Role in Future US Gas Supply (Tcf)

0

5

10

15

20

25

30

35

AlaskaLNGNonassociated UnconventionalAll Other Production

Incremental Supply

(2002-2025)

All Other Production

Source: DOE

Why is LNG Important Now?

• Natural gas use is expected to increase by 38% by 2025

• Traditional North American producing areas will provide only 75% of US gas needs through 2025

• LNG is forecast to supply over 15% of the US demand in 2025

Source: DOE and National Petroleum Council

History of LNG• Natural gas was considered an unwelcome by-product of

crude oil until around 1920, when it was recognized as a source of valuable fuels such as propane and butane– 1941: First liquefaction plant in Cleveland, Ohio– 1959: First LNG transport by ship to UK– 1960: First base-load liquefaction plant in Algeria– 1964: Large-scale shipping between Algeria and Europe– 1969: LNG transported from Alaska to Japan

LNG Today• The LNG business is rapidly growing worldwide with

more and more plants being built or under development• Currently there are:

– 15 LNG Liquefaction Plants operating in 12 countries– 38 LNG Regasification Plants operating in 14

countries

Today’s Two Gas Pipelines to Florida From the Gulf Coast

Florida Gas Transmission (2.2 Bcf/d)

Gulfstream Natural Gas (1.1 Bcf/d)

Southern Natural Gas/South Georgia

2003 Gas Consumption in FloridaAverage daily consumption was 1,614,000 mmBtuPeak daily delivery capacity is 3,172,000 mmBtu

EIA data for 2003

Utility Generation

35%

Commercial 15%

Residential 23%

Industrial 27%

Stable Baseload Usage

Florida’s Projected Increase in Natural Gas Demand

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

MM

cf/d

ay

LNG TerminalGulfstream (uncontracted prior to 2005)

Generation Demand

Note: Load growth based on summary of Florida utility 2004 Ten Year Site Plan future natural gas-fired unit additions (combined-cyle only)as filed and updated with the FPSC. Incremental fuel load is based on 7,500 Btu/kwh heat rate and 80% load factor.

LNG Safety

• More than 33,000 LNG carrier voyages covering 60 million miles over a 40-year period without a major accident

FPLR / El Paso Project Overview

Delivery Point: into FGT (26” and 18” pipelines)

41 miles

87 miles