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Trade Group Urges DOE to Speed LNG Export Applications

Trade Group Urges DOE to Speed LNG Export Applications

Los Angeles, CA – Despite its recent approval of a pair of major liquified natural gas (LNG) export operations, the US Department of Energy (DOE) needs to speed-up the process of green-lighting a number of other proposed LNG projects, says the American Petroleum Institute (API).

Charging that “dozens of other permits still face lengthy delays,” the trade group is urging the White House “to accelerate this process and work with leaders in Congress who have shown they are ready to strengthen America’s position as an energy superpower,” according to the industry group.

Both Sempra Energy’s Cameron LNG project in Louisiana and the Carib Energy LLC project in Florida were cleared for LNG exports to countries like those in the European Union that don’t have a free-trade agreement with the US.

The Federal Energy Regulatory Commission granted the $10 billion Cameron project a construction license in June after it was issued a conditional export permit by the Energy Department earlier in the year. Its Louisiana facility will be able to export up to 1.7 billion cubic feet of natural gas a day for up to 20 years.

The Carib Energy project was approved under a new process that allows the DOE to issue decisions on applications only after federal environmental reviews are completed.

An environmental review was waived for Carib Energy, a subsidiary of the Crowley Maritime Corp, because the exports would be coming from an existing natural gas liquefaction facility that’s already undergone the necessary assessments.

Carib’s operation would move up to 0.04 billion cubic feet a day of gas in ISO-certified LNG shipping containers to countries in the Caribbean and Central and South America.

09/25/2014

Sempra LNG Export Terminal Gets Green Light

San Diego, CA – The Federal Energy Regulatory Commission (FERC) has given Sempra Energy subsidiary, Cameron LNG, permission to site, construct and operate a natural gas liquefaction and export facility at the site of the company’s LNG (liquefied natural gas) receipt terminal in Hackberry, Louisiana.

The FERC permit is one of the last major regulatory approvals required to start construction on the $9 billion to $10 billion natural gas liquefaction facility.

The authorization approves the development of the three-train liquefaction facility that will provide an export capability of 12 million tons per year of LNG, or approximately 1.7 billion cubic feet per day (Bcfd).

The agency also authorized a subsidiary of California-based Sempra Energy to construct a 21-mile, 42-inch natural gas pipeline expansion of the Cameron Interstate Pipeline, new compressor station and ancillary equipment that will provide natural gas transportation for the liquefaction facilities.

Earlier this year, Cameron LNG was awarded conditional approval from the U.S. Department of Energy (DOE) to export LNG to countries that do not have free trade agreements with the US, including Japan and European nations.

Subject to a final investment decision to proceed by each party, the finalization of permits, project financing and other conditions, Sempra Energy will have an indirect 50.2-percent ownership interest in the Cameron LNG operation and the related liquefaction project.

The remaining portion will be owned by affiliates of GDF Suez S.A., Mitsui & Co Ltd., and a joint venture headed by the Mitsubishi Corporation.

“The liquefaction project is an international collaboration with our partners from Japan and France to create a world-class facility to deliver reliable LNG supplies for more than 20 years to some of the largest LNG buyers in the world,” said E. Scott Chrisman, vice-president of commercial development for Sempra LNG and project leader for the Cameron LNG liquefaction project.

06/20/2014