Optimal Location

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	Regas Terminal Optimal Location
	OPTIMAL LOCATION
	The Freeport LNG project is located in Brazoria County, Texas, on the northeastern edge of the historic Town of Quintana, and southeast of the City of Freeport, on property leased from Port Freeport.

	Optimal Marine Conditions
	Under normal conditions it takes only approximately an hour for the LNG vessel to navigate the channel from the pilot boarding station at the sea buoy to the terminal's berth—a fraction of the time possible to achieve at other U.S. LNG terminals. For example, the distance of 5.5 miles from Port Freeport’s sea buoy to FLNG berth compares more than favorably with that of 23.5 miles at Sabine Pass and 50 miles at Lake Charles. As part of Port Freeport’s expansion plans, the existing 400-foot wide ship channel, maintained at a depth of 45 feet, will be further widened to at least 500 feet, thus improving the conditions for bringing in the largest LNG tankers currently serving LNG trade. These marine conditions provide for a significantly higher efficiency of the shipping operations and decrease the risk of delays for the customers.

	Favorable Economic Characteristics
	The Freeport terminal location has other excellent economic and geographic characteristics. It is situated in one of the largest gas producing regions in the world, very close to abundant proved reserves of natural gas from shale gas plays including Eagle Ford, Barnett and Haynesville-Bossier. Two of the largest gas trading hubs in the country, the Houston Ship Channel and the Katy Hub, provide flexibility to natural gas shippers near the Freeport terminal. The Texas natural gas market is one of the largest in the world, and is highly liquid as it is intricately connected to other major US markets by a vast network of pipelines. In 2010, the physical volume of natural gas traded at the Houston Ship Channel alone represented three times the volume traded at the Henry Hub.

	Supportive Political Environment
	FLNG benefits from a supportive local community on Quintana Island and from Port Freeport. The regasification project added over 1,000 construction jobs and created some 70 permanent jobs and provided an estimated 500 percent increase in income for the local township and a substantial increase in revenue flows for Port Freeport.