Gulf LNG Liquefaction Company (GLLC) and Gulf LNG Energy (GLE), collectively filed an application with the Federal Energy Regulatory Commission (FERC) pursuant to Section 3 of the Natural Gas Act, requesting authority to construct and operate new natural gas liquefaction and export facilities at GLE’s existing liquefied natural gas (LNG) regasification terminal located in Jackson County, Mississippi, near Pascagoula. Additionally, pursuant to Section 7(c) of the Natural Gas Act and FERC regulations, Gulf LNG Pipeline (GLP) notified the FERC that minor modifications will be made to the existing pipeline facilities that currently interconnect with the terminal under GLP’s blanket authorization from the FERC. The applicants have requested that the FERC grant authorization of the requests no later than June 17, 2016.

Subject to obtaining sufficient long-term customer commitments, anticipated capital expenditures for the project at full development total approximately $8 billion. Anticipated capital for a single LNG train in phase one totals approximately $5 billion and approximately $3 billion for a second train in phase two. In service for phase one is anticipated in the fourth quarter of 2020 and the fourth quarter of 2021 for phase two.

“The proposed Gulf LNG Liquefaction Project will be a world-class facility within an existing world-class deep water port and, importantly, be located in an energy friendly state and benefit from a supportive community,” said Kinder Morgan East Region Natural Gas Pipeline President Kimberly S. Watson. “In addition, it will have a number of other distinct advantages, including: the ability to utilize existing infrastructure, minimizing typical new LNG construction risks; it will be built and operated by a seasoned LNG operations team; the facility will have abundant and diverse natural gas supply options and easy access to international shipping lanes.”

The project has already received U.S. Department of Energy (DOE) Free Trade Agreement (FTA) export authority and non-FTA authority is pending. On June 15, 2012, GLLC received approval from the DOE to export up to 11.5 million tonnes per annum (MTPA) of LNG. In August 2012, GLLC submitted a filing to the DOE seeking approval to export up to the same volume of LNG to non-FTA countries.

The project will include the installation of natural gas pre-treatment, liquefaction and export facilities at the terminal with a total peak capacity of up to 11.5 MTPA. The average expected send-out rate for the proposed facility will be approximately 1.5 billion cubic feet per day (Bcf/d) of LNG. These facilities will allow the terminal to liquefy domestic natural gas delivered by pipeline, store the LNG in the terminal’s existing LNG storage tanks and load it into LNG vessels via the terminal’s existing marine jetty. The terminal will retain its current capability to receive, store, regasify and deliver natural gas into the interstate pipeline system as originally constructed, thereby making the Gulf LNG Terminal bi-directional. The project is divided into two phases:

- Phase one will consist of a single liquefaction train expected to have a base LNG production capacity of approximately 5 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.

- Phase two 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 percent once the project is in operation.

In addition to helping the United States balance of trade, the project stands to be one of the largest economic development investments in Mississippi history, create hundreds of jobs during construction, boost local-regional construction spending and provide significant economic value to Jackson County and the Port of Pascagoula. Also, the additional energy infrastructure will benefit local and state economic development.

GLLC, GLE and GLP are each owned by Gulf LNG Holdings Group, LLC, a Delaware limited liability company, which is owned 50% by Southern Gulf LNG Company, LLC, a wholly owned subsidiary of Kinder Morgan, Inc. and operator of the Gulf LNG Terminal, and 30% by Thunderbird LNG, LLC (Thunderbird). Thunderbird is a wholly owned subsidiary of Thunderbird Resources Equity, LLC, which is jointly owned by GSO Capital Partners and Chatham Asset Management. GSO is owned by The Blackstone Group, LP. The remaining 20% is owned by subsidiaries of Arc Logistics Partners LP and Lightfoot Capital Partners LP. Kinder Morgan, Inc. (NYSE: KMI) is the largest energy infrastructure company in North America. It owns an interest in or operates 84,000 miles of pipelines and 165 terminals. The company’s pipelines transport natural gas, gasoline, crude oil, CO2 and other products, and its terminals store petroleum products and chemicals, and handle bulk materials like coal and petroleum coke. Kinder Morgan is the largest midstream and third largest energy company in North America with an enterprise value of approximately $130 billion.

Existing Facility

The existing regasification terminal, which includes a 5-mile send-out pipeline, is located at the end of State Highway 611 and is situated adjacent to the federally maintained Bayou Casotte Navigation Channel.

The terminal has a single dock facility that 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.

As part of the liquefaction project, the permitted limit will be increased to 208,000 cubic meters. The two LNG storage tanks are full containment tanks, each with a capacity of 160,000 cubic meters. Each tank is outfitted with three in-tank pumps with a total unloading capacity of 12,000 cubic meters per hour. The flow of LNG from the in-tank pumps goes to the regasification facilities in the terminal. Regasification facilities include eight high-pressure cryogenic pumps and 10 submerged combustion vaporizers with a total rated send-out capacity of 1.5 Bcf/d.

State-of-the-art fire protection and other hazard detection systems are located throughout the terminal. The terminal is surrounded by a concrete storm surge protection wall that has an elevation of 27 feet above sea level. Two openings in the wall - one for the main access road and another for dock access - are outfitted with steel doors that can be closed in the event of an approaching tropical system.

About Kinder Morgan, Inc.

Kinder Morgan, Inc. (NYSE: KMI) is one of the largest energy infrastructure companies in North America. We own an interest in or operate approximately 84,000 miles of pipelines and 152 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals transload and store liquid commodities including petroleum products, ethanol and chemicals, and bulk products, including petroleum coke, metals and ores.