that Jay Copan, Executive Director of LNG 17

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    Jay Copan, Executive Director of LNG 17 and Senior Advisor to the American Gas Association

About LNG 17

Q1: As the executive director of LNG 17 17, what’s your main job for this amazing event?

    I’m responsible for overseeing the global LNG 17 17 team’s day-to-day organization in the

    lead up for the big event next April. LNG 17 17From the exhibition and sponsorship activities, to all of the logistics surrounding the event, the entire LNG 17 team is committed to making this event the most successful event in the global gas industry.

    For this reason, we have leading speakers from all over the world. For example, The Global Strategy Forum has the confirmed participation of Chief Executives from each of the major gas-producing regions, including: Antoni Llardén, President, Enagás; Maria das Graças Silva Foster, CEO, Petrobras; Wang Dongjin, Vice-President, CNPC; Tom Walters, President, ExxonMobil Gas & Power Marketing; Joseph C. Geagea, Corporate Vice-President & President, Chevron Gas & Midstream; Hamad Rashid Al Mohannadi, Managing Director, RasGas; and Pat Roberts, Managing Director, LNG Worldwide Ltd.

    In the Global Outlook for LNG, world-renowned, Pulitzer Prize-winning author, Daniel Yergin, will provide the most up-to-date analysis and forecast of trends in the global gas industry, with an emphasis on the role that LNG will play.

    At a macro-economic level, Robert Lesnick, Oil and Gas Program Manager, The World Bank will cover The Opportunities for LNG to Stimulate Economic Development looking at how developing countries around the globe face an exciting opportunity to grow in a more carbon friendly manner. He will also address the role of government policy and natural gas-based industrial development and what the positive impacts are on local development.

    Q2: LNG series meeting always show the trend and future of LNG industry, so what’s the theme of this event? What kind of event you want to show?

    LNG 17, to be held from April 16-19 in Houston is going to be the biggest global gas event in 2013. The event focuses on the technical, commercial and strategic aspects of the dramatically growing LNG industry including growing gas demand, new market

    opportunities, new applications and innovations.

    The industry is literally doubling in size every ten years, and LNG 17 will recognize this growth while setting the stage for the future dynamics of the industry.


    In addition to addressing thechallenges and opportunities facing the industry and what can be done do collectively to address these, the event is also focused on a number of current issues. For example, the LNG industry faces chronic skills shortages in a number of areas, and we are establishing a fund to provide scholarships for technical and vocational training in areas such as welding, pipe fitting and others. You will be hearing more about this legacy fund in the coming months.

    LNG 17’s uniqueness lies in the fact that it is the only global event created by the industry bringing together the entire LNG value chain. The growth of LNG in the global marketplace is exemplified by the fact that LNG 17 will not only be the largest LNG event in 2013, but also the largest global gas event in the world next year.

    LNG 17 will gather more than 5,000 senior technical, commercial and strategic experts from over 80 countries.

    Attendees will have the opportunity to visit more than 300 exhibitors demonstrating the most comprehensive spectrum of LNG products, services and suppliers ever assembled. They will also get to hear from top-level speakers and attend a variety of networking events. There will be a Global Strategy Forum with chief executives from major gas producing and importing regions addressing the most significant trends, challenges and opportunities facing the industry today and tomorrow. This includes market, finance and technology issues related to the industry.

    In addition, technical tours will be offered to Cheniere’s Sabine Pass LNG terminal located on more than 850 acres along the Gulf Coast. This terminal, the first to be developed as a bidirectional facility, is situated to provide LNG imports, exports and storage services given its large acreage position, proximity to domestic unconventional gas, and pipeline interconnectivity to the largest and most reliable natural gas market in the world.

    LNG 17 is held under the auspices of the International Gas Union (IGU), Gas Technology Institute (GTI) and International Institute of Refrigeration (IIR). The American Gas Association (AGA) is hosting the event.

    Q3: Comparing with other gas events, LNG series meeting has the special paper sessions and poster session in your history. What’s the standard of LNG 17 choosing those papers?

    We were overwhelmed by the record-breaking number of 421 outstanding quality abstract submissions for LNG 17 from industry professionals across the world. This growth was due in part to the decision early on by the LNG 17 Program Committee to recognize all the changes


    taking place in the LNG industry, and thus the number of conference sessions was increased by more than 40 percent, to reach 40 sessions. The program now includes a range of exciting new topics that have never been covered at an LNG series conference before.

    Q4: On you brochure, I see there two new things, one is global strategy forum and the other is spotlight sessions. Why did you conceive these ideas during your event? We want to ensure that LNG 17 would be unrivalled in its position as the must-attend global gas event in 2013.

    The Global Strategy Forum is there to provide a global and strategic outlook of the LNG industry through the eyes of some of the industry’s key players. The forum will take place just after the Opening Ceremony on the first day of the conference and will set the tone for discussions and debates throughout the rest of the week. It is there to provide a top-level comprehensive overview of the future of LNG, by addressing the key industry drivers and future trends.

    The other big new additions to the LNG 17 program are the six Spotlight Sessions that will span the course of the conference. These will each feature world-renowned plenary speakers including Daniel Yergin, the Vice Chairmanand Founder of IHS Cambridge Energy Research Associates, and will cover topical issues as well as future trends and opportunities

    Q5: You chose LA as the city to hold LNG8. This time, why did you choose Houston? As the energy capital of the United States, Houston is the ideal city to host LNG 17. The George R. Brown Convention Center is a state of the art venue, with excellent hotels and other facilities nearby. The choice of Houston has also enabled us to arrange entertaining social activities and tours in and around Texas.

About US LNG history

    Q6: In 2018, AGA will hold WGC meeting in Washington, as I know, 2018 is the one hundredth anniversary of the AGA. There are many milestones during the last 100 years, what’s the main incident change the development of LNG industry in USA?

    WGC 2018 will be an outstanding and unique event on the gas calendar. I cannot think of a better way for AGA to mark its centenary than by hosting WGC.

    Over nearly 100 years, natural gas has become a domestic resource that is found in abundance in the United States. It is a home-grown North American fuel whose efficient use by power plants, homes and businesses contributes to cleaner air.


Natural gas has become one of the cornerstones in the country’s energy mix, meeting almost

    one-fourth of the United States' (U.S) energy needs. These are some milestones achieved in recent times:

    ; Natural gas serves approximately 65 million homes; five million businesses like hotels,

    restaurants, hospitals, schools and supermarkets; 193,000 factories; and 5,500

    electric generating units. On a daily basis, the average U.S. home uses more than 200

    cubic feet of natural gas. Of these, 92 percent more than 65 million customers

    receive their gas from AGA members.

    ; There are nearly 2.4 million miles of pipeline of varying sizes and pressures that

    transport natural gas from the natural gas wellhead to more than 177 million

    Americans throughout the U.S.

    ; Natural gas currently generates approximately 23 percent of total U.S. electricity and

    is favoured because of its environmental benefits. Of the over 250 gigawatts of net

    summer electric generation capacity added since 1999, more than 84 percent has

    been fueled with natural gas.

    ; Natural gas utilities are an important employer in local communities and we are on

    path to the President’s goal of 600,000 new natural gas jobs by the end of this


    There have been many milestones over the last century but I would say that the discovery and exploitation of vast reserves of shale gas has been a real game-changer for the U.S .industry, with geo-political and economic implications.

    Q7: Recently, there is one terminal has been approved. America has changed its role in LNG industry, from importer to exporter. In your opinion, could that change the world energy structure? And what’s this mean to USA? Is the natural gas enough for USA to export?

    America has seen a fundamental shift in the natural gas marketplace. Shale is estimated to provide almost 23 percent of America's natural gas, six times greater than the level of 4 percent in 2005. Technological advances, a newly accessible and abundant domestic resource, and an extensive delivery infrastructure make natural gas the foundation fuel for our economy. Production of natural gas from shale and other unconventional resources has


    added greatly to North American supplies in recent years. This abundance of home-grown natural gas provides an opportunity to satisfy significant new demand at affordable prices well into the future. Our nation’s bullish natural gas supply outlook offers an incredible opportunity to deliver energy value to American homes and businesses, fuel a renaissance in U.S. manufacturing, and provide a cleaner, less expensive option for vehicles, thus reducing our dependence on imported oil.

    There is room to grow natural gas demand at reasonable and relatively stable prices. Domestic natural gas demand growth during 2012-2022 is needed to establish price levels that sustain a production response from gas producers. Many of the identified shale gas resource plays and more traditional production models become economically available to the market at a projected development cost of $5 6 per MMBtu.

    This is precisely the foundation that accounts for the possibility of an additional 11 to 34% increase in domestic natural gas production during the next ten years and is supported by many gas energy outlooks.

    These strong natural gas supply fundamentals along with a robust and reliable natural gas delivery infrastructure suggest that over the next decade, a range of demand scenarios can be met by a diverse and responsive supply market within an estimated price band of $4.00 to $6.50 per MMBtua level well below the peak market prices of the preceding decade.

    Even significant increases in demand can be supported by this large, dynamic, robust and diverse North American natural gas resource base. When coupled with expanding infrastructure and appropriate regulatory constructs, we envision relative natural gas market stability during the next ten years and possibly beyond.

Please access AGA’s latest report for graphics and datapoints:

Q8: How many LNG exporter terminals will be approved in the future?

    There are more than 10 LNG export terminals across North America that have been proposed to the Federal Energy Regulatory Commission. Cheniere’s Sabine Pass terminal on

    the Louisiana border, has already been approved for 2.2 bcf/d of export capacity.

    The applications to export gas to Free Trade Agreement countries now total 27.58 bcf/d of capacity. That’s more than the entire output of U.S. shale gas. Additionally, there are pending applications for 21.06 bcf/d of export capacity to non-FTA countries.


    These decisions for new export terminals are pending the outcome of an Energy Information Administration (EIA) study due at the end of this year, and the U.S. Presidential elections.

    Q9: As I know, Japan is on your buyer list, which countries you will export LNG? And with more and more LNG export terminal approved, will the gas price be cheaper and cheaper? How do you decide the gas price?

    As in most free markets, natural gas price is chiefly influenced by supply and demand.

Gas is currently purchased and sold in three market domains across the globe North

    America, Europe and Asiaat huge price variances. In North America, the deregulated

    market provides a competitive landscape, which, coupled with huge supply volumes leads to low prices around $4 per million btu. In Asia, the price of gas is indexed to oil and is largely traded using a system of long-term contracts, resulting in high prices, around $14 per million btu. Europe prices are hovering around $8 million per btu (1m btu is about 300 kilowatt-hours).

    We need to decide how to finely balance the export market against rising domestic demands in America, as there is a resurgence of domestic manufacturing for fertilizers, plastics and petrochemicals; and replacing coal-fired generation with gas.

    EIA chief Adam Sieminski has stated that he believes the potential for U.S. shale gas remains highly uncertain. Some industry pundits suggest that gas production could actually fall next year, and a majority of our shale gas production could remain unprofitable for another year or more.

At LNG 17, we will feature a Spotlight Session called The North American LNG Market

    Imports, Exports or Both? with 3 highly distinguished speakers who will cover key issues, including:

    •What role does gas play in the North American fuel mix?

     •Will North America be a player in the LNG import market?

     •What are the implications of North American LNG exports on global dynamics?

     •Will gas exports be economically sustainable and competitive?

     •What role will shale gas play in the U.S. LNG market?

     •Pricing and contracting structures – short term and long term

     •Will the expansion of the Panama Canal have an impact on the North American market?

    Q10: What’s function of AGA in USA LNG history? What will you do to keep the energy


balance all over the world?

    AGA, which was founded in 1918, represents more than 200 local energy companies that deliver clean natural gas to more than 71 million residential, commercial and industrial natural gas customers in the U.S.

    AGA believes that given its relative abundance, natural gas has an important role to play in the global economy. It can truly be a foundation fuel for the world’s energy mix.

Please see

    for more details.

    Q11: Could you please tell me, how the government approve the export terminals? What’s their consideration?

    Many considerations have to be taken into account when approving a new LNG terminal, such as the suitability of the local environment for example. The exporter and importer both benefit for obvious reasons, but the government needs to ensure that the developments are helping local communities as well. LNG terminals create an abundance of jobs in the areas in which they are developed, meaning that they have a positive knock-on effect on economic growth locally, nationally and internationally. The US Government is looking at all of these issues, and many more in developing their evaluation of the potential for LNG liquefaction terminals in the US.

    Q12: As we all known, it’s the golden age of natural gas. But the changes on America make other countries feel terrible. Importers will choose American gas instead of Australia and Russia gas. What do you think about this kind of concern?

    Countries importing natural gas will choose to do so from the country that provides them with the best quality service at the most cost-effective price.

    According to the IEA, 12 countries, including Australia, Papua New Guinea, the U.S., Russia and Venezuela, are planning new LNG liquefaction terminals. If all these planned facilities are realised, the industry will have large supply capacity, of 555 mtpa by 2020.

    However, the global gas industry continues to evolve, with change taking place rapidly. The Fukushima nuclear outage, recession in Europe, delays in Australian and African gas supply, U.S. liquefaction plans, environmental questions over shale gas, European nuclear phase-out plans - coupled with emergence of new markets - are forcing companies and investors


continually to reformulate their investment and LNG strategies.

    Despite uncertainty over LNG prices, the natural gas market is robust, and a growing public consensus suggests that natural gas will be an energy source of choice for decades to come.

    Q13: Exporting LNG or not is still a question in USA, someone says that will threat your energy security. What do you think about that? Will you talk about this kind problem during LNG 17?

I think this will be a hot topic at LNG 17 hence we have a Spotlight Session on the North

    American LNG market, which will consider some of these issues.

    After Hurricanes Katrina and Rita in 2005, domestic natural gas production began to recede followed by growth in production relative to recent annual volumes. Beginning in 2007, natural gas production has increased for four years annually primarily due to the development of domestic, onshore, unconventional resources, specifically shale gas. The domestic natural gas resource base is large, estimated to be 2,170 trillion cubic feet, enough to meet America’s diverse energy needs for another 100 years. . In 2011, 89 percent of the

    natural gas consumed in the United States was produced in the U.S. The remaining 11 percent is imported from Canada along with a nominal amount of internationally traded liquefied natural gas (LNG).

    Advances in drilling and well completion technologies widely deployed during the past five years have given new momentum to the production of natural gas, particularly from shale formations.

    Technology now facilitates the production of economic volumes from organic-rich shales, which often cover large geographic areas. These tangible increases in U.S. gas production have influenced wellhead pricing and seem to point to relative price stability, reliable long-term supplies and coupled with natural gas from Canada and liquefied natural gas (LNG) opportunities for market growth.

    With continuing innovation, research and technology processes, advanced infrastructure and governmental support, as well as a substantial and a ready market with huge trade volumes, America has the right factors to work across the value chain to exploit unconventional gas to provide a healthy level of domestic energy security.

At LNG 17, we feature a Spotlight Session called The North American LNG Market Imports,

    Exports or Both? with 3 highly distinguished speakers who will cover key issues, including:


•What role does gas play in the North American fuel mix?

     •Will North America be a player in the LNG import market?

     •What are the implications of North American LNG exports on global dynamics?

     •Will gas exports be economically sustainable and competitive?

     •What role will shale gas play in the U.S. LNG market?

     •Pricing and contracting structures – short term and long term

     •Will the expansion of the Panama Canal have an impact on the North American market?

About LNG Fuel

    Q14: There is a separate pavilion dedicated to ‘LNG for Transportation’, that’s new. What’s your purpose? How do you make the idea?

    The Pavilion allows this special sector to showcase the progress and application of one of the biggest beneficiaries of LNG.

    The transportation sector is the single largest contributor to our oil demand. Natural gas can immediately be put to use across the country to fuel a wide range of transportation options, from fleet and light duty vehicles to heavy duty trucking and off-road applications. Some key drivers for consideration:

    ; Cost benefits

    o Natural gas costs from one half to one-third less than gasoline and diesel at

    the pump on an energy equivalent basis and, according to the U.S. Energy

    Information Agency.

    ; Ready market and infrastructure

    o There are more than 12 million natural gas vehicles (NGVs) in use worldwide,

    but only 112,000 NGVs on U.S. roads today. This presents huge opportunity

    for growth.

    o In the United States, about 30 different manufacturers produce 100 models

    of light, medium and heavy-duty natural gas vehicles and engines, and most

    major car companies, including Ford, General Motors, Chrysler, Honda, and

    Mercedes Benz, make passenger NGVs that are available in foreign markets.

    o There are approximately 1,000 NGV fueling stations in the U.S. and about

    half of them are open to the public.

    o Honda’s CNG Civic GX is available in the U.S. and in 2011 was ranked as the

    Greenest Vehicle by the American Council for an Energy Efficiency Economy

    (ACEEE) for the 8th year in a row.


    ; Environmental benefits

    o Using natural gas in place of petroleum-based fuels in vehicles results in a

    20-30 percent reduction in greenhouse gases on a well-to-wheels basis.

    o Natural gas has 80 percent fewer NOx emission than petroleum.

    o Natural gas emits virtually no sulfur dioxide, mercury or particulate


    o Natural gas as a transportation fuel offers the same mobility benefits while

    improving air quality.

At LNG 17, we also have a Spotlight session on the Potential Growth Markets for LNG LNG

    for Transportation which will expand on

     •LNG for long-haul trucking what are the success stories in this market?

     •LNG for marine transportation what are the global implications.

     •Small scale liquefaction – what are the opportunities?

    Q15: Early this year, president Obama said in a public speech that he would support American natural gas highway. How is the natural gas highway going? What’s the role of

    natural gas in the American energy plan?

The President envisioned a future where we ‘choose the path where we control more of our

    own energy’, and natural gas provides us with that opportunity.

    With at least a hundred years supply of domestic natural gas right here at home, the transportation industry will be a beneficiary of these new gas capacities. The increasing popularity of natural gas vehicles (NGVs) offers environmental and economic benefits while improving domestic energy security and job creation. Industry scenarios project NGVs could displace over 10 billion gallons of liquid fuels while saving consumers over $14 billion in annual fuel costs.

In past decades, we have successfully reduced or virtually eliminated petroleum use in

    other sectors, such as electrical generation, and home heating. Yet our transportation sector depends on petroleum for 94 percent of its primary energy.

    A smart path forward includes diversifying our transportation energy mix, and seeking to displace high cost imports with lower cost domestic alternatives. Greater use of natural gas as a transportation fuel delivers on both of these objectives.

    And while natural gas provides 24 percent of the primary energy used to drive our economy,


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