LNG Queue: One Out / One In
On Feb. 11, DOE /FE granted conditional approval for the application made by Sempra Energy to export natural gas from the company’s proposed LNG terminal in Cameron Parish, Louisiana. The DOE order permits 1.7 billion cubic feet per day to be exported from the facility, which brings total authorized LNG exports to ≈8.5 bcf feet per day.
Erik Milito, the American Petroleum Institute’s director of Upstream and Industry Operations praised the decision and urged DOE to quickly process all remaining applications, saying: “It’s a positive sign for the U.S. economy that [DOE] has continued to work through these export applications. The faster these terminals are approved, the faster Americans can enjoy the full benefits of the US energy revolution brought about by advancements in hydraulic fracturing and horizontal drilling. LNG exports represent an immediate opportunity to create thousands of jobs, grow the economy, and reduce our trade deficit. This facility alone promises a potential investment of over $4 billion, and each export approval strengthens our competitive position in the international market. We urge Energy Secretary Moniz to ensure that 2014 is the year we lock down America’s trade advantage as the world’s leading producer of natural gas.” (For the full API statement: Click Here.)
On Feb. 10, Excelerate Liquefaction Solutions (a subsidiary of Excelerate Energy) filed an application with the Federal Energy Regulatory Commission (FERC) to site, construct, and operate two floating liquefaction, storage, and offloading (FLSO) units and related facilities at the Port of Port Lavaca-Point Comfort, Texas. According to the application, “Each proposed FLSO will have an LNG peak production capacity of up to 5 million tons per annum (mtpa), for a total peak production capacity of up to 10 mtpa.”
Under U.S. law, FERC has authority to regulate the siting, construction, and operation of LNG export facilities while DOE /FE has authority to regulate the export of natural gas as a commodity. To read Excelerate’s FERC filing, Click Here.