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Jordan Cove Energy Project – LNG Development
Vern Wadey, Vice President Business Development
Peters & Co. 2013 Energy Conference
The Ritz-Carlton, Toronto, September 10 – 12, 2013
Forward-Looking Information Advisory
Certain information contained in this presentation constitutes forward-looking information under applicable Canadian
securities laws. All information, other than statements of historical fact, which addresses activities, events or
developments that we expect or anticipate may or will occur in the future, is forward-looking information. Forward-
looking information typically contains statements with words such as "may", "estimate", "anticipate", "believe", "expect",
"plan", "intend", "target", "project", "forecast" or similar words suggesting future outcomes or outlook. Forward-looking
statements in this presentation include, but are not limited to, statements with respect to the timing of the receipt of
regulatory approvals, securing customers, securing financing, commencement of construction, and the in-service date
of the Jordan Cove Energy Project and the Pacific Connector Gas Pipeline. The risks and uncertainties that may affect
the operations, performance, development and results of our businesses include, but are not limited to, the following
factors: our ability to successfully implement our strategic initiatives and achieve expected benefits; levels of oil and
gas exploration and development activity; the status, credit risk and continued existence of contracted customers; the
availability and price of capital; the availability and price of energy commodities; the availability of construction services
and materials; fluctuations in foreign exchange and interest rates; our ability to successfully obtain regulatory
approvals; changes in tax, regulatory, environmental, and other laws and regulations; competitive factors in the
pipeline, NGL and power industries; operational breakdowns, failures, or other disruptions; and the prevailing
economic conditions in North America. Additional information on these and other risks, uncertainties and factors that
could affect our operations or financial results are included in our filings with the securities commissions or similar
authorities in each of the provinces of Canada, as may be updated from time to time. Although we believe the
expectations conveyed by the forward-looking information are reasonable based on information available to us on the
date of preparation, we can give no assurances as to future results, levels of activity and achievements. Readers
should not place undue reliance on the information contained in this presentation, as actual results achieved will vary
from the information provided herein and the variations may be material. We make no representation that actual results
achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the
forward-looking statements contained herein are made as of the date hereof, and, except as required by law, we do not
undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new
information, future events or otherwise. We expressly qualify any forward-looking information contained in this
presentation by this cautionary statement.
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Veresen – Corporate Snapshot
Midstream
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Pipelines
The Alliance Pipeline system is one of our cornerstone assets and we own 100% of the Alberta Ethane Gathering System.
Includes our interest in Aux Sable and associated assets; 100% owned and operated Hythe/Steeprock gas processing facilities and gathering system.
Power
We have grown our power generation business to nearly 1000 MW of operated capacity in the last three years.
We are focused on high-quality, strategically-located energy infrastructure
assets which play a key role in meeting North America’s energy needs.
LNG
Our Jordan Cove Energy Project began as an import terminal and, subsequently, has been converted to an export terminal proposal.
Jordan Cove has the Essential Characteristics for an
Optimal Export Facility
Diversified gas supply from both Canada and the United States, primarily through accessed through existing gas pipeline systems
Competitive tolling business model
Advanced regulatory status
Advantaged port; short access to open sea and shortest travel time to end use markets
Dedicated power plant
Strong community, labour and political support
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Project Overview: Jordan Cove Energy Project
6 MMTPA facility expandable to 9 MMTPA
320-acre site, two 160,000 m3 containment LNG tanks, marine facility and
power plant (420 MW)
No changes to earlier, previously FERC approved, marine facilities, LNG
tanks or site grading
Liquefaction process requires FERC certification; target certification 2014
100% owned by Veresen
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Project Overview: Pacific Connector Pipeline
Initial design capacity of 1.2 Bcf/d
234-mile, 36-inch diameter pipeline (1440 psig MAOP)
No changes to earlier, previously FERC approved, pipeline design / ROW
Owned equally by Veresen and Williams
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Pacific Connector Pipeline
Coos Bay is the Best Port for Exports of North American
LNG to Asia Pacific Markets
Existing industrial site
Hold local land use permits for terminal and pipeline
Development is highly supported by elected state-legislative
representatives and business leaders
Established history in Oregon – nearly 10 years
Thousands of construction and permanent jobs created: $42 million
in annual operating taxes; Project Labour Agreement in place
Jordan Cove is the foundation for redevelopment and modernization
of the International Port of Coos Bay – administrative arm of the
State of Oregon
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Ideal Location on West Coast of North America
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International Port of Coos Bay:
U.S. Federal maintained navigation channel
Coos Bay area local population of 25,000
Excellent access by air, rail, sea and interstate highway
1.5 hour tug assisted transit along clear, open 7-mile channel
Short egress to and from the Jordan Cove slip to the Pacific Ocean
DOE
Order of
Processing LNG Facility Capacity
FERC
Application
Status
Non-FTA
Application Location
Completed
Sabine Pass
Liquefaction 2.2 bcf/d Approved Approved Gulf Coast
Completed
Freeport LNG
Expansion 1.4 bcf/d Filed Approved Gulf Coast
Completed Lake Charles 2.0 bcf/d
NEPA
Pre-filing Approved Gulf Coast
1 CovePoint 1.0 bcf/d Filed Under Review East Coast
2
Freeport LNG
Expansion 1.4 bcf/d Filed Under Review Gulf Coast
3 Cameron LNG 1.7 bcf/d Filed Under Review Gulf Coast
4 Jordan Cove 0.8 bcf/d Filed Under Review West Coast
Well-Positioned with the Department of Energy
Source: DOE web site 9
10.5 bcf/d
10
Dec
2011
Q3
2014
Received DOE
Export License
to FTA
countries
JCEP/ PCGP
FERC
NEPA Filing
FERC
issues
order
FID
COD
LNG
Commissioning
and Operations
Q4
2014
Q4 2018/
Q1 2019
Notice to
Proceed –
construction
starts
Estimated Certification & Development Schedule
Feb/June
2012
Q1
2014
Issuance
of DOE
Export
License to
non-FTA
countries
Q2
2013
JCEP/PCGP
File Formal
FERC
Application
Issue
power
plant siting
certificate
Q2
2014
Highly Competitive with Unique Advantages
11 Source: Terminal websites, DOE
Japan as comparative market
~9 shipping
days to Asia
(4300 nmi)
~9 shipping
days to Asia
USGC LNG
~22 shipping days to
Asia (9,200 nmi) plus
Panama Canal Costs
USGC LNG
~9 shipping
days to Europe Australia LNG
~7 to 9 shipping
days to Asia
(3100 - 4300 nmi)
Cove Point
Cameron
Lake Charles
Sabine Pass
Freeport
Kitimat /
Prince Rupert
Jordan Cove’s shipping
costs are a significant
economic advantage Malin Hub
Jordan Cove
Diversified gas supply → Existing pipelines → Ideal access to Asia
Jordan Cove – Key Next Steps
Support regulatory process through DOE and FERC
approvals
Enter into Heads of Agreements with Asian customers
Finalize financing strategy
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Jordan Cove – An Advantaged Project
Provide stable, long-term cash flow for Veresen
Offers Canadian and U.S. Rockies producers an LNG export
site tied to existing gas facilities, gas processing and pipeline
infrastructure
Terminal and pipeline offered on tolling capacity basis, providing
true connectivity for North American gas production to Asian
LNG prices
Ideal LNG export location at Coos Bay, Oregon; significant
local support
Advanced regulatory and engineering process
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