Export Projects Update (May 2015)

LNG Allies Member Companies

Delfin LNG. Delfin LNG (May 08) filed an application with the Maritime Administration and the US Coast Guard to authorize Delfin’s deepwater LNG export project to be located 50 miles offshore of Louisiana. The project contemplates four floating liquefaction vessels, an 50-mile pipeline, and onshore gas compression equipment. It would be capable of exporting up to 443.3 billion cubic feet (bcf) per year of natural gas or approximately 9.2 million metric tons per annum (mtpa) of LNG.

Texas LNG Brownsville. Texas LNG held community open house meetings in Brownsville (May 05) and Port Isabel (May 06) that were attended by over 300 individuals. Texas LNG is seeking authorization from FERC and DOE for a two-phase (4 mtpa total) LNG export project to be built at the Port of Brownsville, Texas, is partnered with Samsung Engineering on the project, and has received financing from Third Point LLC.

Projects Under Construction

Cheniere Corpus Christi. DOE (May 12) granted Cheniere Energy authority to export LNG from its project near Corpus Christi, Texas, to non-FTA nations. Cheniere also announced (May 14) that it has made a Final Investment Decision (FID) for the project and has issued a notice to proceed to Bechtel for construction of the first two natural gas liquefaction trains. Cheniere filed a FERC request (Jun. 01) to initiate the pre-filing procedures for Stage Three of the project, which includes two ConocoPhillips liquefaction trains, each capable of processing up to approximately 700 MMcf/day of natural gas and with average liquefaction capacity of approximately 5 mtpa. Finally, Woodside Petroleum Ltd. announced that, with the Cheniere Energy’s FID, the conditions precedent to its LNG sales and purchase agreement with [Cheniere] have been satisfied and that Woodside will purchase, on a free on board basis, approximately 0.85 mtpa of LNG from the second liquefaction train. Woodside will pay 115% of the monthly Henry Hub price plus $3.50 per MMBtu for the LNG.

Cheniere Sabine Pass. Cheniere Energy (May 29) is ready to start construction on an expansion of its Sabine Pass LNG export terminal, but can’t until FERC dismisses the Sierra Club’s request to intervene, Fuel Fix reports. “FERC cleared Cheniere to expand the terminal beyond the four trains already under construction in Louisiana in April, but the Sierra Club asked for a rehearing, delaying the project. Cheniere’s expansion… [would add] a fifth and sixth train [and] boost the terminal’s authorized processing capacity from 2.76 bcf per day to 4.14 bcf per day. The first train is expected to begin producing LNG this year with shipments going out by early next year.”

Dominion Cove Point. Patuxent Riverkeeper, Sierra Club, and the Chesapeake Climate Action Network filed a motion with the US Court of Appeals for the DC Circuit (Jun. 01) requesting an immediate stay of two FERC orders authorizing construction and operation of the Dominion Cove Point LNG export terminal in Lusby, MD, and to halt all construction on the project. The groups requested a ruling on their motion by June 17, 2015.

Freeport LNG. Freeport LNG filed a request with FERC (May 18) for initiation of the pre-filing environmental review process for the construction of a fourth liquefaction train, with a production capacity of approximately 5.1 mtpa, at its LNG export project currently under construction on Quintana Island, Texas.

Projects in Formal FERC Review

Magnolia LNG. Australia’s Liquefied Natural Gas Limited, the parent company of Magnolia LNG, announced (May 20) it had raised A$174 million to fund an “Early Works” program at the proposed 8 mtpa Magnolia LNG project. Expenditures on the full Early Works program will commence upon the execution of binding offtake agreements for at least two LNG trains with a current design capacity of 4 mtpa and the finalization of pricing for the EPC contract, with a view to ensuring first LNG is delivered to customers in late 2018. Proceeds will also be used for Bear Head LNG’s pipeline infrastructure development work and front‐end engineering design (FEED) for a full 8 mtpa export facility in Nova Scotia, targeting a 2016 final investment decision (FID).

Projects in FERC Pre-Filing Stage

Alaska LNG. Alaska LNG reports (Jun. 04) that engineering and environmental teams are at work, aiming to complete a $500 million pre-FEED, study by later this year for the project to transport North Slope gas for state use and exports through an 800-mile pipeline to Nikiski. The project is being planned by consortium of the three major North Slope producers, the State of Alaska (as a 25 percent partner), and pipeline company TransCanada. ExxonMobil is the project manager. A draft environmental impact statement, led by FERC is also underway, the formal FERC application is expected in Sept. 2016, and the final approval has been requested by July 2018. DOE issued (May 28) a conditional approval for the project to export LNG to non-Free Trade Agreement (FTA) countries. An export license to FTA countries was approved last November. DOE would allow exports of up to 2.55 billion standard cubic feet of gas per day. Final approval of the export permit is conditioned on the completion of the EIS and final approval by FERC.

Port Arthur LNG (Sempra). Sempra LNG announced (Jun. 03) that it has executed a non-binding MOU with an affiliate of Woodside Petroleum Ltd. to commence discussions and assessments for the potential development of Sempra’s proposed liquefaction project in Port Arthur, Texas. The proposed project would be located at a site previously permitted for an LNG regasification terminal and designed to include two liquefaction trains with a total export capability of approximately 10 mtpa, or 1.4 bcf per day.

Rio Grande LNG (NextDecade). NextDecade (May 13) has inked early contracts to build its $8 billion Rio Grande LNG export project in Brownsville, Texas, including a contract with CB&I to conduct the front-end engineering and design and to determine the project’s engineering, procurement, and construction terms. The project includes six liquefaction trains, two marine jetties, and a 130-mile pipeline from Brownsville to the Agua Ducle market hub near Corpus Christi. NextDecade anticipates final federal approval in early 2017 and a start to construction that year. Operations would begin in 2020.

Venture Global Calcasieu Pass. Venture Global (Jun. 02) has secured an additional 432 acres in connection with its proposed Calcasieu Pass LNG export project in Cameron Parish, Louisiana, bringing the total to 938 acres. The company (Jun. 01) also announced that it has raised additional financial capital of $84.5 million, bringing the total capital raised to over $210 million. “The equity was purchased by institutional investors who collectively manage assets exceeding $1 trillion.” Venture Global (May 29) says it remains on track to submit its final FERC application in August 2015 for the planned 10.0 mtpa LNG export facility.

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