Daily Archives: September 5, 2012
Corpus Christi, TX: Cheniere files permits to build terminal, export LNG
CORPUS CHRISTI — Cheniere Energy has filed for permits from the federal government to build its proposed liquefied natural gas terminal in San Patricio County.
The company’s subsidiary, Corpus Christi Liquefaction, applied this past week with the Federal Energy Regulatory Commission, or FERC, to build and operate the terminal along the La Quinta Channel near the Sherwin Alumina plant.
Liquefied natural gas, or LNG, is gas that is supercooled to liquid form for shipping. Cheniere then would export the product overseas.
The terminal — worth in excess of $10 billion — would feature storage tanks, docks and three liquefaction trains, or chilling facilities, each capable of processing millions of tons of natural gas.
Cheniere proposes processing about 1.8 billion cubic feet per day of LNG at the facility, drawn from sources including the gas-rich Eagle Ford Shale formation about 65 miles northwest of Corpus Christi.
The project includes a 23-mile pipeline that will tie in with the regional pipeline network.
Cheniere has more than 660 acres along the San Patricio County shoreline available for development, including a 52-acre piece under lease from the Port of Corpus Christi.
“After an eight month pre-filing process with the FERC, we have determined that our site at Corpus Christi meets all of the requirements of an attractive liquefaction project,” Charif Souki, chairman and CEO of Cheniere, said in a statement.
Cheniere once considered an LNG import facility at the same location. The import project received full approval from the federal government before plans were shelved because of market shifts.
That prior approval may help Cheniere with certain parts of its new export project during the approval process, company spokesman Andrew Ware said.
Company officials anticipate the terminal is on target to begin operation in late 2017.
Cheniere also applied for permission from the U.S. Department of Energy to export as much as 15 million tons per year of LNG from the site.
If approved, the department’s set of permits would allow Cheniere to export to all countries the U.S. has free trade agreements with and those it doesn’t, the company announced.
Due to an oversupply of natural gas in the U.S., low prices have made gas extraction less profitable.
Producers are flaring gas rather than selling it, which makes a case for exporting LNG to other countries, Ware said.
A condition of the Energy Department’s permission is that the company must prove there is an alternative public need for the gas the terminal will process, Ware said.
Cheniere also has applied for corresponding permits through the Texas Commission on Environmental Quality and air permits from the Environmental Protection Agency. The entire permitting process for the site is being marshaled by federal energy regulators, Ware said.
The company expects to have its regulatory approvals and financing commitments secure by early 2014, with construction beginning about that time.
Commercial agreements could be done by the third quarter of 2013.
Related articles
- USA: Golden Pass Files with DOE to Export LNG (appliedagrotech.net)
USA: DTE Energy, Enbridge and Spectra Energy Team Up to Build Gas Pipeline
DTE Energy, Enbridge Inc. and Spectra Energy Corp announced the execution of a Memorandum of Understanding to jointly develop the NEXUS Gas Transmission (NGT) system, a project that will move growing supplies of Ohio Utica shale gas to markets in the U.S. Midwest, including Ohio and Michigan, and Ontario, Canada.
The proposed NGT project will originate in northeastern Ohio, include approximately 250 miles of large diameter pipe, and be capable of transporting one billion cubic feet per day of natural gas. The line will follow existing utility corridors to an interconnect in Michigan and utilize the existing Vector Pipeline system to reach the Ontario market. Upon completion of the project, Spectra Energy will become a 20-percent owner in Vector Pipeline, a joint venture between DTE Energy and Enbridge.
The new pipeline will serve local distribution companies, power generators and industrial users in the Ohio, Michigan and Ontario markets. It will include interconnects with Michigan Consolidated Gas Company, Consumers Energy and, through the Vector Pipeline, the Enbridge Tecumseh Gas Storage facility and Union Gas’ Dawn Hub, both in Ontario.
The Partners have received expressions of interest for a significant level of firm capacity to anchor the project. An open season for the project is planned for fourth quarter 2012, with a targeted in-service as early as November 2015, depending on final market demand and commitments.
DTE Energy, Enbridge and Spectra Energy Team Up to Build Gas Pipeline, USA LNG World News.
Britain appoints oil and gas friendly decision-makers
(Reuters) – Britain sent a clear signal of support to its oil and gas industry when it named an advocate of shale gas fracking as environment minister and a wind farm sceptic as energy minister.
The appointments in Prime Minister David Cameron‘s ministerial reshuffle on Tuesday mark a departure from his pledge to run Britain’s greenest government, in favour of the fossil fuel sector that generates billions of pounds in tax revenue.
“There is a shift away from greener ministers in posts towards less green ministers and I think that’s serious,” Alan Whitehead, a member of the Energy and Climate Change Select Committee, said during an industry event on Tuesday.The government last year put a brake on the development of shale gas extraction due to environmental concerns after it triggered two small earthquakes near Blackpool.
But Owen Paterson, a member of Cameron’s Conservative Party who was appointed Environment Secretary in the reshuffle, has hailed the potential economic benefits of shale gas, a message likely to sway the country’s decision in favour of the drilling method.
“If developed safely and responsibly, shale gas could generate massive economic activity and a wealth of new jobs,” Paterson said in May, when he was Secretary of State for Northern Ireland.
He said huge shale gas deposits in Northern Ireland could be exploitable, adding that discoveries in the United States had shrunk its gas price to a quarter of British levels.
“(Shale gas) has also ended America’s dependence on unreliable and dictatorial regimes,” he said.
The decision on whether Britain will resume shale gas fracking, a method of drilling through shale deposits to retrieve gas by injecting liquids and chemical, is in the hands of the energy ministry, but support from the Department for Environment could speed up a decision.
NEW ENERGY MINISTER
John Hayes replaced Charles Hendry as Energy Minister in the reshuffle.
In his final media interview as Energy Minister, Hendry said a decision on shale gas was not imminent, but that Britain could not ignore its impact on the U.S. energy market.
Hayes has been a vocal opponent of wind farms, a technology the government regards as key to meeting climate change goals.
“Such tall structures will have a detrimental impact on the quality of life for local residents, the attractiveness of the area and its potential for tourism,” Hayes said at a local council meeting, reflecting the views of his constituents campaigning against the construction of a wind farm.
He said wind farms would always be backed up by conventional power plants because of their unreliability and that they had a detrimental impact on wildlife.
“Wind power (considerably) increases the average household energy bills as the profit-hungry energy companies continue to chase the taxpayer funded subsidies and credits,” the new Energy Minister said.
(Reporting by Karolin Schaps; Additional reporting by Susanna Twidale; Editing by David Cowell)
Related articles
- Pennsylvania’s Booming Shale Gas Energy Industry (tarpon.wordpress.com)