NORTH AMERICAN ENERGY TRADE

May 2, 2002

I. BAJA INTEGRATED GAS PROJECT

· Major LNG re-gasification and power generation complex near Tijuana in Baja California.

· Capacity of 750 million cubic feet per day for local use and export to U.S. California.

· Power generation – 400 megawatt natural gas-fired plant for local use and export to U.S. California.

· Environmental benefits: local wastewater treatment for use as process water and possible inclusion of 20 million gallon/day desalination unit for local market.

· Partners include Marathon, Pertamina, Golar LNG Limited, Grupo GGS, SA de C.V.

· Potential completion and startup in 2005

· Facilities include LNG marine terminal, off-loading terminal, onshore LNG re-gasification equipment, pipeline infrastructure, and electric transmission lines.

II. PROPERTIES OF LNG

· Market for natural gas is growing and portion of demand to be met by imported LNG.

· Stranded natural gas deposits as source supply.

· Currently four LNG import facilities: Everett, MA; Cove Point, MD; Elba Island, GA; and Lake Charles, LA.

· Cryogenic Liquid – lighter than water with a boiling point of –259F (-181C).

· LNG lighter than air.

· In laboratory and open ocean test there have been NO boiling liquid expanding explosions.

· LNG tankers are not floating bombs. There has never been a cargo explosion in the history of LNG transportation.

· LNG does not explode or burn. Gas needs to be in vapor form and mixed with air to burn.

· LNG pools on water vaporize rapidly.

· LNG carriers much more robust than typical crude, fuel and chemical tankers.

· Over 30 years of experience with marine transport of LNG with no major failures of carriers or cargo – inherently safer than other hydrocarbon fuels transported by ship.

· No environmental impact of LNG spills due to rapid vaporization.