Skip to comments.FERC approves Cameron LNG liquefaction, export project
Posted on 06/19/2014 12:38:44 PM PDT by thackney
The Federal Energy Regulatory Commission authorized Cameron LNG LLCs plan to build and operate facilities to liquefy and export natural gas from its existing LNG import terminal in Hackberry, La.
FERC also approved Cameron Interstate Pipeline LLCs application to construct and operate pipeline and compression facilities in Cameron, Calcasieu, and Beauregard Parishes to supply the Cameron LNG facility with domestically-produced gas. Sempra Energy Corp. owns the project.
The June 19 actions marked the second time FERC has approved an LNG export facility. It approved the Sabine Pass liquefaction project in April 2012, which is under construction. Sabine Passs application to expand the project is pending before the commission, along with 12 other LNG export proposals. The FERC permit is one of the last major regulatory approvals required to start construction on the $9-$10 billion natural gas liquefaction facility, Sempra Chief Executive Debra L. Reed noted.
The US Department of Energy awarded it conditional approval earlier this year to export LNG to countries that dont have a free trade agreement with the United States, including Japan and European nations, she said (OGJ Online, Feb. 11, 2014).
Cameron LNGs plans
FERC said Cameron LNG proposes to liquefy and export up to 14.95 million tonnes/year of gas, with a maximum operating capacity equal to up to 2.33 bcfd. Once placed into service, the terminal will be capable of liquefying domestically produced gas for export, importing LNG and regasifying it for domestic delivery, and importing foreign-sourced LNG for subsequent export.
Although the company would have the capability to liquefy domestic gas for export and regasify imported gas for domestic use, it does not plan to do both at the same time, the federal regulator said.
It said Cameron LNG proposes to construct and operate 3 liquefaction trains, each with a capacity of 4.99 million tonnes/year; an additional 160,000-cu-m LNG storage tank (the fourth at Cameron LNGs terminal); facilities to store refrigerants and condensate products and an associated truck loading/unloading area; a construction dock; and miscellaneous facilities and other minor modifications to existing facilities.
FERC said Cameron LNG proposes to phase in construction and service of the three LNG trains, with the first placed in service in 2017 and the other two in 2018.
Sempra Energy said it would have an indirect 50.2% ownership interest in Cameron LNG and the related liquefaction project, subject to a final investment decision to proceed by each party, finalization of permits, project financing and other customary conditions. The remaining portion will be owned by affiliates of GDF Suez SA, Mitsubishi Corp. through a related company jointly established with Nippon Yusen Kabushiki Kaisha (NYK), and Mitsui & Co. Ltd. (Mitsui), each with 16.6% stakes.
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 the Cameron LNG liquefaction projects leader.
US Sen. Mary L. Landrieu (D-La.), who chairs the Energy and Natural Resources Committee, welcomed the news. Cameron LNG will create thousands of high-paying jobs in Southwest Louisiana and will position America as an energy superpower, she said hours before opening a June 19 hearing examining the scope of natural gass domestic potential.
[DOE] should follow FERCs lead and issue the final approval for the project, and [it] should do so quickly so we can create 3,000 high-paying jobs in Southwest Louisiana, Landrieu continued.
In a separate order, FERC conditionally approved EcoEléctrica LPs proposal to amend its previous Natural Gas Act Section 3 authorization to import gas. EcoEléctrica proposes to build and operate the LNG Supply Pipeline Project at its existing LNG terminal and cogeneration facility site in Peñuelas, Puerto Rico.
The project will enable EcoEléctrica to supply LNG to a proposed non-jurisdictional LNG truck loading facility to be developed by Gas Natural Puerto Rico Inc., which in turn will be used to supply LNG to large industrial end-users, FERC said.
Cameron LNG is a liquefied natural gas (LNG) receipt terminal situated on an industrial-zoned site along the Calcasieu Channel in Hackberry, Louisiana. It is located 18 miles from the Gulf of Mexico and within 35 miles of five major interstate pipelines. The terminal is connected to these pipelines via the 36-mile Cameron Interstate Pipeline.
Construction on the Cameron LNG regasification terminal started in August 2005 and commercial operations began in July 2009.
The LNG receipt terminal has two marine berths capable of accommodating Q-Flex sized LNG ships, three LNG storage tanks of 480,000 cubic meters, and vaporization capability for regasification services of 1.5 Bcf per day.
Cameron LNG has access to a deep ship channel close to the shoreline and is far removed from highly populated residential areas. The terminal was developed to align with state and local government land-use planning efforts and is fully permitted.
In 2014 Cameron LNG will begin construction on new facilities to liquefy natural gas and export to the world market. Cameron will have bi-directional capabilities to export or import LNG based on changing market conditions. Read more about the expansion project here.
LNG is “Da bomb!”
LNG won’t even ignite until it is first heated up to a vapor then diluted down to 15% concentration with air. It is so light, that by that point, much of it has risen away from the source.
There is a reason we don’t routinely read about exploding LNG ships even after 50 years of use. It isn’t infallible, but it is safer than most other forms of equal amounts of energy.