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Company Overview About LNG Canada LNG Canada Represents One of the Largest Energy Investment in the History of Canada

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Company Overview About LNG Canada LNG Canada Represents One of the Largest Energy Investment in the History of Canada Company overview About LNG Canada LNG Canada represents one of the largest energy investment in the history of Canada. It is a joint venture company comprised of five global energy companies with substantial experience in liquefied natural gas (LNG) – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS. Together, we are building and operating an LNG export terminal in Kitimat, British Columbia in the traditional territory of the Haisla Nation. 4,500 people 200 to 400 at peak construction specialist LNG ships at the Kitimat site will visit our terminal every year TransCanada will be build, own and operate the 670 km Coastal GasLink pipeline A typical LNG The process of carrier is roughly LNG storage transporting natural tanks are gas from the ground in designed B.C. to the end user to keep overseas takes about 290 the LNG at METRES LONG -162°C 12DAYS DID YOU KNOW? Each tank will hold 80 Olympic swimming pools of LNG We have worked closely with the community, with First Nations and with municipal, regional provincial and federal governments to understand how LNG Canada can help Kitimat, the region, the province and the country achieve their social, economic and environmental aspirations 24hrs = A ship will visit the LNG facility in LNG Canada will meet some of Kitimat every other day in phase the strictest regulatory standards one, increasing to approximately in the world for both safety and environmental protection one ship per day at full build out Putting Canada on the map of LNG exporting countries LNG Canada will be exporting Canadian natural gas to Asian markets, and in the process, putting Canada on the LNG is odourless, colourless, global map of LNG exporting countries and creating a world-class liquefied natural gas (LNG) industry in British non-toxic, non-corrosive, Columbia and Canada. and non-flammable. LNG Canada is the first significant LNG-export facility in Canada to receive a final investment decision. To export natural gas, it first needs to be turned into its liquid form – LNG. This reduces its volume 600-fold and makes it practical to ship via specially designed LNG marine vessels. To do this, gas is cooled to -162 degrees Celsius, at which temperature it turns into a liquid. LNG is odourless, colourless, non-toxic, non-corrosive, and non- flammable. LNG is stored at around atmospheric pressure. If LNG is inadvertently released, it quickly vapourizes as it warms, rises and disappears into the atmosphere, leaving no residue behind LNG cannot burn, as it doesn’t contain oxygen, which is needed to support combustion. Natural gas is recognized as affordable and clean burning, as well as safe to store and transport. For countries that depend on burning coal for the majority of their energy needs, LNG can play an important role in the energy transition to a lower carbon future. Using LNG from BC has the potential to greatly reduce those countries’ greenhouse gas emissions, resulting in significant net global greenhouse gas reductions while significantly improving air quality. Canada has an abundant supply of natural gas and has been exporting it for the past five decades, primarily to the U.S. As the U.S. now has natural gas reserves of its own that it is developing, Canada is looking for new markets for its natural gas. Delivering an LNG project in BC Why British Columbia? At the outset of LNG Canada’s planning for an LNG export Finding the right location for LNG Canada’s LNG export facility in British Columbia, Canada, we made commitments facility wasn’t easy. We chose British Columbia because it that we intend to deliver on throughout construction. has the second largest natural gas reserves in Canada and is a reasonable shipping distance from Asian markets. • We will build the export facility sustainably and minimize impacts on the environment. We identified and reviewed more than 500 possible locations in BC prior to selecting our site in Kitimat, B.C., at the head of • We will build the export facility safely and responsibly, in a way Douglas Channel, in the traditional territory of the Haisla Nation. that respects local First Nations relationship to the land and water, and the local communities’ need for a company that We wanted to be as far inland as possible, because it shortens makes a positive contribution to its economic and social fabric. the amount of pipeline needed to connect the gas reserves to our • We will build the export facility innovatively, incorporating LNG export facility. Other key features of our site include: the latest technology to keep costs down, environmental and social performance up, and provide lasting benefits to local • Industrially zoned land communities, the province and the country. • Year-round ice-free deep water port • Existing infrastructure such as roads, power lines and a nearby airport in Terrace • Positive relationships with local government, First Nations and the community. LNG Canada Proposed Site Map Minette Bay Gas has been produced in British Columbia for more than 70 years *Map is for illustrative purposes only Trusted and valued From the beginning, LNG Canada set out to be a company in a category of one – the project of choice for British Columbia We have created a Community and Canada. We made every decision keeping safety, economic, Commitment Charter in collaboration environmental and community interests top-of-mind. with the community that outlines the Along with JGC Fluor, we will continue to work closely with commitments we will live by every day. the community, First Nations and municipal, regional, provincial and federal levels of government to understand how our Company can help achieve collective social, economic and environmental aspirations. We are working to minimize potential environmental impacts - whether at the site or in the marine environment. We are committed to listening, learning and working together to share information, to share value, and to meet the needs of the community. We believe LNG Canada can be a catalyst for northern B.C. development and an opportunity for British Columbians in both the north and south of the province, to realize benefits through employment and the economic contributions. LNG Canada is a project of national significance and will enable Canada to access new trading partners for its abundant natural resources. LNG Canada could not have moved forward without the support the community showed. Enabling the energy transition locally and globally LNG Canada believes that energy development projects As part of our Environmental Assessment process, we studied and the environment can co-exist, as long as the right potential environmental effects on people, water, air and land. design and planning are done upfront, the project We operate in an environment of continuous and demonstrable incorporates local and traditional knowledge, and there improvement. We have reduced our environmental footprint is an effective way to monitor performance throughout related to air, land and water. We work with governments to the life of the project. develop innovative policy solutions that position BC and Canada as leaders in energy development, Indigenous reconciliation and Through a combination of energy efficient natural gas turbines environmental stewardship. and renewable electricity from BC Hydro, our project will emit less than half the greenhouse gas emissions of the average LNG facility currently in operation. The safety record of the industry – more than 70 years with no accidents of any significance, and a product that evaporates rather then spills, makes LNG acceptable to the community residents, First Nations along the shipping corridor, and the Haisla First Nation, on whose territory we are located. The project of choice Safety is critical to our ability to deliver energy responsibly, as is environmental performance. LNG Canada is meeting some of the strictest regulatory standards in the world for both safety and environmental protection. Our facility includes a number of safeguard systems to protect against incidents – including alarms and multiple back-up systems to ensure that every man and woman working on our project gets home safely at the end of their shift or working day and the safe operation of the facility for decades to come. LNG shipping has one of the best safety records in the marine industry: over 80,000 cargoes delivered without a single cargo loss since the first commercial cargo in 1964. There are currently more than 400 LNG carriers in operation around the world. In June 2015, the provincial and federal regulatory agencies granted environmental approvals for our project. We have also achieved other significant milestones in 2016, becoming the first LNG project to: • Receive an Oil and Gas Commission (OGC) permit • Have our application for a 40-year natural gas export licence approved by the National Energy Board • Have Transport Canada review our TERMPOL submission • Include First Nations as active members in the TERMPOL studies. To learn more about our proposed project, please visit our website at lngcanada.ca A one of a kind plant with option to expand • Average two 7.0 million tonnes per annum • Utilities and buildings (mtpa) per train • Marine terminal for loading Q-flex LNG carriers • Highly efficient General Electric Turbines • Temporary worker accommodation village • 100 MW Renewable Power from BC Hydro and laydown areas • One 225,000 m3 LNG storage tank • Option to expand up to additional 2 trains Artist rendering of the proposed LNG Canada site. Working together to deliver local benefits We are committed to ensuring that benefits from our proposed project flow to the local communities of Kitimat and Terrace, and across B.C. and Canada. While many local people have already found employment during the planning and development stages of the project, the majority of employment and community benefits will be seen during the construction phase and operations of the project, pending a positive final investment decision.
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