Liquefied Natural Gas Limited said that the Office of Fossil Energy of the Department of Energy (DOE), United States, has granted authorisation for Magnolia LNG to export up to 4 mpta of LNG, from its proposed LNG project site at the Port of Lake Charles, Louisiana.
The DOE authorisation is valid for LNG sales to commence within 10 years and is then for a period of 25 years from first LNG sales; which sales are permitted to all existing, and any future, countries that have, or enter into, a Free Trade Agreement with the Government of the United States.
The Magnolia LNG Project comprises the proposed development of an 8 mtpa LNG project on a 90 acres site, in an established LNG shipping channel in the La ke Charles District. The project is based on two 4 mtpa development phases, each phase comprising 2 x 2 mtpa LNG production trains, and will use the Company’s wholly owned OSMR ® LNG process technology.
The DOE authorisation, follows the Company’s recent si gning of a Site Option to Lease Term Sheet, with the Lake Charles Harbour & Terminal District (Port Authority. The Company is now:
- Negotiating a definitive and binding Real Estate Le ase Option Agreement with the Port Authority, together with the agreed form of Lease to be executed on Magnolia LNG, LLC exercising the site Lease Option;
- In discussion with a number of parties who have expr essed interest to enter in to a Tolling Agreement, under which the Tolling Party will be responsible for arranging gas suppl y to the Magnolia LNG Project and the LNG buyers and ships. The Magnolia LNG Project will treat and liquefy the gas, store the produced LNG and load the LNG onto the LNG buyer’s ships, in consideration of a Capacity Fee and Processing Fee; and
- Progressing work on the Magnolia LNG Project’s Pre File Application, which is required to be submitted to the Federal Energy Regulatory Co mmittee and represents the commencement of the project’s required permits and approvals process.
Managing Director Maurice Brand said “We are very pleased that the DOE authorisation had been received in accordance with the Company’s developmen t schedule. Our ability to meet key milestones will be a critical factor in discussions with potential Tolling Parties.”
Golden Pass Products said it has received authorization from the United States Department of Energy to export domestically produced natural gas as liquefied natural gas from the Golden Pass LNG terminal in Sabine Pass, Texas, to nations that have existing Free Trade Agreements (FTA) with the U.S.
The proposed project involves construction of natural gas liquefaction and export capabilities at the existing Golden Pass LNG facility. If developed, the project would represent approximately $10 billion of investment on the U.S. Gulf Coast, generating billions of dollars of economic growth at local, state and national levels and millions of dollars in taxes to local, state and federal governments. The project would generate approximately 9,000 construction jobs over five years with peak construction employment reaching about 3,000 jobs.
The proposed project would have the capacity to send out approximately 15.6 million tons of LNG per year. New infrastructure required to export will be located on the existing property, which contains two berths for LNG tankers, five storage tanks and access to the Golden Pass pipeline. The expanded facility would then have the capability and flexibility to both import and export natural gas.
As noted in the FTA application, Golden Pass also plans to submit an application to export LNG to non-FTA nations. A final investment decision will be made following government and regulatory approvals and will be based on a range of factors.
The Center for LNG praised a bipartisan group of 16 House Members who called for an expedited review process for applications to export liquefied natural gas (LNG).
The legislators – all representing districts in the western region of the United States – sent the letter to Steven Chu, Secretary of the U.S. Department of Energy (DOE), where all LNG export applications must be reviewed.
Led by Reps. Cory Gardner (R-Colo.) and Jim Matheson (D-Utah), the lawmakers noted that “Creating more opportunities to sell natural gas into global markets and access overseas customers could help the goals of increasing natural gas use and smooth out historical boom-bust cycles. Realizing sustainable natural gas prices will continue to stimulate the resurgence of U.S. manufacturing, power generation, chemical and agriculture sectors, as well as continue to keep costs low to heat our homes and fuel our nation’s transportation needs.”
The Center for LNG, a trade group representing the LNG industry, agreed with the lawmakers.
“Restarting the permitting process for LNG facilities would give the United States a unique opportunity to generate more public revenues, increase investment in the U.S. economy, create new jobs, and reduce our trade deficit,” said Center for LNG president Bill Cooper. “Promoting exports is a longstanding policy in the United States, including the President’s National Export Initiative, which is designed to create jobs by doubling U.S. exports by 2015.”
Yesterday’s letter follows a similar effort from earlier this summer, when a bipartisan group of 44 House lawmakers from Texas and Louisiana also wrote to DOE to encourage an expedited review of LNG facilities, bringing the total number of House Members supporting expedited approval to 82.
“This is yet another indication that Americans are ready to get back to work. Approving LNG export facilities would be a significant source of new jobs and will help re-grow our struggling economy,” Cooper added.
Three Democrats and 13 Republicans representing the states of Arizona, California, Colorado, Kansas, Nebraska, Nevada, New Mexico, Utah, and Wyoming all signed the letter.
The United States Department of Energy has granted Excelerate Energy a long-term, multi-contract authorization to export liquefied natural gas (LNG) to free trade agreement (FTA) nations from its Lavaca Bay LNG project, currently under development.
The company will be authorized to export up to 10 million metric tons per annum (mtpa) of LNG produced from domestic resources for a 20-year term commencing on the date of its first export.
Located on the Texas Gulf Coast, Lavaca Bay LNG will be the first floating liquefaction export facility in the United States and will utilize Excelerate’s Floating Liquefaction Storage Offloading vessel (FLSO™) technology.
The facility will require authorization from the Federal Energy Regulatory Commission (FERC).
Excelerate will begin the FERC pre-filing process fourth quarter 2012 and expects the facility to be in-service in 2017.
The Ministry of Commerce, People’s Republic of China, has granted consent to British Petroleum (BP), for an exploration drilling in the South China Sea in partnership with CNOOC, China Daily reveals today.
BP and the block operator CNOOC signed a deal for the exploration at the 43/11 deepwater block in South China Sea in January last year, but the agreement was subject to the Government’s approval.
This is BP’s second project in the deep waters of South China Sea after it had bought a stake in the Block 42/05 from Devon Energy China Ltd., in September 2010.
Asked when the exploration drilling would begin, BP China President Chen Liming told Reuters: “When we start depends on many factors, such as whether the drilling rig is ready. We hope to start drilling there by the end of the year.”
BP has been operating in China since the early 1970s and has business activities which include offshore gas production, chemical joint ventures, LPG import and marketing, oil product and lubricant retailing, chemicals joint ventures manufacturing ,technology licensing etc. According to China Daily, the British oil giant has so far invested more than USD 5 billion into China.
- BP Acquires Interest in Block 42/05 South China Sea
- China: CNOOC Signs Amendment Agreements to PSC for Three Deepwater Blocks
- China: Eni Signs MOU with Sinopec for Strategic Cooperation
- CNOOC to Spud South China Sea Wildcat in Coming Weeks
- Roc Oil Announces Beibu Gulf Project Final Investment Decision Approved
- Is War in the South China Sea Inevitable? (mb50.wordpress.com)
- South China Sea: The New Persian Gulf? (Defence IQ) (thuytinhvo.wordpress.com)
- China Budgets $11 Billion for Offshore Energy Development in 2012 (gcaptain.com)
- China’s South China Sea Gamble (imaginedregions.wordpress.com)