We intend to become the most cost-competitive provider of LNG terminal services in our markets - energy markets that have a demonstrated need for natural gas supply and that are attractive long term markets for LNG suppliers.

Targeting the West Coast

Because of the significant regulatory and environmental challenges that must be addressed to successfully develop, build and operate an LNG terminal on the West Coast, our low-cost, first-to-market strategy will give us a competitive advantage over later market entrants in completing our projects and securing long-term agreements with natural gas suppliers.

Applying Disciplined Project Development

Our senior management team has been directly involved in either the development, the construction or the operation of nine LNG terminal projects worldwide. Through their broad experience, they have developed the ability to identify significant challenges quickly in order to resolve them early on in the process. Our leadership actively manages the project teams of seasoned professionals, who are supported by leading engineering, environmental, regulatory and legal firms, in order to anticipate difficulties, define strategies and analyze the needs of each constituent group and regulatory body involved in the process. Our goal is to work in collaboration with all our stakeholders and achieve as much widespread support as possible.

Building Cost-Effective Terminals

We are developing and constructing cost-effective LNG terminals in premium locations that will enhance the attractiveness of our projects to customers and allow us to generate attractive margins. We develop cost-effective projects by:

• Locating our projects in close proximity to major regional gas transmission pipelines, allowing our customers to enjoy competitive pipeline interconnection and transmission costs

• Maximizing use of existing infrastructure where possible, such as the existing platform for Clearwater and the on-shore natural gas storage facilities in Southern California

• Selecting sites that are well-suited for LNG terminal operations such as Bradwood, a deepwater location which does not require a costly breakwater or significant dredging for operations

Securing Long-Term Terminal Use Agreements

We intend to leverage our existing relationships with North American natural gas market participants and suppliers in the Pacific Basin to secure long-term (20-year), firm-capacity agreements with creditworthy natural gas suppliers, marketers, distribution utilities or industrial consumers.