InFocus May 2014

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Welcome

Major Project Milestone

LNG Demonstrations

Meet James Baldwin

Marine Mammal Study Program

Upcoming Events

INFOCUS LNG Canada’s community newsletter

May 2014

Bringing LNG to Kitimat: A first for northwest B.C. LNG Canada hosted live demonstrations of LNG, bringing the product to the community for the ďŹ rst time


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Welcome

LNG ARRIVES IN KITIMAT 01

WORKING TOGETHER The following represents some highlights of recent project activities and achievements that are helping us to move the project closer to reality. Community Input Sessions (02). On April 28, we held meetings with community members in Kitimat to get input on how the community would like to hear from us and engage with us. Through a series of meetings, valuable input was collected that will influence future communications from the company. LNG Canada will be hosting more sessions like these in the coming months so if you’d like to take part and share your views, please let us know by emailing info@lngcanada.ca

Mary-Ellen Proctor

WELCOME In this latest edition of InFocus, LNG Canada’s newsletter, we’re pleased to share with you details about some of our recent community events such as our LNG demonstrations in Kitimat and Terrace and the launch of our updated project website. I’d also like to recognize a recent project milestone on April 30, when the four parties behind the LNG Canada Project formalized the joint venture, bringing the LNG Canada project closer to reality. The creation of our operating company – LNG Canada Development Inc. – is an important step that allows us to conduct more detailed planning and technical analysis. We’re looking forward to an exciting and productive year ahead and more importantly working with you. If you have feedback on this newsletter or ideas for storylines, please let us know. We look forward to hearing from you!

A Major Milestone (03). On April 30, the four parties behind the LNG Canada project formalized the joint venture in a signing ceremony. This is an important milestone for the project as it formalizes the joint venture and creates an operating entity that enables LNG Canada to progress the project and enter into agreements with potential suppliers and contractors. 02

02: Community members sharing their ideas at a recent community input session.

01: Kitimat Councillor Feldhoff pours LNG over a balloon, rapidly chilling it and reducing the volume of gas to a small puddle.

LNG Canada hosted live demonstrations of liquefied natural gas (LNG) in Kitimat, Kitamaat Village and Terrace in March, bringing the product to the community for the first time. The demonstrations used real LNG to explain its properties and the science behind turning natural gas into a liquid. Erik Neandross, also known as our “LNG guy”, undertook demonstrations at the Mount Elizabeth Theatre in Kitimat, at the Kitamaat Village School and at the SkillsBC Regionals Skills Competition and Trades Day in Terrace. One thing became very clear: LNG is cold… very cold. Kept at a temperature of minus 162 degrees Celsius, the demonstration showed how cold LNG is in its liquid form and how quickly it turns back to a gas and evaporates when it starts to warm up. Wendy Bolton, Education Manager for the Haisla Nation, said she enjoyed the demonstration and noted, “It was a great educational and informative demonstration

that held the students attention, as well as the staff.” For LNG Canada, the demonstrations were another great opportunity to visit the community and meet more residents, local government and First Nations, while at the same time increasing local knowledge about the properties of LNG and the LNG industry. Many thanks are in order, because we couldn’t have pulled off the events and demonstrations without the help and support from the staff at the Mount Elizabeth Theatre, Mount Elizabeth Secondary School, Haisla Community School, and the students, staff and community who attended. We also want to thank members from the Haisla Nation Council and Haisla Nation Council Administration Office, the Kitimat Mayor and members of Council, the Kitimat Fire Chief, and the many people who attended and contributed to a successful event. A video from the demonstrations will be available on our website soon.

Shell, PetroChina, KOGAS and Mitsubishi Corporation are proposing to build and operate LNG Canada – a liquefied natural gas export facility in Kitimat, B.C.

Did you know? • LNG is simply natural gas – like what we use in our homes to cook food, or heat water – in a liquid form.

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• LNG itself does not burn because it does not contain oxygen, which is needed to create a flame. • The volume of natural gas shrinks about 600 times when liquefied – think of something going from the size of a large beach ball to the size of a ping pong ball. • A molecule of natural gas will take approximately 12.5 days to travel from the well in northeast B.C. through the pipeline and LNG facility to the LNG customer in Asia.

“Diego was very impressed with the demonstration, and has shown an interest in science since then. For myself, I found it very informative.”

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03: Premier Christy Clark and Minister Rich Coleman attended the Joint Venture signing with, seated from left to right, Jorge Santos Silva of Shell, Bi Jingshuang of PetroChina, Andy Calitz of LNG Canada, Hiroki Haba of Mitsubishi Corporation, and Jongkook Lim of KOGAS.

04: Supporting Fire and Emergency Services. LNG Canada partly funded a Fire Protection Study for the District of Kitimat in 2013. Pictured (from left to right): Alex Dobri - Fire Captain, Dan Jerrett - Firefighter, Kiel Giddens - TransCanada Pipelines, Peter Bizarro - Deputy Fire Chief, Mary-Ellen Proctor - LNG Canada, Dave Ingram – Firefighter.

JC Bourget, who attended the LNG demonstration with his son Diego (pictured on front cover) in Kitimat. INFOCUS 3


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Meet James Baldwin 01: Moore Creek Falls in Kitimat 02: An observer for LNG Canada’s marine mammal surveys 03: A humpback whale near Douglas Channel

SAFEGUARDING THE ENVIRONMENT AND GETTING IT DONE RIGHT 01 02 James Baldwin

Meet James Baldwin, team lead for environmental and regulatory affairs for the proposed LNG Canada project. As someone who cherishes the outdoors, and with a passion for safeguarding the environment, James understands how important it is to “get this right” for Kitimat.

STUDYING THE MARINE ENVIRONMENT 03

“Getting it right means finding solutions to minimize environmental impacts of the proposed project and meeting some of the strictest regulatory standards in the world,” says James. In his role, James is responsible for leading the team undertaking studies that look into the potential impacts the project could have on the surrounding environment. It’s an enormous task, but James is up for the challenge. In fact, in James’ previous role with Qatargas, of which Shell was a joint venture partner, he was responsible for introducing a wide range of environmental initiatives aimed at reducing greenhouse gas and other emissions from that facility. That program was so successful in reducing emissions it won a Global Environmental Award from the World Bank in 2012.

LNG Canada recognizes the natural beauty of the B.C. coast and respects the high value British Columbians place on the marine environment. Based on our early consultations with First Nations and the local community, LNG Canada developed a state of the art marine mammal baseline study program to better understand the wide range of marine mammals that live or transit through north coast waters. Some of the unique aspects of LNG Canada’s marine mammals study program include:

James is also no stranger to northwest B.C. Last fall, he attended open houses in Kitimat and Terrace to discuss with community members the various environmental programs being studied and implemented for the proposed project. In his view, “Kitimat is a land that is simply stunning. From the water to the soaring mountains, the area is full of natural beauty.” The proposed project is undergoing a thorough environmental assessment and is committed to working with the community to secure positive environmental outcomes geared to respecting and safeguarding the environment. “The community has raised many comments and interests to date, and we are considering these as we continue to plan the project,” notes James. When asked why he chose to join LNG Canada, James says he has “always been impressed by the authentic manner in which Shell goes about its business and the real way it delivers on what it says it will to safeguard the environment and operate responsibly.” As a scuba diver and PADI dive master, and all-around outdoorsman, the values guiding LNG Canada align with his own, allowing James to contribute to environmental leadership at the highest levels.

GETTING IT RIGHT MEANS FINDING SOLUTIONS... FOR OUR PROJECT TO MEET SOME OF THE STRICTEST REGULATORY STANDARDS IN THE WORLD

Shell, PetroChina, KOGAS and Mitsubishi Corporation are proposing to build and operate LNG Canada – a liquefied natural gas export facility in Kitimat, B.C.

• A focus on estimating abundance rather than just presence or absence, which has typically been the case with other project studies • The size of the study area which included the waters of Kitimat Arm, Douglas Channel, Whale Channel, Squally Channel, Caamano Sound, Estevan Sound, Principe Channel and up to Triple Island • Species included a variety of whales; sea lions; and white-sided dolphins

• 12 surveys completed over 10 months to capture both peak and low seasons • Methodology validated by a third party expert, Dr. Robert Williams “The north coast waters feature a wide variety of marine mammals present not just seasonally, but also year round, and we wanted to be able to estimate numbers of animals present as well as where they were,” explains Rowenna Gryba, Marine Ecologist working with LNG Canada. In addition to the marine mammal surveys, LNG Canada has also completed an underwater noise survey to better understand the marine acoustic environment.

Did you know? The B.C. Environmental Assessment Office (EAO) recently issued LNG Canada’s Application Information Requirements (AIR) for the proposed project, which was developed in consideration of comments submitted by the public, First Nations and regulators. To view the comment tracking tables and the AIR, visit the B.C. EAO website at www.eao.gov.bc.ca and look for our project under the “Proposed EAs.”

LNG Canada will continue to collect information and complete environmental studies in support of developing our Application for an Environmental Assessment Certificate, which we intend to submit to the B.C. EAO later this year.

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Upcoming Events

LNG CANADA’S NEW WEBSITE – BUILT WITH THE COMMUNITY

UPCOMING EVENTS • 2014 International LNG in B.C. conference: May 21 – 23, 2014 LNG Canada will be at the second annual LNG in B.C. conference, taking place at the Vancouver Convention Centre from May 21 – 23, 2014. The conference is being hosted by the Ministry of Natural Gas Development of the B.C Government. We’re also sponsoring the local school district to bring a group of grade 10 students to the conference. Visit our LNG Canada booth to see live demonstrations of LNG.

HELPING TO PREPARE THE LOCAL WORKFORCE FOR JOBS IN LNG 03

• Partnerships 2020: June 11 – 12, 2014 LNG Canada will be participating in the 2nd annual Partnerships 2020, an initiative of the Northwest Labour Market Partnership (Northwest LMP). The conference will be held at the North Coast Meeting and Convention Centre in Prince Rupert and the focus is to bring together those with an interest in developing a well trained workforce for industry in Northwestern B.C. If you are in the area, drop by our booth and learn more about LNG Canada and opportunities with the proposed project.

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LNG Canada is excited to announce the launch of its new website. What excites us most is this new website was created with the community’s help, which we are very grateful for. The new site is full of updated information about the proposed project and new features to help you access the type of information that you are interested in.

02: LNG Canada Open House in Kitimat

We encourage you to check it out, and let us know what you think. If you have ideas for new information or features you would like added to the website, we’d love to hear from you because at LNG Canada we believe that what we do can be better when we listen to you.

03: Daria Hasselmann, LNG Canada’s social performance advisor, with Ben Williams who is studying to be a professional kitchen cook at the Northwest Community College in Terrace. Ben was a recipient of one of our trades scholarships.

LNG Canada will be hosting additional focus groups and workshops, similar to the ones we had about building the website, to understand what matters to the community and to

01: Check out our updated website at www.LNGCanada.ca

consider your input as we develop plans for the proposed project. If you’re interested in participating in future input sessions to share your views, please send us an email at info@lngcanada.ca.

Through our consultation and engagement activities, we invite local residents to take part in focus groups, workshops and open houses so we can collect community input into a variety of initiatives. If you’d like to take part and share your views, please let us know by emailing info@lngcanada.ca.

Shell, PetroChina, KOGAS and Mitsubishi Corporation are proposing to build and operate LNG Canada – a liquefied natural gas export facility in Kitimat, B.C.

• Natural gas interactive display: May to August, 2014 Visit our natural gas interactive display at the Tamitik Complex in Kitimat, starting in late May. The 4-dimensional display explains how a molecule of natural gas turns into LNG, and much more. Check out our website for dates and times of when the display will be open to the public. • Canadian Geographic Energy IQ: June through August, 2014 We’re bringing Canadian Geographic’s ‘Big Energy Map’ to Kitimat during the months of June and August. Check out our website for dates and locations. • LNG Canada Open Houses: June 2014 As we continue to prepare our application for an Environmental Assessment Certificate for later this year, we want to ensure the local community has opportunities to learn more about the project and provide input on things that matter to you. We are working on building a 3-D site model and planning open houses and workshops, all scheduled for later in June 2014. Details will be advertised in local newspapers and on our website, so please keep an eye out and stay in touch.

Many people will be needed to construct LNG Canada’s proposed project and LNG Canada will seek to hire and contract locally. It is estimated that LNG Canada would create thousands of jobs during construction and hundreds of permanent, full-time jobs during operations. Skilled trade workers will play a critical role in ensuring the LNG Canada project is successfully constructed and operated. To prepare for this need, LNG Canada is working with the provincial government, local industry and other organizations such as the Northwest Labour Market Partnership to better understand the current capability of the local workforce and potential labour shortages associated with the newly emerging LNG industry in British Columbia. Additionally, LNG Canada, through its social investment program, is actively focusing on supporting educational initiatives in the local community. For example, LNG Canada will contribute $60,000 over three years, beginning in 2013, towards the Trades Opportunity Scholarships in Coastal Mountain School District #82 for youth interested in pursuing a career in skilled trades. For more information about our social investment programs and jobs, please visit the “Working with you” section on our website.

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LEARN MORE AND GET INVOLVED LNG Canada is committed to ensuring local communities and First Nations have meaningful opportunities to learn about, and provide input on, the proposed project. We believe that by working together and understanding what is important to you, we can design, build and operate a project that considers community interests, and provides benefits to north coast communities and all British Columbians. A number of ways exist for you to learn more and get involved. • VISIT: LNG Canada Community Information Centre located at 176 Ocelot Road in Kitimat, open Monday – Wednesday, 11:00 a.m. – 5:00 p.m • ATTEND: Open houses or community meetings will be held at key milestones including part of the Environmental Assessment process • CALL or EMAIL: Toll free: 1-855-248-3631 or local 1-250-639-3229 Email: info@lngcanada.ca • WEBSITE: www.LNGCanada.ca


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