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A scale representation of the Bradwood Landing terminal and LNG carrier looking to the west from Puget Island, WA towar PowerPoint Presentation
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A scale representation of the Bradwood Landing terminal and LNG carrier looking to the west from Puget Island, WA towar

A scale representation of the Bradwood Landing terminal and LNG carrier looking to the west from Puget Island, WA towar

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A scale representation of the Bradwood Landing terminal and LNG carrier looking to the west from Puget Island, WA towar

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    2. 2

    3. What is LNG? Liquefied Natural Gas LNG is natural gas, cooled to -260 F to make its transportation easier and cheaper. 3

    4. 4 LNG safety facts LNG is safe: LNG is non-polluting. LNG is not stored under significant pressure and is not explosive. LNG is odorless, non-toxic and non-corrosive. LNG is lighter than water and natural gas (its vapor form) is lighter than air above -160 F.

    5. Safety first: an industry history LNG has a remarkable safety record worldwide: More than 40 years of safe operations at LNG-receiving facilities Not a single serious injury to a member of the general public More than 40 LNG-receiving terminals operating around the globe. Not one has had an accident affecting the general public Many of these facilities are located in densely populated areas in Europe, Asia and the U.S. Japan & Korea have imported most of their natural gas in the form of LNG for the past quarter-century. 5

    6. 6 LNG in the U.S. Five import terminals operate in the Eastern and Southern U.S. Everett, Massachusetts Cove Point, Maryland Elba Island, Georgia Lake Charles, Louisiana Gulf Gateway Energy Bridge, Gulf of Mexico

    7. LNG is not new to the Northwest Portland and Newport, Oregon There are two peak-shaving LNG storage facilities in Oregon, which are single containment facilities. They provide natural gas during periods of peak consumer demand. Portland, Oregon (GASCO) Owner: Northwest Natural Size: 0.6 Bcf Year built: 1969 Located five miles north of downtown Portland. Newport, Oregon Owner: Northwest Natural Size: 1.0 Bcf Year built: 1979 Located on a point of industrial land that juts into Yaquina Bay.

    8. Supply & Demand 8

    9. North America National Gas Demand

    10. US National Gas Demand

    11. Imported Gas Remains Important to Supply Mix

    12. The Pacific NW needs additional supplies of natural gas 12 There have been nine independent assessments of regional and North American gas supply and demand within the past two years. Their conclusions: the region needs natural gas supplies

    13. The facts of PNW gas supply

    14. Forecast of Canadian supply

    15. New pipeline will carry gas east

    16. More gas-fired power plants and wind turbines are being built

    17. but gas is providing more actual power

    18. Regional gas utilities agree on supply need In January 2008, the CEOs of NW Natural, Cascade Natural Gas and Avista Corp. wrote Gov. Kulongoski on the pressing need for additional supplies of natural gas. They cited the following facts: Since 2000, NW regional wholesale natural gas prices have risen 200%. Gas is the only immediately available and reliable way to meet our regions growing demand for electricity, while reducing greenhouse gas emissions. An LNG terminal in Oregon would increase access and improve long-term reliability of natural gas supply and diversify supply sources to help keep costs competitive. 18

    19. Pacific Northwest Gas Demand - Increasing .while PNW demand continues to increase

    20. Oregon and Washingtons growing demand for natural gas supply and demand 20 Customer Growth According to utility projections, the number of Oregon utility core market natural gas customers will grow over the next 20 years at an average annual compounded rate of 2.4%, with a cumulative increase of 66.2% or by 478,674 customers through 2028. Washingtons utilities project the number of their core market natural gas customers to grow at an average annual compounded rate of 2.25%, with a cumulative increase of 55.2% or by 626,962 customers over the same period. Demand Growth Utility core market annual demand over a 20-year forecast period is expected to experience cumulative increases of approximately 40 - 50% in Oregon and Washington, representing an additional demand of roughly 30 Bcf in Oregon and 66 Bcf in Washington. (Based on utility Integrated Resource Plans already filed with Oregon and Washingtons public utility commissions ) Over the same period, peak day demand in Oregon and Washington is forecasted to increase by 35% and 50%, representing a cumulative increase of 0.35 Bcf/d and 0.78 Bcf/d, respectively.

    21. The demand and supply dynamics on the previous slide will result in the following projected shortfalls in available natural gas unless additional supplies are made available to the region. Supply Shortfalls All of Oregons and Washingtons natural gas utilities conclude that currently committed supply and capacity resources are inadequate to serve future peak day natural gas demand. NW Natural foresees shortfalls as early as the winter of 2008-09. Cascade Natural Gas projects shortfalls on its system in the 2010-11 winter heating season. Avista states that it will face peak day deficiencies in Oregon by the 2011-12 winter and in Washington, by the 2014-15 winter heating season. Puget Sound Energy concludes that its currently committed resources will become inadequate to serve its peak day (Washington) natural gas requirements beginning with the 2011-12 winter heating season. 21 Oregon and Washingtons growing demand for natural gas looming shortfalls

    22. PNW Supplies Remain Flat WCSB exports are projected to decline at a similar rate to Rockies production increase. The Pacific Northwest will have no increase in natural gas supply sources...

    23. Natural Gas Volatility and Price Natural gas prices have experienced unprecedented volatility

    24. Direct supply will help lower costs No one will pay higher prices for imported LNG. The price in the local market is set in the local market. Whatever the cost of producing and shipping LNG, the supplier will have to sell at local prices. Additional supply options will help keep prices down.

    25. US production remains steady

    26. Cost Curve Based on 2008 Costs and Volumes

    27. Shale gas can fill immediate supply gap, but at a higher cost 27

    28. LNG can help meet ORs energy needs Liquefied Natural Gas must be considered in the context of diversifying and shoring up energy supplies for Oregon and the Pacific NW and the potential for LNG to help reduce over-reliance on other sources of energy, especially coal and hydropower which have other environmental impacts. LNG must also be considered in light of its potential to serve as part of an essential bridge to a future energy portfolio that is more dependent on renewables. In this context, all sources of clean energy should be considered if they have potential to increase supply, assure supply and price stability and reduce reliance on foreign energy. - Gov. Ted Kulongoski, Memo on LNG, Nov. 16, 2007, pgs 1-2.

    29. LNG is far cleaner than coal On a life-cycle cost basis, LNG has less than half the CO2 content of domestic coal and only slightly more than domestic natural gas. In addition, unlike coal, there are no mercury emissions from the burning of natural gas.

    30. An LNG Terminal could provide significant savings to gas consumers NW Naturals modeling shows that an LNG terminal could save consumers hundreds of millions of dollars in transportation-based cost savings from LNG supply. 30

    31. Bradwood Landing 31

    32. Oregonian endorsement 32 On June 15, The Oregonianpublished an editorial calling for the Bradwood Landing project to proceed.

    33. 33 Bradwood Landing terminal location

    34. Bradwood Landing pipeline 36.3 miles

    35. Bradwood Landing key data

    36. Why Bradwood is an excellent site Bradwood offers a sheltered, deep water port and requires a shorter pipeline to connect with existing natural gas lines. Shorter 36.3 mile pipeline allows for faster construction time and lower transportation costs to move gas to OR and WA consumers. The site has a 150+ year history as an industrial site including use as a lumber mill, mill town and deep water port. There is no tsunami risk. There is no risk of contamination to human or aquatic life from turning basin dredging because no toxins are present. It is a remote site that will not impact other existing civic infrastructure such as airports or cities.

    37. Bradwood Landing: 1856-1965 Industrial History

    38. BWL is designed to deliver gas to PNW We contracted an independent study to examine where the physical gas flows from our terminal will go. At an expected terminal utilization of 40% (industry average):

    39. BWL is designed to deliver gas to PNW We contracted an independent study to examine where the physical gas flows from our terminal will go. At an expected terminal utilization of 100%:

    40. River traffic and the U.S.C.G. Waterway Suitability Report for Bradwood Landing The Columbia River is the main import and export highway for many products Oregon and Washington consume, grow and manufacture. It is vital to commerce. Vessels carrying more volatile cargoes than LNG (gasoline, diesel, anhydrous ammonia, fertilizer and chemicals) are routine on the Columbia River and are not subject to the same safety and security measures as LNG vessels. U.S. Coast Guard determined that with improvements to navigation, safety and security the Columbia River is suitable for LNG carriers. Bradwood will pay for all safety, security and navigation upgrades. LNG carriers will not adversely affect river traffic. LNG vessels will transit the river much like other deep draft vessels on the river today. USCG to routinely allow other vessels to transit through the safety/security zone. 40

    41. LNG carrier traffic in context At an estimated maximum of 125 LNG carrier visits per year, deep draft vessel traffic on the Columbia would still be lower than it has been. 41

    42. LNG ships: among the strongest in the world

    43. 43 Large ships on the Columbia River today

    44. 44 In-transit safety/security zone

    45. 45 At berth safety/security zone

    46. Bradwood Landing will be a national model of environmental sustainability Avoid & Minimize adverse impacts of the project to the greatest extent feasible: shrinking the facility footprint, protecting sensitive areas, designing new solutions. Compensate for unavoidable impacts with mitigation that creates verifiable net benefits (monitored by FERC and NOAA). Enhance, beyond regulatory requirements, fish productivity and the Lower Columbia ecosystem and support sustainable principles and processes.

    47. 47

    48. 48

    49. Svensen Island purchase

    50. 50

    51. Above and beyond : BWLs Salmon Enhancement Initiative BWL is committing $59 million to the SEI to ensure the project significantly improves ecosystem function and salmon productivity in the Lower Columbia River. Bradwoods voluntary Salmon Enhancement Initiative represents the largest private commitment to improve watershed health on the Lower Columbia River. Using NMFS own methodology to model the benefits of the SEI, the program is projected to improve salmon survival by 1.77 million juvenile fish per year. This would represent 50 percent of NMFS own survival improvement target for ocean-type fish, such as salmon.

    52. 52

    53. 53

    54. Local economic impact taxes and jobs

    55. 55 Local economic benefits We will seek to maximize opportunities to purchase locally. We will use local skilled union labor to build the facility. We have signed project labor agreements with the Oregon Building Trades. We have partnered with Clatsop Community College, Lower Columbia Community College, and organized labor to train local workers to fill skill gaps. We have given scholarships to encourage women and Clatsop residents to learn the specialized welding and other skills we will need to build and operate our facility.

    56. BWL has widespread support

    57. Significant amount of un-contracted supply by the time BWL operational

    58. More information Bradwood Landing 905 Commercial St. Astoria, OR 97103 (503) 325-3335

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