We have now resumed operations and are again servicing our customers from our three liquefaction trains, two LNG storage tanks and a single dock. With the return to service of our second dock anticipated in late May and third LNG storage tank anticipated this summer, the full restoration of the facility is nearly complete. Having now returned to operations, our focus going forward is to ensure that we remain a stable and reliable source of energy supply, helping to support energy security for our allies and ease pricing pressures globally.

Despite the challenging year we leave behind, I am optimistic for the future. As I look ahead, I think about the resiliency of our employees, and how they rose to the challenges we faced. Through diligence, hard work, and an unrelenting focus on the ultimate goal of returning to safe and reliable operations, we rebuilt our facility, implemented and executed on new and improved processes, training, testing and safety systems, and progressed our effort to restore confidence in our business and ensure that an incident like what occurred on June 8th will never happen again. I have immense pride in our organization, and I am extremely grateful for their efforts.

At a macro level, I am more bullish than I have ever been about sustained demand for LNG. I believe this past year was a turning point in the global energy transition – where both energy security and a lower carbon future share center stage. There is absolutely no energy source better fit for these mutually beneficial purposes than natural gas, and Freeport LNG is privileged to have a role in advancing these objectives on a global scale.

The hard lessons learned in 2022 will stick with and guide our company as we move ahead. We are committed to re-establishing our reputation as a reliable source of U.S. LNG for decades to come, and making Freeport LNG stronger and safer than ever.

June 8th

The Incident

At 11:28 a.m. central time on June 8th, 2022, the Freeport LNG facility experienced a boiling liquid, expanding vapor explosion that resulted in the release of LNG, leading to the formation and ignition of a natural gas vapor cloud, and subsequent fire at the facility. There were no injuries, and at no time did the incident pose a threat to the surrounding community.

In accordance with Freeport LNG’s safety design parameters, the LNG vapor cloud dispersion and ignition thereof were at all times contained within the fence line of the liquefaction facility, lasting approximately 10 seconds. The fire and associated smoke visible thereafter were from the burning of materials in and around the location where the incident occurred, such as piping insulation and cabling. With the assistance of local area emergency response personnel, the resultant fire was extinguished approximately 40 minutes after the initial incident.

While the burning of those materials resulted in carbon monoxide, nitrous oxide, particulate matter, sulfur dioxide and volatile organic compound emissions, these were of limited quantity due to the short duration of the fire and not at levels that posed a risk to Freeport LNG personnel or the surrounding community. There was no release of any other chemicals or substances from the plant during the event. Water used to suppress the subsequent fire was captured on site, and was tested and confirmed free of any harmful contaminants before being released or removed for proper disposal.

The incident occurred in pipe racks that support the transfer of LNG from the facility’s LNG storage tank area to the terminal’s dock facilities located on the intracoastal (i.e., north) side of Freeport LNG’s dock basin. None of the liquefaction trains, LNG storage tanks, dock facilities, or LNG process areas were impacted.

Why did this happen?

The safety and security of our workforce and surrounding community are Freeport LNG’s top priorities. Freeport LNG believes that transparency around the causes of this incident, and the remedial actions taken to ensure an incident of this nature never occurs again, is critical to maintaining public trust.

In coordination with local, state and federal officials, Freeport LNG retained a highly qualified incident investigation company, IFO Group, in order to identify the causes underlying the June 8th incident.

IFO Group’s Root Cause Failure Analysis (RCFA) report was independently conducted over the course of almost five months. IFO Group investigated the incident, collected and analyzed physical specimens from the incident, interviewed witnesses, reviewed process and design data, and ultimately developed the RCFA report, identifying specific causes that led or contributed to the June 8th incident.

IFO Group’s findings of direct, root and contribution causes were as follows:

Direct Cause

• Isolation of a piping segment containing cryogenic LNG without proper overpressure protection, which LNG then warmed and expanded due to exposure to ambient conditions, resulting in a boiling liquid, expanding vapor explosion, and the rupturing of the piping segment.

Root Causes

• Pressure safety valve (PSV) testing procedure and car seal program deficiencies;
• Failure to repurpose temperature indicator alarms used for cool down operations during commissioning on LNG piping that could warn operators of increasing temperatures in LNG piping during operations; and

• Operating procedures that allowed operator discretion to close valves that could allow LNG to be isolated in a piping segment.

Contributing Causes

• Failure of 2016 Hazard and Operability study to evaluate the potential for a blocked-in LNG piping segment with inadequate overpressure protection;
• Failure to utilize management of change process for revisions to tank management operating procedures;
• Failure to accurately and timely diagnose sudden pipe movement as being due to piping stresses from the overpressuring of an adjacent piping segment; and
• Operator fatigue as a result of significant overtime needs.

Addressing the Causes of the Incident

IFO Group proposed recommendations to resolve each of the root and contributing causes, and Freeport LNG is implementing each of those recommendations. Specifically, Freeport LNG has made significant enhancements to its PSV testing processes and car seal program, implemented procedural changes to avoid operating scenarios that could allow blocked-in LNG in piping segments, and revised its control system logic to alert control room operators to valve positions or temperature readings that indicate possible isolation of LNG in any piping segments. For example, as part of the PSV testing standard, all PSVs at the facility have been functionally tested and their car seal alignment verified. Freeport LNG is also updating its training program to address causes of the incident, as well as identification and diagnosis of abnormal operating conditions in the facility.

To supplement IFO’s report, Freeport LNG also engaged another independent consultant to perform a full review of its LNG storage and transfer operating procedures, its control systems maintenance and inspection procedures, and its personnel qualifications and training programs. As a result of this independent, multi-month review, Freeport LNG is implementing various recommended improvements in these areas. Additionally, Freeport LNG has undertaken a significant hiring effort to increase LNG plant employee staffing by over 30%, in order to reduce the amount of overtime, as well as create new functional departments within the organization that are focused on improved training, operational excellence, quality assurance, and business performance. Freeport LNG is also executing an extensive company-wide process safety management initiative to apply and reinforce process safety concepts into daily work processes across the organization.

Additionally, to prepare for its return to operations, Freeport LNG conducted refresher training with board operators, as well as held training on recognizing and reacting to abnormal operating conditions so that conditions similar to those observed leading up to the June 8th incident can be timely identified and properly assessed. Freeport LNG also conducted a briefing with local first responders on the June 8th incident covering lessons learned and the return to service plan for the facility to ensure that upon the recommencement of operations, everyone was ready. To further ensure a safe return to operations, a Hazard and Operability (HAZOP) Study was conducted for portions of the facility and recommendations identified and implemented, and a thorough Pre-Startup Safety Review (PSSR) was performed for the LNG transfer unit with action items identified and addressed to confirm the safety and integrity of the units.

Restoration of the Facility and Return to Service

Freeport LNG and the Pipeline and Hazardous Materials Safety Administration (PHMSA) entered into a Consent Agreement in August related to the June 8 incident that set the standards for the restoration and return to service of the facility. We expect our second dock return to service in late May and third LNG storage to return to service this summer, enabling us to reach full production levels for the facility.

Freeport engaged Kiewit Energy Group Inc. (Kiewit) to perform the engineering, procurement, and reconstruction activities necessary to implement Freeport LNG’s recovery effort. Kiewit has significant LNG facility experience including both greenfield and brownfield developments and large and small/mid-scale LNG projects. Kiewit has been involved in LNG projects from start to finish, including front-end engineering design, detailed engineering, procurement, construction and commissioning.

Initial operations, which resumed in February 2023, consist of three liquefaction trains, two LNG storage tanks and one LNG loading dock, enabling delivery of approximately 2 BCF per day of LNG, enough to support our long-term customer agreements. We expect our second dock and third LNG storage to return to service in May, enabling us to reach full production levels for the facility.

Freeport LNG is committed to emerging from the June 8th incident with an unmatched focus on safety, operational integrity and operational excellence.

We strive to be a model employer. We believe employees should work under safe, healthy, respectful and fair conditions. We implement strategies that encourage and leverage the unique contributions of employees with diverse backgrounds, while also giving them opportunities to learn and grow. We believe this builds a collaborative culture that upholds the principles that define us as a company and drive our actions.

Freeport LNG believes that a well-trained workforce provided with the necessary tools and support, sets us up for success. Through a combination of work assignments, on-the-job experiences, and focused training and education, employees acquire the necessary skills and competencies to take on increasing levels of responsibility and job complexity.

We fund employees’ post-secondary educational goals up through the Master’s Degree level, as well as external professional certifications and continuing education requirements to support those certifications. We encourage attendance at professional conferences and targeted technical training.

Internally, employees adhere to a strict training schedule that helps to achieve safe, reliable and efficient operations that comply with regulatory requirements and industry best-practices. This training is conducted through hands-on, classroom and online coursework covering a wide variety of topics.

In response to the June 8 incident, we launched several key additional employee trainings that included:

• Delivering Process Safety Management training for 95%+ of workforce
• Kick off of Learning Management System implementation
• A reformatted Basic Operator Training to increase depth of understanding and efficiency

Trainings

Building a Skilled Workforce

Freeport LNG employs highly qualified individuals and is continually investing in the development of their skill sets.

All employees undergo regular training in areas within and outside their job role based on their defined training plan. Through a combination of work assignments, on-the-job training, training simulation, professional development, and focused continuing education, employees perform their work competently and safely. They continue to acquire the necessary skills and competencies to take on increasing levels of responsibility and job complexity. As noted above, following the June 8^th incident we are significantly increasing Process Safety Management training, among others, to further reinforce a safe work environment.

Talent Attraction and Retention

We value the diverse strengths of our employees who each bring their unique skills and experience to our team. As part of the Freeport LNG team, employees work side by side with top performers in the LNG industry.

Freeport LNG is unique in terms of our location. With headquarters located in Houston, the global energy capital, and the Terminal facilities located on the Gulf Coast in Brazoria County, an epicenter of industrial, petrochemical, and natural gas-related activity, hiring local talent is a convenience we don’t take for granted.

We believe that when employees are fairly compensated, work in a safe environment, and are provided excellent benefits for them and their families, they have peace of mind.

We dedicate ourselves to developing our employees and preparing them for the next level of opportunity. When we must look outside of our workforce for talent, we offer referral bonuses to employees for referring highly qualified candidates.

As the demand for LNG talent in the United States has increased with recent new entrants into the market, Freeport LNG’s employees are natural targets of our competitors given their notable specialized LNG industry experience. While we have seen some employees leaving Freeport LNG for other opportunities, resulting in a slight year-over-year increase of our historically low turnover rate, we have had significant success in retaining the vast majority of our workforce.

Lifestyle and Benefits

To support our employees and their families, we provide a highly competitive compensation and benefits package. When employees know that their loved ones are cared for, they incur less stress and perform better.

We encourage our employees and their families to live an active and healthy lifestyle. Incentives include a reimbursement for memberships to fitness centers and classes, annual health assessments, and online educational resources related to health and nutrition.

Wellness Initiatives

In 2022, we implemented an inaugural wellness program. The program was comprised of an overall point system to award people for participating in wellness events that included a company hosted wellness fair, physical wellness events, and mental and financial wellness webinars hosted with Houston Methodist Hospital, Fidelity and HSA Bank.

Physical fitness aspects of the wellness program included a summer fitness camp, a step challenge, onsite chair massages, and corporate 5K races.

We look forward to building on the success of this program in the years to come.

Talent Management

Employee Engagement

Employee engagement is a key tenet of our organization. We conduct a monthly safety and communications meeting at both our Terminal and Headquarters locations that are open to all employees. Our CEO issues quarterly updates to all employees, and we maintain a well-updated website. We also conduct regular lunch and learns around IT, cybersecurity, and other topics and make significant additional employee investments in safety awards, employee accomplishments, training, etc.

In 2022, we launched a companywide employee survey. The response rate for the survey was 87%, which was far higher than the survey provider average. We analyzed the results, created and delivered on communications to employees and completed several post-survey action plans. We will continue to address feedback from these survey results, working to incorporate employee sentiment into the success our business going forward.

We also continued our FLNG 101 speaker series which are sessions held companywide to educate our employees on a variety of company topics and internal initiatives.

We look forward to continuing all of our employee engagement activities in 2023 and beyond, bolstering our commitment to involving and educating our employees on key organizational events, initiatives and milestones.

Identifying and managing business and financial risks and opportunities presented by the impacts of climate change is critical to the success of our business. Capitalizing on the opportunities to provide clean energy solutions, for the betterment of our society and the world as a whole, takes a focused and disciplined approach to identifying, managing and mitigating risks to our business presented by climate change. In 2017, The Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) established recommendations for voluntarily climate-related reporting, including with respect to governance, strategy, risk management and metrics. Freeport LNG has voluntarily implemented many of the TCFD disclosure recommendations.

The TCFD recommends outlining potential climate risks into categories that affect our industry. The TCFD divides climate risks into two major categories: (1) physical risks – those related to the physical impacts of climate change; and (2) transition risks – those related to the transition to a lower carbon economy. Transition risk is further divided into four categories: policy and legal risk; technology risk; market risk; and reputation risk. Physical risk is divided into acute and chronic risk.

In the tables below, we have identified potential climate related physical and transition risks affecting our business, potential opportunities presented by climate change, and descriptions of the potential financial impacts for each. We continually identify and monitor these and other evolving risks and opportunities through our Enterprise Risk Management and ESG committees.

Climate protection and preservation are foundational tenets of our business. Our liquefaction facility is the largest all-electric motor-driven LNG production plant of its kind in the world, and the only one in the United States. The LNG we deliver is the most environmentally sustainable of any LNG produced today.

Worldwide, coal serves as the primary power generation source of electricity, despite its high carbon emissions intensity. According to the United Nations, the global population is projected to grow to over 8.5 billion people by 2030, nearly a 700 million person increase over 2021. As the standards of living among growing populations improves, ever-increasing energy resources will be required to meet their power needs. Freeport LNG is uniquely positioned to meet the challenges of the growing global energy economy, providing an environmentally responsible alternative to the deployment of more coal and other dirtier fuels to meet increasing power generation needs. As we move forward from 2022 and the increase in coal penetration due to the war in the Ukraine, the importance of accessible LNG globally was made even clearer if the world is to come close to decarbonization goals.

Our use of electric motors allows us to reduce associated plant emissions by over 90% relative to the typical natural gas-fired LNG plant. This not only safeguards the air in our communities, it also enables us to produce LNG with significantly lower carbon intensity relative to our competitors.

In addition, our use of electric motors allows Freeport LNG to take advantage of its location in one of the most diverse renewable power generation markets in the United States. In 2022, wind, solar and nuclear power comprised approximately 40% of the electricity generated on the Electric Reliability Council of Texas (ERCOT) grid, representing twice the U.S. national average. As the renewable share of ERCOT generating capacity continues to grow over the coming years, this will further reduce the carbon intensity of LNG produced at the Freeport LNG facility, and enhance the already significant environmental benefits associated with the LNG we deliver.

In order to further capitalize on the unique environmental benefits of our low-carbon LNG, efficient operations are top of mind. As we continually optimize our facilities to maximize LNG production, we drive down the per-unit environmental impact of the energy we deliver. The more volumes Freeport LNG places in the global market, the greater our contribution to the critical transition from coal and other dirty fuels to a clean energy source with less waste and fewer global emissions.

The competitive strength of our low-carbon LNG allows us to take advantage of growing market demand for sustainable LNG supplies, and furthers the already substantial environmental benefits inherent in LNG’s displacement of coal-fired electric generation in China, India and even Europe after their transition away from Russian gas in 2022. We are heavily engaged in marketing our low-carbon LNG. Low-carbon LNG’s growth in global importance also presents additional opportunities to further reduce lifecycle emissions associated with LNG, including with respect to enhanced carbon efficiency in gas supplies and in LNG shipping.

As we transition to a carbon neutral global economy, the world has an opportunity to lower its carbon footprint with energy technology that’s readily available today in the form of LNG. Freeport LNG stands uniquely ready to support this long-term transition, by providing some of the lowest carbon-intensity LNG available in the world.

There is simply no better tool than natural gas to enable a sustainable global energy transition, balancing environmental stewardship in developed countries with ensuring their populations access to readily available, secure, affordable and flexible energy supply to heat and cool homes and keep businesses operating. In developing regions, wealth continues to grow, with millions more people needing access to affordable and sustainable energy every year. Natural gas has a transformative role to play in the developing world, providing the foundational building block for improving lives, increasing opportunities and lifting people out of poverty. Freeport LNG plays a leading role in this societal progress, providing the unique energy source needed to meet our critical environmental and humanitarian objectives.

While adherence to strict local, state and federal regulatory requirements establishes a baseline that governs our overall environmental management, our climate strategies take us above and beyond these requirements, marrying our environmental stewardship with our efforts to advance the sustainability of our product.

With approximately 90% fewer emissions than turbine drive facilities, we provide our customers and ultimate end consumers with low carbon LNG. Our electric drive motors enable us to take advantage of the high and growing relative percentage of renewable power in the Texas energy grid, further enhancing the low-carbon intensity of our LNG. These incredibly efficient electric drive motors, coupled with our APCI main cryogenic heat exchangers, also provide opportunities to optimize our production to deliver incrementally more LNG with the same kit and power usage – thus lowering the carbon intensity of each BTU of LNG produced.

As a largely tolling facility, we do not control the incoming gas flows and power consumption for the majority of the LNG we produce. However, for the portion of gas and power purchases we do control, we are working to develop procedures whereby the carbon intensity of the LNG we delivering can be measured. For example, we are able to secure renewable power supply from the Texas grid, and we have fully implemented third party carbon intensity certification capability for LNG we deliver in accordance with the framework established by the International Group of Liquefied Natural Gas Importers.

We live in the community where we operate. Measurement of emissions and detection of potential issues is a paramount focus, enabling us to assess our overall emissions and identify gaps in measurement and emissions control. This effort takes us beyond minimum regulatory requirements, and allows us to understand every component of our emissions to ensure successful mitigation where needed.

Though a private company, we have always been transparent with our key stakeholders and, with our continuation of this annual report, the public at large. We are proud of our leadership position in the energy transition and want to use our data and success to promote both ourselves and our industry – LNG is the fuel that will secure the prosperity of developed countries, and satisfy the energy needs of growing global middle class in the developing world.

We are committed to the responsible and proactive management of important ESG impacts, risks and opportunities. This includes a strategic focus on ensuring that our operations are resilient in the global energy transition and deliver lasting value to our customers and stakeholders.

With sustainability as our focus, we continue to support the transition to a lower-carbon future. We are strategically focused on continuous improvement of our environmental performance and disclosures, and we are advancing several key projects and initiatives that are indicative of our commitment to lessening our carbon footprint across our operations.

Construction of our Noble Gas Project is underway with expected in service in Q2 2024. The project will extract helium from compressed natural gas returned from liquefaction to our Pretreatment Facility in our boil-off gas pipeline.

Helium is a finite resource characterized by the United States Department of the Interior as a critical mineral vital to the nation’s security and economic prosperity. Extraction of helium associated with the production and storage of LNG is one of only three ways that helium can be captured. The primary application of domestic helium use is in magnetic resonance imaging machines for medical diagnostics, space exploration, and defense systems. Our Noble Gas Project promotes economic and energy efficiency by capturing a finite resource that would otherwise be lost and putting it to beneficial use.

We are working with Talos Energy to develop a carbon capture and sequestration project immediately adjacent to Freeport LNG’s natural gas pretreatment facilities. Talos is initially assessing the feasibility of local sequestration of the PTF acid gas stream, which accounts for approximately one-half of Freeport LNG’s total GHG emissions.

Front-end engineering and design work for our Marine Barge Terminal Project has been completed. We intend to seek the regulatory authorizations to construct the project in 2023, which could enable a 2025 in-service date. This project will enable LNG bunker barges to lift LNG from our facility for ship-to-ship delivery to LNG-powered seagoing vessels utilizing LNG as a cleaner burning alternative to other marine fuels, thereby directly supporting the reduction of GHG, sulfur, nitrogen oxide and other emissions in maritime transport and furthering Freeport LNG’s overall climate objectives, both regionally and globally.

Operating with a commitment of environmental stewardship means that we have a responsibility to leave the environment in a better condition than how we found it each and every day for the good of our workforce, the communities in which we work and live and the world-at-large.

Keeping environmental preservation top of mind requires us to satisfy stringent regulatory requirements around air emissions, water protection, waste disposal, leak prevention, land management, and other aspects of environmental protection.

Freeport LNG’s operations are regulated by state and federal agencies. We also work closely with local agencies to ensure that we safely and successfully manage our operational footprint in the local community.

As it pertains to state and federal oversight of our operations, the regulatory process starts with the Texas Commission on Environmental Quality (TCEQ). The TCEQ regulates emissions from all of Freeport LNG’s facilities. Freeport LNG holds permits issued by the TCEQ that outline pollutant limits for all emission points. The TCEQ also defines many of our operating parameters.

When it comes to regulating Freeport LNG’s pipelines and underground natural gas storage facility (UGS), we adhere to guidelines set by the Railroad Commission of Texas (RRC). In addition to operating our pipelines within RRC regulations, we also adhere to regulations set forth by the Pipeline Hazardous Materials Safety Administration (PHMSA).

From a federal oversight standpoint, Freeport LNG’s operations are regulated by the Federal Energy Regulatory Commission (FERC). FERC authorizes construction and regulates operation of LNG facilities.

Managing LNG cargoes that arrive at our docks means working with and abiding by regulations set forth by agencies that regulate waterways. Freeport LNG works closely with the U.S. Coast Guard (USCG). The USCG regulates all waterside operations as well as safety and security of the LNG facility under the direction of the Department of Homeland Security.

Rounding out the federal regulatory oversight of our operations, is the Environmental Protection Agency (EPA). The EPA regulates all of the site’s water discharge in the form of storm water and process wastewater.

Knowing the environmental significance of the Quintana area, Freeport LNG took special care in facility design. Not only are there delicate wetlands around our facilities, but the region also has a long history as a commercial shrimping and sport fishing center and lies in North America’s most active flyway for migrating birds. Our goal is to ensure that our operations preserve and maintain the ecosystem and enhance the environment around us.

Our environmental stewardship began as the company initiated site selection, engineering, and permitting of the original LNG import project. This commitment has become a hallmark of how we construct and operate our facilities.

When it comes to conservancy, we seek to increase the quality and scope for each type of wetland that we may impact and to preserve or create new habitats for coastal fish and wildlife species. Freeport LNG has donated nearly 350 acres of land containing various types of habitat to conservation groups and manages another 35 acres of created wetlands at and around our facilities on Quintana Island. These areas host a variety of shore and wading birds, including roseate spoonbills, gulls, avocets, stilts, and many others.

Managing Effluents

Managing the discharge of liquid waste in all of its forms is a vital part of our environmental stewardship. We have developed extensive plans and procedures to assess, store, transport, and dispose of effluents including wastewater, storm water, process water, and sanitation wastes.

As it relates to the water used for emergency response/firefighting during the June 8 incident at our liquefaction facility, that water was captured on site in our secondary containment systems. No water left the site. Water that was contained in the LNG tank 1 area of the facility was removed from our site by a vacuum truck and transported for proper off-site disposal.

The water contained within the LNG Tanks 2 and 3 containment area was tested several times per environmental safety protocols and was then released through our permitted outfall once it was verified to meet all effluent test requirements.

Freeport LNG has implemented thorough spill prevention control and countermeasures to minimize the likelihood of an effluent breach. However, should a spill occur, we strictly adhere to our control and response measures to help protect the safety of our personnel, community, and environment.

Resource Recycling and Waste Management

Freeport LNG has made a strong commitment to recycling materials at all sites. We have been able to recycle soils, rock, concrete material, and even vegetation. For example, to build up the terminal site, we used dredged material and soil from our marine-berth area, which avoided hauling fill material to the site and reduced traffic on the island. Sand obtained from the dry excavation of the marine basin was separated and used for padding the pipeline trench during pipeline construction. We also used material that was excavated during the construction of our barge dock to create new wetland areas along the Intracoastal Waterway.

Boil-off gas created while the LNG facility is operating is not vented or flared but recovered and sent via pipeline to the pretreatment facility where it is used as fuel for a gas turbine power generator and fired heaters. Freeport LNG employs advanced recycling methods to capture waste heat from the generator and applies it to regenerate materials used in the gas pretreatment processes.

At our facilities, we follow waste-minimization plans and waste storage and labeling procedures. A qualified and licensed third-party has been contracted to collect, transport, and properly dispose of our hazardous and non-hazardous waste and to assemble data about those collections to prepare for submittal to the appropriate regulatory agencies.

Freeport LNG’s reputation was tested in 2022. Our success depends on our ability to meet our stakeholders’ expectations without risk to the community, the environment, our employees and our business. Our commitment to responsible operations extends to making a positive impact on the local community beyond our fence line. At the heart of this success is building and maintaining the distinctive culture that drives our workplace and differentiates us in our industry.

Freeport LNG works closely with local communities where we operate to help support their needs and earn their trust. We collaborate with stakeholders, elected officials and community leaders to invest in programs that promote local economic growth and improve social conditions. We hold memberships in local business and industry organizations, supporting them through the time and talents of our employees. Over the years, we have built a reputation as a credible, accountable, generous and trustworthy neighbor.

Local Stakeholder Engagement and Access to Information

Freeport LNG makes good faith efforts to notify all affected stakeholders regarding project activities, including landowners, towns and communities, and local, state, and federal governments and agencies. Freeport LNG is an active member of and contributor to the Brazosport Community Awareness and Emergency Response (CAER) network. CAER provides information to the community in the event an emergency should occur from one of CAER’s member companies. CAER also provides trained personnel and equipment from area industry to respond to emergencies, and conducts annual joint emergency response drills with CAER members based upon different scenarios. Additional information regarding CAER is available at https://www.brazosportcaer.com..., where members of the public can sign up to receive notice of emergency situations or critical community alerts.

Freeport LNG’s community and stakeholder engagement was brought front and center on June 8, 2022. Within fifteen minutes of the June 8^th incident, Freeport LNG initiated its emergency response with notifications to Freeport Fire Department and CAER who, in turn, initiated further notifications to other emergency response organizations. Several public communications were also made via Facebook within an hour of the incident, informing the public that there were no injuries, that all personnel had been accounted for, that there was no risk to the surrounding community, and ultimately that the situation had been stabilized and an investigation had been initiated. Additional status updates were provided to CAER throughout the day, and information regarding the incident was provided directly to regional community and industry leaders to further ensure broad distribution of accurate information, including the Brazoria County Commissioner, Brazoria County Judge, Brazoria County Sherriff’s Office, Freeport Mayor, Freeport City Manager, Town of Quintana Mayor, Surfside Mayor, Oyster Creek Mayor, Port Freeport, Dow, BASF, Philips66, ME Global and CPChem. Town of Quintana residents were further notified via the town notification system that no evacuation was initiated or in place.

In the months following the June 8^th incident as we moved toward the February 2023 restart of operations, Freeport LNG sought to keep stakeholders and the public regularly informed as to the incident, its causes and the ongoing recovery effort through postings on Freeport LNG’s website, press releases, and briefings with officials. Information on the incident itself, as well as the independent findings of IFO Group regarding the causes of the incident, were released to the public in November 2022. Freeport LNG also publicly released details of the company’s coordination with local, state and federal officials regarding the incident response and investigation, as well as information regarding the corrective actions undertaken by Freeport LNG.

Freeport LNG maintains a website (www.freeportlng.com) where up-to-date relevant information is provided to stakeholders and members of the community, including information regarding the June 8^th incident. Additionally, important safety information is also available on this website. Any organization or member of the public can express their views, comments or grievances at any time to Freeport LNG directly by utilizing the “contact us” feature on the website or by contacting us toll free at 1-800-303-6545. Freeport LNG also mails out relevant information to affected landowners during various stages of new development projects.

Should a member of the public wish to file a comment or grievance with FERC directly, they can do so through the FERC eComment feature on their website https://ferconline.ferc.gov/FE... .

Key Stakeholder Engagements

Public Presentations: We maintain relationships with numerous stakeholders and organizations so that we can work proactively to address the community’s concerns and needs. Examples of this engagement include:

• Conducting one-on-one briefings throughout a project cycle with elected officials of all levels of government;

• Making presentations at local city council meetings;
• Delivering public presentations to local economic development organizations, chambers of commerce, business organizations, trade organizations, and civic organizations such as Rotary International;
• Conducting informational briefings with local public school districts and Brazosport College;
• Holding open houses and meet-and-greets, where information is shared about our company and relevant projects; and
• Visiting near-neighbor Home Owners’ Associations to provide updates on project advances.

Community Advisory Council

Freeport LNG is a member of the Brazosport Community Advisory Council (CAP). The CAP is made up of 8 local industrial facilities and a diverse group of community citizens. The panel meets every other month and provides a forum for candid conversation about industry-related issues of community interest or concern, key projects and safety and environmental performance. Open, honest dialogue makes industry members aware of what the community expects of us and helps community members understand what industry members produce and how they operate. The primary issues addressed include facility operations, environmental concerns, safety, security, emergency preparedness and quality of life issues, including industry involvement in the community.

We continue to seek different platforms to engage with each stakeholder group to receive feedback on key issues as it pertains to our business.

Creating dialogue with our stakeholders has given us valuable insight into the issues that face our community, company and industry. It gives us insight into needs and expectations. We have leveraged the feedback from stakeholders to assess how the company is allocating resources to ensure the most effective and impactful sustainability performance.

Respect for Indigenous Peoples and Cultural Preservation

We respect indigenous peoples and aim to preserve the culture of indigenous communities near our operations. During our permitting processes, we notify federally recognized Native American Indian tribes that have potential interest in the general area where Freeport LNG’s facilities are to be built for our planned activities. Additionally, Freeport LNG maintains an Unanticipated Discoveries Plan that includes a provision to contact Native American Tribes, if warranted.

Freeport LNG sends information to these Native American Tribes to provide an opportunity for them to review and comment on proposed developments. They can report a grievance at any time to Freeport LNG by utilizing the “contact us” feature available on our website (www.freeportlng.com) and to FERC through direct government-to-government coordination or the eComment feature on their website https://ferconline.ferc.gov/FE... .

Stakeholder Feedback

We value all input from the community but when we receive a question or concern from a stakeholder, it is our desire to respond as quickly as possible so the matter can be properly and promptly addressed. First, our Public Information Officer receives notification and registers the issue along with the concerned party’s contact information. We then respond to that stakeholder to confirm that their comment was received and that we are looking into the matter. Third, we route the matter to the proper department or individual or, if needed, escalate the issue to senior management. The Public Information Officer will then monitor progress toward resolution of the matter, and communicate a proposed resolution to the stakeholder or seek additional feedback as needed. Our hope is to successfully resolve all matters. If an issue remains unresolved, we will continue to monitor the situation for possible future action.

Contributing to the communities where we live and work is a top priority for Freeport LNG. We are honored to donate time, money, and resources to worthy causes that improve the lives of our employees, their families, and their neighbors.

To guide our social investment activities, Freeport LNG developed a Corporate Citizenship Roadmap providing priorities for Corporate Citizenship and Philanthropic activities. This strategy is aligned with our corporate objectives and purpose as well as the economic, social and environmental dimensions of sustainable development. Our performance aligns with international standards, including the United Nations Sustainable Development Group (UNSDG) guiding principles. This includes our focus pillars of:

• Public Safety
  
• Education & Workforce Development
• Environment and Wildlife Sustainability
• Access to Quality Healthcare
• Quality of Life

We provide philanthropic funding and employee volunteerism to support these pillars. This strategy is continually buttressed by our stakeholder engagement efforts that keep us abreast of, and aligned with, community needs and priorities.

In 2022, we invested nearly $1.7 million in our local community through charitable donations and contributions, and made an additional $500,000 in multi-year pledge to the Brazosport Cares Food Pantry.

Freeport LNG is proud to provide financial support to local emergency response organizations as part of an annual tradition of annual community giving. We have written agreements with various emergency response organizations, including Freeport Fire Department, Freeport Police Department, Brazoria County Sheriff’s Department, CAER and the U.S. Coast Guard, that commit Freeport LNG to fund the cost of emergency response drills and provide LNG fire training. Fighting an LNG fire takes specialized training. Every year, Freeport LNG provides intense specialized training for our own employees and the fire fighters of the Freeport and Oyster Creek Fire Departments. Training is conducted at the industrial fire training school of the Texas A&M Engineering Extension Service in College Station, Texas or the Industrial Rescue Instructional Services Facility in Beaumont, Texas. During the multi-day course, a variety of experiential exercises are used to demonstrate the properties of LNG and the safest ways to combat possible emergency scenarios.

For more than 15 years, we have donated funds for equipment such as patrol boats and SUV’s, beach rescue vehicles, and RADAR guns. Over the past 5 years, Freeport LNG has made over $150,000 in monetary and in-kind donations to emergency response organizations, including Freeport Fire & EMS, Oyster Creek Community VFD, Oyster Creek Police Department, Brazoria County Peace Officers, Brazoria County Sheriff’s Department, Angleton Police Officers Association, Lake Jackson VFD, Clute Fire Department, Rivers End VFD, Surfside Beach VFD, and Jones Creek Fire Department. In March 2022, Freeport LNG donated $20,000 to the Village of Surfside to purchase a patrol vehicle, following the destruction of a majority of the department's vehicles during Hurricane Nicholas in 2021.

While unfortunate that the June 8th incident occurred, Freeport LNG is proud of the emergency response by its own personnel and the network of Brazoria County emergency response organizations. The integrity with which incident response was carried out demonstrated the efficacy and importance of the emergency response drills and training regularly conducted in partnership with local responders and officials. This advance training and preparation allowed for a calm and quick reaction to protect the public, our employees and our environment. The emergency response community, including industry partners, came together quickly to assist, and we are grateful for their efforts and their commitment to the safety of our personnel and the surrounding community.

Freeport LNG commits both time and money to bring these values to life, building a pipeline of talented future candidates of employment with our company and other industrial companies in the area. The ability to hire, develop and promote educated, competent employees allows us to fulfill our objective of maintaining safe, efficient, and cost-effective operations, and enhances our ability to effectively grow our company and manage our business.

Freeport LNG invests the largest portion of our charitable funds in the education space, including K-12 future readiness and scholarships for those advancing to the next level in academic or technical trades.

One of our signature education programs is the annual Brazosport College Gator Classic Golf Tournament underwritten by Freeport LNG. The event raises scholarships for students at Brazosport College. In 2022, the tournament netted $46,000 for the scholarship fund.

One of our proudest achievements, in support of education and workforce development, is the establishment of a Freeport LNG scholarship for the benefit of veterans, filling the gap in funding that the Texas Hazelwood Act does not completely cover.

A second signature program of ours is the support of public school district education foundations, primarily funding programs focused on science, technology, engineering and mathematics (STEM), as well as career and technical education (CTE). These foundations provide funding for programs and activities that could not be funded under a school district’s operating budget.

In addition to these key programs, we are proud to support several other education and workforce development initiatives annually. In 2022, our commitments spanned the following key projects and programs:

• In January, Freeport LNG held a mid-year school supply drive for the Brazoria County public school district. This drive was intended to replace the most needed items by students and teachers that are often depleted by mid-year.

• In March, Freeport LNG sponsored and attended the Women in Industry conference held at Moody Gardens in Galveston. Company representatives spoke with high school and college students interested in careers in industry. Freeport LNG also sponsored registration for a group of female career and technical education students from Brazosport ISD.
• As a part of International Women’s Day, Freeport LNG sponsored and attended the Women in Manufacturing event in April. This annual event is hosted by local Brazoria County industry partners to facilitate networking, while honoring women in industry careers. Attendees and honorees have the opportunity to participate in panel discussions where perspectives of women leaders in industry are shared.
• Freeport LNG is a long-standing supporter of the Brazoria County Petrochemical Council (BCPC). In May, the BCPC held a Signing Day event where 43 Brazoria County High School graduating seniors were offered jobs with local industrial companies. Two of these students started work at Freeport LNG as contractors.

• In September, Freeport LNG sponsored the first-ever Women’s Welding Competition in conjunction with the organization Industry After Hours (https://industryafterhours.net...). Proceeds from the event benefitted career and technical education programs in Brazosport ISD.

Power generation from natural gas emits 50-60% less carbon dioxide than a typical new coal plant. However, Freeport LNG’s commitment to the environment does not stop there. We have donated nearly 350 acres of undeveloped land containing various types of habitat to conservation groups, and we manage another 35 acres of wetlands that we have created at and around our facilities on Quintana Island. These areas host a variety of shore and wading birds, including roseate spoonbills, gulls, avocets, stilts and many others.

The Gulf Coast Bird Observatory’s Neotropical Bird Sanctuary on Quintana Island is a popular site for observing many varieties of migratory birds, featuring walking trails, freshwater ponds and park benches, and is one of the sites for the annual Great Texas Birding Classic. This event draws thousands of visitors to the island each spring. Freeport LNG is an annual sponsor of the Birding Classic, and has donated an observation tower so that visitors can see a variety of views of the migrating birds.

In the Fall of 2022, Freeport LNG pledged $15,000 to the Community Outreach Committee of the Brazoria County Petrochemical Council (BCPC) in support of construction of a playground made of recycled plastic located at the Surfside Beach jetty. The playground will encourage the community to recycle plastic, noting why it is important to keep plastic out of our oceans. This playground project is supported by Brazoria County and the Brazoria County Parks Department, who is providing the space, installation and upkeep of the playground. The playground is expected to be completed in the spring of 2023.

We invest in safe, quality healthcare for the benefit of our employees and their families and for the communities where our employees live and work. Strong, vibrant, thriving, resilient communities are those with the best level of healthcare. Our focus is on access to quality facilities, advancing research, supplying equipment, and training. We also invest in programs that encourage individual and family wellness.

Every year, a team of company representatives participates in the annual the Susan G. Komen Race for the Cure in Houston. In 2022, employee contributions to the Komen organization totaled nearly $30,000.00 and Freeport LNG, along with four individual members of the company’s Race for the Cure team, were honored as part of the Pink Honor Roll recognition reception, an event that honors top corporate sponsors.

Committing for Life

Freeport LNG employees save lives by participating in quarterly blood drives at Freeport LNG’s worksites. Up to three lives can be saved through a single blood donation.

Investing In Diversity Initiatives

In support of both our quality of life pillar and our education and workforce development pillar, Freeport LNG is dedicated to investing in and supporting organizations, initiatives and programs that work to ensure that all people have fair and equitable access to education and economic opportunities. Notable 2022 contributions from Freeport LNG that embody this commitment include:

• Being recognized as Large Business of the Year by the Brazosport League of United Latin American Citizens (LULAC) Council
• Supporting the Houston Area Urban League (HAUL) as a gold sponsor of their 2022 Advancing Equity Luncheon. As part of the luncheon, attendees received HAUL’s 2021-2022 Impact Report that contained a story about a student who was able to attend Lone Star College because of scholarship money HAUL was able to provide her, due in part to Freeport LNG’s 2020 diversity gift.
• Attending in August 2022 the Houston Health Foundation My Brother's Keeper (MBK) scholarship awards luncheon. The event recognized the recipients of scholarships made possible by a $1 million donation by FLNG. In 2022, MBK Houston scholarship awards in the amount of $195,000 were presented to 20 recipients.

Investing In Community

Our employees are passionate about engaging in our community and we encourage them to contribute to the communities where they live and work. This enables our employees to make more meaningful and personally rewarding impacts.

Corporate Matching Program

To further leverage the generosity of our workforce, Freeport LNG provides up to $10,000 of dollar-for-dollar match of an employee’s personal donations to eligible non-profit organizations. This allows employees to double their impact to the organizations that matter most to them. In 2022, this yielded close to $153,000 in additional investments to deserving non-profits.

General Community Outreach and Stakeholder Engagement

Since our founding in 2002, Freeport LNG has cultivated relationships with community partners and other key stakeholders and constituents. Being deeply involved in the community is something that is part of the fabric of our company culture. Every year, Freeport LNG attends and/or participates in key community initiatives that work to foster positive engagement with organizations and individuals alike. Our involvement in these initiatives includes:

• Participating in a local Brazoria County Leaders Think Tank. This group convenes to discuss and share information relative to a variety of events and issues in the area. The group is challenged to not only learn more about what’s going on in the community but to generate and support ideas to solve a variety of issues.
• Being part of the Brazosport Business Roundtable, a group of community business and civic leaders who meet to share and exchange information in order to better support our community. The Brazosport Business Roundtable has met continuously for more than twenty-five years.

Freeport LNG maintains a structure of checks and balances that preserves and creates value for our business, aiming to meet our commitments to our customers and other stakeholders. Our board of managers is comprised of executive leadership, investor representatives and industry experts who oversee our company performance and business operations.

Our corporate governance system is designed to ensure that the company is managed in the interests of its equity investors, including minority investors, and that the board has appropriate control and oversight responsibilities.

Board of Managers

Our board of managers is responsible for risk oversight, including financial, construction and operational risks. The board works to ensure that Freeport LNG conducts its business responsibly and ethically, with a focus on sustainability, safety and strict adherence to all laws and regulations. The board appointment rights in favor of our shareholders ensures the independence of our board, with seven of our eleven board members being independent. The remaining four members of our board are members of the company’s executive leadership. Our board is actively engaged in the management of our business, with near perfect attendance by all of our board members at our quarterly and special board meetings in the past year.

Bios for our current board members are available on our website at www.freeportlng.com.

Audit Committee

Our audit committee oversees accounting and financial reporting processes and the audits of our financial statements. The audit committee is chaired by an independent manager. The audit committee supports adherence to internal controls over financial reporting and encourages continuous improvement and maintenance of open channels of communication among the board, our independent auditor, financial and accounting management, internal audit and legal and compliance functions.

Construction Committee

Our construction committee oversees the permitting, construction and planned operation of projects constructed or proposed to be constructed by Freeport LNG, and advises the board and management of the company on the development and progress of such projects, including project health, safety, and environmental policies and performance, project execution status, project management team resources, project staffing, and EPC contract matters and claims. The construction committee is chaired by an independent manager, and supports adherence to company policies and procedures with respect to health and safety, regulatory and legal compliance, and project execution objectives.

Under our corporate governance structure, the board is directly representative of and accountable to our equity investors, and the short- and long-term interests of our investors and the board are directly aligned. This seamless alignment of interests between our company, its board and its investors, and the direct access that our investors have to company management and information, uniquely positions Freeport LNG to protect investor rights and interests and ensure strong corporate governance.

Oversight

Our ethics and integrity efforts are led by our VP, Government Affairs, Risk and Compliance and our SVP, Chief Human Resources Officer. These senior officers of the company manage and implement our ethics and compliance policies, and work with executive leadership to address concerns that may arise.

Policies

Our codes of conduct apply to all of our employees, and provide the framework for adherence to Freeport LNG’s values of honest and ethical conduct, and having a respectful workplace. Our policies outline our commitment to ethical behavior, timely and accurate reporting, regulatory compliance, and accountability. Our policies are reviewed and updated annually. We also conduct annual compliance and ethics training across our organization, with all applicable employees certifying that they have received, reviewed, understand and agree to adhere to our ethics and compliance policies. Our key policies, include:

• Anti-corruption policy;
• Gifts, favors and entertainment policy;
• Know-your-customer due diligence procedures policy;
• Conflict of interest policy;
• Guidelines for appropriate conduct policy;
• Internet code of conduct policy;
• Prohibition against threats and workplace violence policy;
• Equal employment opportunity policy;

• Anti-retaliation policy; and Anti-discrimination policy

Our employees completed over 1000 hours of compliance and ethics training in 2022.

Our anti-corruption and know-your-customer due diligence policies establish the necessary requirements to comply with applicable anti-corruption, anti-bribery and economic sanctions laws. Our anti-corruption policy prohibits facilitation payments and establishes guidelines for ethical behavior. Our suppliers are required to meet our standards of ethical business conduct, as well as comply with all applicable laws, including labor, health and safety, and environmental laws. During the prequalification process and throughout supplier engagement, we conduct risk assessments of our suppliers on their regulatory compliance and financial stability.

Collectively, our policies support our ability to maintain the highest standards of conduct and ethics among our employees, suppliers and business partners.

Reporting Concerns

If an employee observes a violation of our codes or policies, they have been trained to contact their supervisor, another member of company management, or a human resources representative. Employees may also report concerns confidentially, with the option to remain anonymous, via email or through our employee hotline. Once we receive a report, it is assigned to the appropriate person for investigation. As part of our annual compliance and ethics training, we inform employees on methods to report ethics concerns. Our anti-retaliation policy strictly prohibits any form of retaliation against employees who make good-faith complaints, or report, file, testify, assist, or participate in any manner in any investigation or other proceeding conducted by or with respect to the company. Any personnel involved in retaliation are subject to appropriate disciplinary action, which may include termination of employment.

In addition to implementing robust internal control processes to comply with existing regulations and proactively develop control mechanisms, we emphasize a focus on risk governance and implementation of processes to maintain an effective risk culture.

Risk Governance

Our VP, Government Affairs, Risk & Compliance is generally responsible and accountable for our Enterprise Risk Management (ERM) program, and chairs our risk committee, which is comprised of senior executives and managers from across the organization. The risk committee meets on a quarterly basis to define, review and update the top existing and emerging risks to the organization. Once defined, risks are assigned to risk owners, and measured based on probability and severity. Risk mitigants are detailed and those mitigants are updated regularly. Annually, our VP, Government Affairs, Risk & Compliance briefs the board regarding the status of the company’s ERM program and top risks. Internal Audit periodically audits the entire ERM program process and reports findings to the Audit Committee.

Sensitivity Analysis and Stress Testing

We conduct comprehensive scenario analysis and stress testing. The risk committee evaluates top risks of the organization, and conducts stress testing or sensitivity analyses on selected top risks annually. Analysis and testing is performed at the functional department level, where deep subject matter knowledge can drive thorough consideration of specific risks, various potential events and outcomes, and scenario evaluation. Results of these exercises are presented to the risk committee, and included in the reports to the board.

Risk Culture

In order to promote and enhance an effective risk culture, company goals and compensation are tied to certain risk mitigants, including safety performance. In addition, the ERM process provides members of the risk committee with training on risk management principles and processes, and encourages promotion by those managers of an effective risk culture across the organization. Our personnel are trained to report potential risks to supervisors, senior management, or confidentially via our employee hotline. Our anti-retaliation policy strictly prohibits any form of retaliation against employees who make good-faith reports of potential risks.

LNG exports from Freeport LNG offer an opportunity to play a key role in the global transition to cleaner, less carbon-intensive energy sources. This compels our board and executive leadership to clearly articulate and execute upon strategies for managing such risks and capitalizing on such opportunities.

Oversight of sustainability is formally integrated into our governance structure, with established executive and board oversight of sustainability and social-responsibility issues. Our SVP & Chief Legal Officer chairs our ESG committee comprised of Freeport LNG personnel with relevant subject matter expertise from across the organization. The chair of the ESG committee liaises with the board regarding ESG risks and opportunities impacting our business, and our efforts to manage and address them.

Our supply chain management strategy is to access industry leading and innovative solutions that reduce cost, add value, while uncompromisingly supporting our safety, ethics, and business controls. Our procurement efforts prioritize local suppliers, provided they are able to supply competitive and quality goods and services, while meeting our high-performance standards. In addition to requiring that our suppliers commit to our standards for environmental protection, health and safety, regulatory compliance, cybersecurity, and insurance, we identify and actively manage the performance of our critical suppliers.

Awareness

Critical suppliers are those who provide products or solutions that are not easily substitutable, and the loss of which could result in significant adverse impact to our operations. We currently rank our critical suppliers into three categories: (1) those with respect to which supply chain failure could result in suspension of operations; (2) those with respect to which supply chain failure could disrupt operations, though not resulting in significant interruption of operations; and (3) those for which there are no practical substitutes.

Risk Exposure and Management

In evaluating supplier conduct, we place particular focus on compliance with health and safety protocols and insurance requirements. As part of the supplier onboarding process, all suppliers performing services at our operating facilities must attend a safety orientation in which they are familiarized with Freeport LNG’s health, safety, and environmental policies and procedures. Additionally, all suppliers performing risk-based services at our operational facilities must be qualified through a third party that reviews and certifies a supplier’s safety track record. This safety compliance is then monitored on a continual basis following onboarding to ensure continued compliance. We also use a third-party service to verify compliance with insurance requirements, both at onboarding and the full term of the supplier service. We also perform in-person risk review, including site visits if appropriate, with selected suppliers when quality issues or other important service issues are identified.

Organizations, large and small, have had their operations impacted by a range of breaches. At Freeport LNG, we take an aggressive approach towards cybersecurity, working daily to mitigate and manage threats and risks in order to maintain business continuity and prevent reputational harm.

Incremental improvements to Freeport LNG’s robust cybersecurity program continued to be made in 2022. These efforts primarily centered around enhancement of our detection and response solutions, cybersecurity hardening of vendor solutions, procedure refinement, risk measurement, microsegmentation and disaster recovery.

In the year ahead, we look forward to building on these efforts, bolstering our commitment to mitigating and managing cybersecurity risks. Key 2023 cybersecurity initiatives include:

• Penetration testing of the Industrial Control System (ICS) and Business Network;

• Implementation of enhanced detection capabilities on ICS, enhanced adaptive identity management and autonomous ransomware protection;

• Process enhancements, including a holistic approach to ICS disaster recovery testing, of cybersecurity awareness training adjusted to current techniques, greater network microsegmentation granularity, and enhanced change management and task workflows; and

• Review of next generation security solutions.

Freeport LNG advocates for appropriate representation in legislative, political and public discourse in a manner that protects our interests, and maintains the integrity of our business.

Our legal department organizes and manages government advocacy efforts pertinent to our business and public policy interests. Led by our VP, Government Affairs, Risk & Compliance, we develop and advocate policy positions through our participation in trade associations and partnerships, and engagement with federal, state and local government officials. All of our employees are expected to maintain the highest standards of ethical behavior in conducting any political advocacy, and to maintain full compliance with applicable laws and company policies. The board is provided regular updates regarding our governmental affairs advocacy.

Freeport LNG prioritizes engagement with industry, trade and business associations. Our participation in these organizations allows us to provide insight and expertise on policy and regulatory issues that affect our industry, business and operations. Major associations of which we are members include Natural Gas Supply Association/Center for LNG, National Association of Manufacturers, Texas Association of Manufacturers, Texas Oil & Gas Association, Texas Pipeline Association, and Texas Civil Justice League. In 2022, we incurred expenditures of

approximately $208,000 toward our membership with these trade associations.

Political Contributions

Freeport LNG does not have a political action committee or use company funds or assets make direct political contributions.

Lobbying

We engage with policymakers and advocate for policies, rules and legislation in the United States that support our strategic business objectives and promote the success of our organization. We comply with all regulatory standards associated with any political engagement activity. In 2022, we incurred expenditures of approximately $334,000 with external state and federal lobbyists.

(1) Conversion factor of .293071 MWh per MMBtu to convert the fuel from MMBtu to MWh units.
(2) split between renewable and non-renewable based upon proportionality of ERCOT grid. This is then applied to calculate our indirect emissions.

Freeport LNG Verification Opinion

Freeport LNG - LNG Carbon Intensity Stage Statement

GHG Emissions Stage Statement Without Scope 2 - CY2022

I. FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements,” as that term is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements are only predictions and are not guarantees of future performance. Readers of this report are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business of Freeport LNG that may cause actual results to be materially different from any future results expressed or implied in such forward-looking statements. Freeport LNG does not undertake, and expressly disclaims, a duty to update any of the forward-looking statements, which speak only for the date they are made.

II. NO REPRESENTATION OR WARRANTY

No representation or warranty, either express or implied, is made by Freeport LNG as to the accuracy, fairness, or completeness of the information presented in this report and no reliance should be placed on the accuracy, fairness, or completeness of such information. Freeport LNG undertakes no responsibility or liability to update the contents of this report in the light of new information and/or future events.

Descriptions of Freeport LNG’s various operational and compliance standards, practices, policies, procedures, and similar measures included in this report are for information purposes only, and do not constitute a guarantee or assurance as to their effectiveness, or that such measures will be universally applied. Implementation of alternative standards, practices, policies, procedures and similar measures in specific instances may be necessitated by particular facts and circumstances.

III. THIRD-PARTY INFORMATION

Some information used in this report was obtained from internal surveys, market research, publicly available information and industry publications. Although Freeport LNG has no reason to believe that any such information is inaccurate in any material respect, it has not independently verified data provided by third parties or by industry or other publications and therefore does not make any representation as to the accuracy of such information. Links to third-party websites are for readers’ convenience and information only, and Freeport LNG is not responsible for such websites or the contents therein.

IV. NO EXTERNAL AUDIT OR ASSURANCE

Neither this report nor the data presented in it have been externally audited, assured, attested or verified.