Kinder Morgan's Gulf LNG Project Gets Green Light from FERC

The Federal Energy Regulatory Commission gave Kinder Morgan the approval to build its Gulf LNG export project in Mississippi in a 3-1 vote. The proposed project would add 11.5 million metric tons of new capacity to Kinder Morgan's terminal in Pascagoula, Mississippi, which would include two liquefaction plants.

Some Democrats opposed and concerned about LNG terminals' impacts on climate change, but FERC Chairman Neil Chaterjee praised the vote tweeting, "This is big news for the US & our allies. Today's approval of #GulfLNG is significant for the economy & America's geopolitical interests."

The company initially developed the Gulf LNG site as a liquefied natural gas import terminal in 2009. But with record production from U.S. shale plays creating a surplus of natural gas, the company filed an application with FERC in July 2015 seeking permission to redevelop part of the site as an export terminal.

The project will also modify the existing Gulf LNG Pipeline allow for bidirectional flow. It's the fifth LNG export project the agency has approved so far this year.

Source:
chron

LNG Limited to Boost Production Capacity at Louisiana Export Terminal

LNG Limited, an Australian company has been seeking permission from federal regulators to boost the production at its proposed Magnolia LNG export terminal in Louisiana. The company has already been authorized to produce 8 million metric tons of liquefied natural gas per day, but has made a request to increase the capacity to 8.8 million metric tons per year.

"LNG Limited is committed to building the safest low-cost and most efficient LNG export facility on the U.S. Gulf Coast," LNG Limited Chief Executive Greg Vesey said in statement. "We thank FERC for their previous diligence on Magnolia and are ready for the continued engagement as the agency performs analysis on Magnolia's capacity increase best answered through the preparation of a supplemental EIS."

A notice of intent to prepare a supplemental environmental impact statement for the production capacity increase was issued by Federal Energy Regulatory Commission on last Monday. The company is still waiting on its first supply contracts and a final investment decision on the Magnolia LNG project.

Source:
chron

Cameron LNG Reaches Final Stage of Train 1 Commissioning

Sempra Energy's Cameron LNG export terminal in Louisiana has reached the final stage of the startup process known as commissioning for its first production unit. The company is planning to construct three production units in total, which are known in the industry as trains at the Cameron LNG export terminal.

Joint venture with the general contractors McDermott International and Chiyoda International Corp. have started introducing natural gas from a pipeline feeding the facility into Train 1 of the liquefied natural gas plant, which signals the end of the construction phase of the project and is regarded as a precursor of LNG production.

"We are extremely proud of the Cameron LNG project team for this achievement and their remarkable safety performance," McDermott International Senior Vic President Mark Coscio said in a statement. "Their accomplishment is more than just a project milestone; it is an impressive feat of engineering and construction. Once Train 1 is fully operational, it will have the capacity to produce 4 million tonnes of LNG per year."

Cameron LNG began commercial operations in July 2009 as a $900 million LNG import terminal, but later Sempra Energy decided to take advantage of record natural gas production from U.S. shale basins to redevelop the Hackberry, Louisiana facility into an export terminal.

In addition to Cameron LNG, the company is also developing the Energia Costa Azul LNG facility in Baja California, Mexico and is seeking to develop the Gulf Coast LNG terminal near Port Arthur.

Source:
chron

$15 Billion Rio Grande LNG Gets Green Light from PHMSA

According to PHMSA’s Deputy Associate Administrator Massoud Tahamtani, the proposed Rio Grande liquefied natural gas export terminal project complies with federal pipeline safety standards. He noted that the facility is being designed to withstand winds up to 150 miles per hour, in a letter of determination made public early Tuesday morning.

FERC will use PHMSA's review to determine if the facility will receive a permit to start construction on six production units that will be able to make more than 16 million metric tons of LNG per year. A final permit decision by FERC is expected in July.

NextDecade Corp will be developing Rio Grande LNG which is one of two proposed export terminals being developed by the company. The company is also in the process of seeking state and federal approval to build the Galveston Bay LNG export terminal in Texas City.

NextDecade is expecting to make a final investment decision on the project during the third quarter, if approved by federal regulators. The liquefied natural gas export terminal and the supporting Rio Bravo pipeline are expected to result in more than $15 billion of private investment and create more than 5,000 construction jobs.

Source:
chron

Kinder Morgan Sells Stake in the Proposed Texas COLT

Kinder Morgan confirmed in a Monday afternoon statement that the company has sold its stake in a proposed offshore crude oil export terminal in the Gulf of Mexico known as Texas COLT to Enbridge, the lead developer in the project.

"Given the ongoing commitment required to move this project forward through the regulatory phase and, after an internal review within Kinder Morgan, it was determined that continuing with the project does not align with our strategic priorities," the company said in a statement.

Texas COLT was launched as a joint venture of Enbridge, Kinder Morgan and German marine terminal operator Oiltanking to accommodate Very Large Crude Carriers, or VLCCs. It was proposed to be built in an area of the Gulf of Mexico about 40 miles south of Freeport.

Enbridge officials said in a statement that the joint venture is moving forward without Kinder Morgan and will still be able to provide multiple varieties of U.S. crude oil for export.

"The COLT partnership, which combines Enbridge's leading North American asset portfolio with an international petroleum terminaling company in Oiltanking, continues to be central to the strength of the Texas COLT proposal," Enbridge stated.

Source:
chron

Lake Charles LNG: Final Investment Decision Taken by Energy Transfer and Shell

Energy Transfer and Shell announced that they had signed a project framework agreement to advance the proposed Lake Charles LNG export terminal and that they plan to issue an invitation to tender for engineering, procurement and contracting companies to start bidding on the project, in a joint statement released on Tuesday morning.

“We are pleased to be moving forward with Shell in progressing this major LNG export project," Lake Charles LNG President Tom Mason, President said in a statement. "We believe the combination of our assets and Shell's LNG experience will create a platform for exporting natural gas from the U.S. Gulf Coast to the global marketplace that is unmatched."

Shell entered into a 50-50 joint venture with Energy Transfer in 2016 to develop a liquefaction plant that can produce up to 16.45 million metric tons of LNG per year. Under the terms of their joint venture, Energy Transfer will own and finance the proposed liquefaction facility while Shell will oversee engineering, design and construction work as well as operate the terminal once it is complete.

"Lake Charles presents a material, competitive liquefaction project with the potential to provide Shell with an operated LNG export position on the U.S. Gulf Coast by the time global supply is expected to tighten in the mid-2020's," Shell Vice President Frederic Phipps said in a statement.

If built, the export terminal project is estimated to create up to 5,000 local jobs during construction and 200 full-time positions when fully operational. Shortly after the shale revolution in 2015 that created a surplus of natural gas in the United States, Energy Transfer got permission from Federal Energy Regulatory Commission to build an export terminal at the site in 2015. The facility site was originally developed as an LNG import terminal in 2006.

Source:
chron

$2.5 Billion Crude Oil Export Terminal and 700-Mile Pipeline Project Planned in Louisiana

Kansas-based Tallgrass Energy said that it and Drexel Hamilton Infrastructure Partners are building a crude oil export terminal on the Mississippi River and a 700-mile pipeline project. The new plans will be a $2.5 billion investment and create 35 permanent jobs.

The project will be built in Plaquemines Parish.

The Advocate reports the project is designed as a public-private partnership, with the Plaquemines Port Harbor and Terminal district providing multiple deepwater docks along the Mississippi River.

The project could be fully operational by mid-2020 and will be permitted for up to 20 million barrels of crude oil storage, according to Louisiana economic development officials.

Tallgrass says it has plans to build an offshore pipeline extension that will give the terminal the capability to load very large crude carriers.

Source:
Houston Chronicle