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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

Carib Energy Granted ‘Small Scale’ LNG Export License

Jacksonville, FL – Carib Energy LLC has been granted a 20-year, small-scale US Department of Energy (DOE) export license for the supply, transportation and distribution of US-sourced liquefied natural gas (LNG) into several Non-Free Trade Agreement (NTFA) countries in the Caribbean, and Central and South America.

The licensing permits Carib Energy, a subsidiary of the Crowley Maritime Corp., to export 14.6 billion cubic feet (BCF) of LNG – roughly the equivalent of 480,000 gallons – per day via 10,700 gallon ISO-certified tanks to the specified regions.

Earlier in the year, the company was awarded a multi-year contract to supply containerized, US-sourced LNG to two Coca-Cola bottlers in Puerto Rico.

That contract included supplying and transporting the LNG to the two plants in Cayey and Cidra, Puerto Rico.

The LNG “provides both facilities with substantially lowered emissions, an alternative to their current diesel fuel source, and an uninterrupted fuel supply due to the abundance and availability of US-sourced LNG,” the company said.

The transportation of the LNG for all of the company’s new projects is being managed by Crowley’s in-house logistics team, which coordinates shipment of the 40-foot bulk liquid tank containers carrying the LNG from the company’s shipping terminal at the Port of Jacksonville, Florida.

The containers containing the LNG are ISO-certified and approved by the US Department of Transportation to carry approximately 10,000 gallons of the product.

LNG is natural gas that is cooled to -260° Fahrenheit until it becomes a liquid and then stored at essentially atmospheric pressure.

Converting natural gas to LNG, a process that reduces its volume by about 600 times allows it to be transported. Once delivered to its destination, the LNG is warmed back into its original gaseous state so that it can be used just like existing natural gas supplies.

When returned to its gaseous state, LNG is used across the residential, commercial and industrial sectors for purposes as diverse as heating and cooling homes, cooking, generating electricity and manufacturing paper, metal, glass and other materials.

LNG is not stored under pressure and it is not explosive. LNG vapors – methane – mixed with air are not explosive in an unconfined environment. When exposed to the environment, LNG rapidly evaporates, leaving no residue on water or soil.

Founded in 1892 in San Francisco, the Crowley Maritime Corp. entered the LNG market by acquiring Florida-based Carib Energy LLC last year.

Shortly thereafter, Crowley created a specialized LNG services group to offer supply, transportation, and distribution of LNG services utilizing the certified tank containers.

09/15/2014

Bechtel Advances Australia LNG Project

San Francisco, CA – Bechtel has successfully ‘hydro-tested’ two additional liquefied natural gas (LNG) storage tanks built on Curtis Island in Queensland, Australia.

The tests confirm that the tanks built for the Australia Pacific LNG and Santos GLNG plants are ready to store LNG and follow the successful test of a tank at the Queensland Curtis LNG project earlier this year. Bechtel is the engineering, procurement, and construction contractor for both projects.

Hydro testing takes between two and four weeks to complete. Water is pumped into each of the tanks and held for 24 hours while various tests are carried out.

Once testing is complete, it takes about five days to empty the tanks. Hydro-testing verifies that each tank can hold its design capacity of LNG at -260 degrees Fahrenheit.

Each of the QCLNG and GLNG tanks is capable of holding more than 140,000 cubic meters of LNG with Australia Pacific LNG’s tanks each holding 160,000 cubic meters.

In addition to the work on Curtis Island, Bechtel is the principal downstream contractor for the Chevron-operated Wheatstone Project in Western Australia.

Bechtel also constructed the LNG facility, in Darwin, in 2005 and is responsible for about half the LNG liquefaction capacity under construction.

International engineering giant Bechtel operates through five global business units that specialize in civil infrastructure; power generation, communications, and transmission; mining and metals; oil, gas, and chemicals; and government services.

Since its founding in 1898, Bechtel has worked on more than 25,000 projects in 160 countries on all seven continents. Currently, the company is involved in diverse projects in nearly 40 countries.

08/21/2014

 

Bechtel Completes Australian LNG Production Project

Gladstone, Australia – Bechtel has successfully delivered and installed all of the modules for the first liquefied natural gas production train at the GLNG facility on Curtis Island in Queensland, Australia.

The successful installation marks a major milestone in the construction of the plant, which will consist of two production trains, designated Trains 1 and 2.

Train 1 is made up of 82 modules that were built at a Bechtel-managed module yard facility in the Philippines and transported to Curtis Island over a 19-month period.

The modules for Train 2 are being constructed at the same facility and shipped to the island. The final modules for the second train are scheduled to be delivered and installed later this year.

US-based Bechtel is acting as the engineering, procurement, and construction contractor for three LNG facilities on Curtis Island.

GLNG, Queensland Curtis LNG, and Australia Pacific LNG are all being built simultaneously, side-by-side, making these projects the largest concentration of Bechtel work anywhere in the world.

In addition, the company is the principal contractor for the Chevron Wheatstone LNG project in Western Australia and constructed Australia’s first LNG facility, at Darwin, in 2005.

Global engineering giant Bechtel operates through five global business units that specialize in civil infrastructure; power generation, communications, and transmission; mining and metals; oil, gas, and chemicals; and government services.

Since its founding in 1898, Bechtel has worked on more than 25,000 projects in 160 countries on all seven continents. The company is currently involved in diverse projects in nearly 40 countries.

07/10/2014

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