Export Projects Update (02-17)

Cheniere Energy

Sabine Pass Liquefaction (Louisiana). According to data released (Feb. 17) by the U.S. Department of Energy (DOE), Sabine Pass shipped a total of 184 million tons of LNG to 17 nations in 2016. Latin America was the leading region (86 mt), followed by Asia (55 mt), the Middle East (24 mt), and Europe (19 mt). Exports from Sabine Pass began shipping in Feb. 2016 and increased throughout the year as Trains 1 and 2 were placed into service by Cheniere.

Sempra LNG & Midstream

Port Arthur LNG (Texas). Port Arthur LNG filed a formal application (Nov. 29) with the Federal Energy Regulatory Commission (FERC) for authority to build and operate a liquefaction and LNG export terminal at Port Arthur, Texas, and an interconnected pipeline. The project will include two liquefaction trains each capable of producing ≈ 6.73 million tons of LNG per annum (mtpa). Construction could begin in late 2018, with in-service dates of Q1-2023 and Q3-2023, respectively. Port Arthur is a joint venture of Sempra LNG & Midstream and Woodside Petroleum.

Tellurian

Company News. Tellurian, Inc. announced (Feb. 10) that the merger of Tellurian Investments and Magellan Petroleum Corp. had closed. Tellurian’s stock now trades on the NASDAQ under the ticker symbol “TELL.” As part of the merger, Tellurian appointed Antoine Lafargue as CFO. Lafargue was previously CEO of Magellan. Earlier (Dec. 20) Tellurian announced that Total had acquired 23% of Tellurian at $5.85 per share ($207 million). Tellurian President & CEO Meg Gentle said, “Total’s investment materially strengthens [our] position as a large infrastructure development company and is an important milestone in the growth of Tellurian’s LNG business, including the Driftwood LNG project in Calcasieu Parish, Louisiana. We welcome Total, one of the major global LNG operators, as a shareholder and look forward to delivering low cost LNG to the global market.” Tellurian also announced (Nov. 28) that GE Oil & Gas had made an investment ($25 million) in Tellurian.

Golden Pass Products

Golden Pass Products (Texas). FERC issued an order (Dec. 21) authorizing Golden Pass Products to construct and operate an LNG export terminal at the existing LNG import terminal near Sabine Pass, Texas. Golden Pass Products is owned by affiliates of Qatar Petroleum (70%) and ExxonMobil (30%). The proposed export terminal includes three liquefaction trains with a total production capacity of 15.6 mtpa of LNG, each train producing 5.2 mtpa.

Veresen

Jordan Cove LNG (Oregon). FERC issued a letter (Feb. 10) Granting Jordan Cove LNG authority to use FERC’s pre-filing procedures for Veresen’s proposed LNG export terminal at Coos Bay, Oregon, and Pacific Connector Gas Pipeline’s proposed 233-mile long, 36-inch, interconnected pipeline. In March 2016, FERC denied Pacific Connector Gas Pipeline’s application to construct the interconnected pipeline, and consequently the proposed LNG terminal application. Jordan Cove and Pacific Connector stated that they intend to file formal applications with FERC before the end of August 2017.

Lloyds Energy Group

Point Comfort LNG (Texas). Lloyds Energy filed an application with DOE (Dec. 23) for authorization to export up to 9 mtpa (1.25 bcf/day) of U.S. LNG over a 25-year period. Lloyds plans to export the LNG to nations having a Free Trade Agreement (FTA) with the United States from two floating liquefaction, storage, and off-loading units it intends to build, own, and operate near Point Comfort, Texas, on submerged lands currently owned by the Calhoun Port Authority. Lloyds also plans to file an application for authority to export LNG to non-FTA nations.

Other U.S. LNG Export Companies & Projects

Eagle LNG (Florida). Eagle LNG Partners filed an application (Jan. 31) with FERC for authorization to site, construct, and operate a liquefaction and LNG export terminal on the St. Johns River in Jacksonville, Florida. The proposed project consists of three liquefaction trains capable of producing up to 1.65 million gallons of LNG per day (approximately 1 mtpa). The LNG will be transported to markets in the Caribbean and Latin America for power generation, and to local and regional markets.

Elba Liquefaction (Georgia). DOE issued an order (Dec. 16) authorizing Southern LNG Co. to export up to 130 bcf/year of LNG from its planned export terminal at Elba Island, near Savannah, Georgia, to non-FTA nations (the same volume authorized for export to FTA nations). In approving the exports, DOE rejected arguments by the American Public Gas Association and Sierra Club. A week earlier (Dec. 09), FERC issued an order denying the Sierra Club request for rehearing of FERC’s June 1, 2016, order approving construction and operation of the proposed LNG export terminal and feeder pipeline. Construction of the LNG export project began on Nov. 1, 2016.

ENGIE (Cameron LNG, Louisiana). ENGIE and AES Andres (an AES Corp. subsidiary), announced (Dec. 01) a 12-year agreement to jointly market 0.7 mtpa of LNG in the Caribbean. Under the agreement, ENGIE will provide up to 0.7 mtpa of LNG, primarily from the Cameron LNG terminal in Cameron Parish, Louisiana (which is expected to come on line in 2018). AES Andres will provide access to its regasification facility in the Dominican Republic, which has an annual capacity of ≈1.5 mtpa.

Magnolia LNG (Louisiana). Magnolia LNG signed (Jan. 23) a non-binding Heads of Agreement (HOA) with Vessel Gasification Solutions, providing for a 20-year free-on-board sale and purchase agreement of up to 4 mtpa from Magnolia’s proposed LNG export terminal at Lake Charles, Louisiana. Earlier (Dec. 06), Magnolia and Meridian LNG Holdings Corp. extended the financial closing date for their LNG agreement from Dec. 31, 2016 to Nov. 30, 2017. Also, DOE issued an order (Nov. 30) authorizing Magnolia to export up to 394.2 bcf/year of LNG to non-FTA nations.

Shoal Point LNG (Texas). NextDecade announced (Jan. 17) that it had signed lease agreements with the State of Texas and City of Texas City for an 1,000-acre site at Shoal Point for the potential development of a LNG export facility. Texas City owns almost 376 acres at Shoal Point, while the Texas General Land Office manages the adjoining 618 acres of state land.

Toshiba (Freeport LNG, Texas). The Japan Times reported (Jan. 24) that Toshiba has signed a sales and marketing contract with JERA (a joint venture of Tokyo Electric Power Co. and Chubu Electric Power) to help find buyers for 2.2 mtpa of LNG which Toshiba is under contract to purchase from the Freeport LNG project under construction on Quintana Island, Texas. According to the report, Toshiba has buyers for about half of the LNG it is contractually obligated to purchase beginning Sept. 2019.

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