The U.S. Department of Energy has granted Pangea LNG Holdings, LLC, long-term, multi-contract authorization to export liquefied natural gas (LNG) to free trade agreement (FTA) nations from its South Texas LNG Project currently in development on Corpus Christi Bay.
Pangea LNG will be authorized to export up to 8 million metric tons per annum (mtpa) of LNG produced from domestic gas fields for a 25-year term commencing on the date of its first export. That amount is equal to 1.09 Bcf/day of natural gas.
Pangea LNG has also filed an application with DOE requesting authorization to export LNG to any country with which the U.S. does not have a free trade agreement in effect. That application, which was filed in December, is pending.
“Approval by the US DOE is a positive step forward for this project, which represents a significant investment in the development of the LNG market in the U.S.,” said John Godbold, Pangea LNG project director. “Exporting LNG will help stabilize U.S. natural gas prices, grow and sustain drilling and production jobs, and stimulate additional investment in developing the country’s gas reserves.”
DOE approval of FTA authorization is part of the regulatory process necessary to develop Pangea LNG’s new LNG export terminal on a 550-acre site. The site is located on the 45-foot deep La Quinta Ship Channel which is part of the Port of Corpus Christi, the sixth busiest U.S. seaport in terms of tonnage.
The South Texas LNG Project is subject to federal, state and local regulatory approvals with the Federal Energy Regulatory Commission (FERC) acting as the lead federal agency. Pangea will begin the FERC pre-filing process by the second quarter of 2013 and expects the project to be in operation by at least 2018.
FTA countries covered by the DOE authorization include Republic of Korea, Australia, Bahrain, Canada, Chile, Colombia, Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Mexico, Morocco, Nicaragua, Oman, Panama, Peru and Singapore.
Pangea LNG B.V. is a holding company with two major LNG export projects under development – the South Texas LNG Export Project on the Texas Gulf Coast and the Tamar Project in the Eastern Mediterranean. Pangea LNG is a developer of liquefaction projects which are designed to accelerate and support the monetization of gas reserves.
APGA filed a motion to intervene and protest in response to the application by Cheniere Marketing, LLC to export approximately 2.1 billion cubic feet per day (Bcf/day) of LNG from the proposed Corpus Christi Liquefaction Project to any country that the United States does not have a Free Trade Agreement (FTA) with.
To date, 20 applications have been filed at the Department of Energy (DOE) to export 28.67 Bcf/day of LNG to FTA countries. This equates to approximately 45 percent of our daily consumption. APGA members unanimously approved a resolution to oppose the export of LNG at the 2011 APGA Annual Conference.
In its filing APGA states that “proposed exports from Corpus Christi, Texas will increase domestic natural gas prices, burdening households and jeopardizing potential growth in the manufacturing sector, as well as the transition away from more environmentally damaging fossil fuels.” APGA’s comments also respond to a recently released DOE commissioned study on the macroeconomic impacts of LNG exports from the United States. Specifically, the comments state that although the study communicated that LNG exports will result in net economic benefits.
It also concluded that the higher the volume of LNG exports, the more domestic natural gas prices will rise. APGA’s filing concludes that “Cheniere’s proposal to export domestic LNG to non-FTA nations is inconsistent with the public interest because it will increase domestic natural gas and electricity prices to the detriment of all consumers, inhibit this nation’s ability to forge a path toward energy independence, and undermine sustained economic growth in key manufacturing sectors.”
Excelerate Liquefaction Solutions (ELS), a wholly-owned subsidiary of Excelerate Energy, has filed an application at the U.S. DOE to export up to 10 MTPA (approximately 1.33 Bcf/d) for a 20-year period.
ELS is seeking authorization to export LNG from the proposed Excelerate Liquefaction Project to be located in Calhoun County, Texas to any country with which the United States of America does not now, or during the term of the license requested will not, have a Free Trade Agreement (FTA) requiring the national treatment for trade in natural gas; that has, or in the future develops, the capacity to import LNG; and with which trade is not prohibited by U.S. law or policy.
This application represents the second part of ELS’s two-part export authorization request. On May 25, 2012, ELS filed in DOE/FE Docket No. 12-61-LNG its application requesting long-term, multi-contract authorization to export up to 10 MTPA of domestically produced LNG for a 20-year period commencing the earlier of the date of first export or seven years from the date authorization is granted by DOE/FE.
ELS requested that such long-term authorization provide for export to any country with which the U.S. currently has, or in the future may enter into, a FTA requiring national treatment for trade in natural gas, and which has, or in the future develops, the capacity to import LNG.
ELS requested authorization to export LNG on its own behalf and also as agent for other parties who hold title to the LNG at the time of export. DOE/FE granted this authorization to ELS in Order No. 3128.
If, in addition, this application for authorization to export to non-FTA Countries is granted, the combined effect of the DOE/FE Order addressing this Application and Order No. 3128 will be to authorize ELS to export up to 10 MPTA (equivalent to approximately 1.33 Bcf/d or approximately 502 million MMBtu per year) of domestic natural gas as LNG to any country with which trade is not prohibited by U.S. law or policy.
As such, grant of this application would not increase the total amount of natural gas that ELS would be entitled to export, it would only broaden the range of countries to which such natural gas could be exported.
- Trouble in China for U.S. LNG Exports? (investorplace.com)
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.
Main Pass Energy Hub filed an application with the U.S. DOE for a long-term, multi-contract authorization to export up to 24 million metric tons per annum (MTPA) of domestically produced LNG.
The company seeks this authorization for a 30-year period commencing on the earlier of the date of first export or eight years from the date the requested authorization is granted.
The company seeks authorization to export domestically-produced LNG from existing and new facilities that it intends to modify, build, and operate, located in Federal waters in Main Pass Block 299, 16 miles offshore of Louisiana (MPEH™ Deepwater Port) to any country with which the U.S. has, or in the future may have, a Free Trade Agreement (FTA).
- Corpus Christi, TX: Cheniere files permits to build terminal, export LNG (appliedagrotech.net)
- Pro-LNG Export Group Urges Chu to “Think A Little Differently” (mb50.wordpress.com)
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.
- USA: Golden Pass Files with DOE to Export LNG (appliedagrotech.net)
Golden Pass Products, a partnership of Qatar Petroleum International and ExxonMobil affiliates, has submitted an application to the U.S. Department of Energy (DOE) to export liquefied natural gas (LNG) from the Golden Pass LNG receiving terminal at Sabine Pass, Texas.
The proposed project involves construction of natural gas liquefaction and export capabilities at the existing Golden Pass LNG facility. A final investment decision will be made following government and regulatory approvals.
If developed, the project would represent approximately $10 billion of investment on the 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 currently 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.
The proposed expansion of Golden Pass is an opportunity to capitalize on America’s abundant natural gas resources. The Energy Information Administration’s Annual Energy Outlook 2012 shows that the United States has substantial gas supplies that can support gas exports, including LNG exports, over the longer term.
The application filed with the DOE is to export natural gas to nations that have existing free trade agreements (FTA) with the United States. A similar application is planned for non-FTA countries.
- U.S. Expected to Approve Expanded LNG Exports to Japan (mb50.wordpress.com)
- Pro-LNG Export Group Urges Chu to “Think A Little Differently” (mb50.wordpress.com)
- Houston, TX: OGS Wins FEED Work for Lavaca Bay LNG Project (USA) (mb50.wordpress.com)
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.