III. Description of Proposed Project

The proposed project, as described by SES in its FERC filings, would be an LNG storage and gasification facility situated on 25 acres at Pier T East (Berth126) at the Port. LNG would be shipped to California aboard ocean-going LNG carriers from gas-producing regions abroad. The LNG would be stored in two 160,000 cubic meter tanks, and then either (1) regasified for sale to natural gas customers in California or (2) sold as a liquid for use in LNG-powered vehicles in California. The facility would include an offloading dock, two LNG storage tanks, regasification facilities, a natural gas liquids recovery unit, and a truck loading facility. SES estimates that the proposed facility would be operational by 2007 or 2008, at a cost of about $400 million.

The project would provide an average of 600 MMcf/d of output into the SoCalGas intrastate pipeline system. It would not involve transportation or sales over the interstate natural gas pipeline system. SES intends to interconnect its facilities with SoCalGas' intrastate pipeline.