Start of Elba Island LNG Production Approved by FERC

Kinder Morgan’s request to start production of liquefied natural gas at the Elba Island export facility has been approved by U.S. regulators. This facility is one of half a dozen in the United States beginning to produce LNG for export.

The Federal Energy Regulatory Commission approved Kinder Morgan’s request to “commence service for liquefaction and export activities” at the first train in a filing dated September 30th.

The facility is able to produce around 3 million tons per day of liquefied natural gas. Periodic delays since late last year have led to start-up problems and the company had to tweak the setup of its 10 trains.

In 2018, United States has exported 22 million tons per day of LNG and this year 26 million tons per day of LNG has been exported so far.

Source:
pgjonline

FERC Granted Authorization for Jacksonville LNG Export Facility

U.S. Federal Energy Regulatory Commission has issued the order granting authorization for siting and constructing the proposed on-water Jacksonville liquefied natural gas export facility in Florida, Eagle LNG Partners LLC announced.

“The FERC authorization for Eagle LNG’s Jacksonville LNG Export facility has been many years and countless hours in the making. As one of only a handful of greenfield LNG project proponents to obtain their FERC Order, and the only project devoted to provisioning small-scale LNG projects in the Caribbean basin, Eagle LNG is one large step closer to delivering clean-burning, affordable, domestically produced U.S. natural gas.” said Sean Lalani, president of Eagle LNG.

The production capacity of the LNG export facility and terminal will be approximately 1.65 million LNG-gallons per day with 12 million LNG-gallons of storage plus marine and truck loading capabilities located on-site. The approximate construction cost of the export facility will be $500 million.

Once Eagle LNG’s Jacksonville LNG Export Facility is completed and its operations combined with Eagle LNG’s Maxville LNG Facility and the Talleyrand LNG Bunker Station, Eagle LNG will be providing the lowest cost LNG for bunkering in the southeast United States.

Source:
pgjonline

Two Companies Joining Forces to Build Proposed Pipeline for Rio Grande LNG

NextDecade and Enbridge signed a memorandum of understanding to develop the Rio Bravo Pipeline together, the two companies announced in a statement released early Wednesday morning. The two companies anticipate finalizing the terms of the MOU during the fourth quarter of 2019.

The partnership will build a pipeline that would move natural gas from the Agua Dulce hub near Corpus Christi to the proposed Rio Grande LNG export terminal at the Port of Brownsville. The approval is still pending from the Federal Energy Regulatory Commission.

"Enbridge is one of North America's leading energy infrastructure companies and we look forward to exploring a strong partnership in South Texas," NextDecade CEO Matt Schatzman said in a statement. "With its Texas Eastern Pipeline and recently completed Valley Crossing Pipeline, Enbridge has extensive permitting, construction, and operating experience in the State of Texas, especially in South Texas."

"We are excited to be working with NextDecade for pipeline solutions to the Rio Grande LNG facility," Enbridge President of Gas Transmission and Midstream Bill Yardley said in a statement. "Our existing infrastructure fits very well with the Brownsville location. This is a continuation of our strategy to bring our major projects execution and permitting capability to the expanding LNG export efforts in North America."

Source:
chron

Second Train Completed at Corpus Christi LNG Project

Train 2 of Cheniere Energy’s liquefaction project in Corpus Christi, Texas, has been declared substantially complete, Cheniere Energy announced Tuesday.

The engineering, procurement and construction partner for the project was Bechtel Oil, Gas and Chemicals. Cheniere said that the commissioning of Train 2 is complete and Bechtel has turned over care, custody and control of the facility to Cheniere.

The company now has seven liquefaction trains, five liquefaction trains in operation at its Sabine Pass LNG export terminal in Louisiana and the two at Corpus Christi. Each train is capable of liquefying about 700 MMcfd of gas.

According to the sale and purchase agreements, the first commercial delivery from the new unit is expected to occur in May 2020, Chieniere said.

Source:
pgjonline

Five-Year Extension Requested to Build Lake Charles LNG Export Terminal

A five-year extension to build the proposed Lake Charles LNG export terminal was submitted to federal regulators by Energy Transfer. As per the federal permit that was received in December 2015, the 240-acre liquefied natural gas export terminal project was supposed be operational by December 2020.

The LNG export terminal project got delayed and never got built due to complex international contract negotiations for the delay, Energy Transfer said in a letter. The company asked the Federal Energy Regulatory Commission to extend that deadline until December 2025.

"The project sponsors are eager to continue to move forward with the project and receipt of the requested extension is a necessary step," Energy Transfer Chief Regulatory Officer Michael Langston wrote in the letter.

Energy Transfer is not expected to make a final investment decision on Lake Charles LNG until early 2020, Langston explained in his letter. The proposed export terminal is authorized to produce 16.45 million metric tons of LNG year.

Source:
chron

Keystone XL Pipeline’s Injunction Overturned by U.S. Court

An injunction barring some pre-construction activities to long-delayed TC Energy Corp's Keystone XL pipeline was dissolved by an appellate court on Monday. The company has been working for more than a decade to build the controversy-ridden 830,000 barrel per day pipeline.

The pipeline would run from an oil hub at Hardisty, Alberta, to Steele City, Nebraska, where it would join TC Energy's existing Keystone pipeline system.

Since the company is facing a pending Nebraska Supreme Court decision related to the pipeline's route and a lawsuit by two Native American communities in Montana, they said that it would not make any major capital commitments until it has a clear path to construction, and therefore has not made a final investment decision to proceed with the project.

While TC Energy is expecting a decision from the British Columbia Supreme Court to extend an injunction on its Coastal GasLink pipeline in the third quarter, Canada's National Energy Board said last week that the pipeline to supply the LNG Canada project in northern British Columbia was not subject to federal regulation.

Source:
pgjonline

Proposed Coastal Gaslink Pipeline Not Subject to Federal Regulation

Canada's National Energy Board said on Friday that TC Energy Corp's proposed 416-miles Coastal GasLink natural gas pipeline to supply the LNG Canada project in northern British Columbia is not subject to federal regulation.

According to the board’s decision, the company will not have to submit a new application for approval and cuts the risk of extra regulatory scrutiny delaying construction. The pipeline will run from Dawson Creek in the northeast of the province to the proposed LNG facility near Kitimat on the Pacific coast.

"Coastal GasLink is an integral part of LNG Canada and pipeline development is key for the timing of the project coming online," Wood Mackenzie analyst Dulles Wang said. "That (pipeline development) has always been viewed as one of the biggest risk factors and this decision clears that up."

Source:
pgjonline

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

Cheniere’s Sabine Pass Storage Tanks Shut Down

Recently, two Louisiana Sabine LNG storage tanks leaked on the Sabine Pass export terminal. Consequentially, U.S. Energy and safety regulators, such as the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Energy Regulatory Commission (FERC), denied authorization for Cheniere Energy Inc. to return these tanks back to service.

Discovered on January 22, 2018 by some plant workers was a 1 to 6 foot long crack in one tank leaking into an outer layer. Cheniere’s two tanks were quickly shut down by PHMSA on February 8, 2018 and they were told by agencies that any service returned to a tank before safety requirements were met would be at their own risk.

While Cheniere agreed in April of 2018 that they would begin correcting issues, regulators have reported that the company has “failed to comply" in some instances of testing equipment and providing documentation.

Cheniere claims they have “been responsive and forthcoming throughout this process and will continue to be,” and they “will provide a formal response” to the claims agencies have made about them.

In order for Cheniere to return the tanks to service, a structural re-inspection of all five LNG storage tanks in Sabine, capable of holding 17 bcf, and an installation of specific devices to alert them of leaks is required.

Source: Reuters

$145 Million Deal to Buy Shell Canada Gas Assets by Pieridae Energy

Pieridae Energy, based in Canada will buy gas assets from Royal Dutch Shell for 145 million, Pieridae said on Wednesday. This will secure supply for Pieridae’s proposed Goldboro LNG plant in Nova Scotia, which will be Canada’s first east coast LNG project, producing 10 million tons per year.

“Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry,” said Pieridae Chief Executive Alfred Sorensen.

All of Shell’s midstream and upstream assets in the southern Alberta Foothills area is included in the deal and these assets will produce 29,000 barrels of natural gas, natural gas liquids and condensate. Also Shell said in a statement that Pieridae will retain all site-based Shell employees and some Calgary-based employees who support the Foothills assets.

“We are pleased they (the assets) are going to a buyer with a strong focus on safety, community and environmental stewardship, and one that is well placed to take these assets to the next stage of their development,” Shell Canada President Michael Crothers said.

Source:
reuters

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

Louisiana Sabine Pass 6 LNG Export Train to Be Built by Cheniere

The biggest supplier of U.S. LNG is planning to build a sixth liquefaction train at its Sabine Pass LNG export terminal in Louisiana, Cheniere Energy said on Monday.

The company has a $2.5 billion contract with Bechtel, the lead contractor building its LNG terminals. It gave Bechtel the notice to proceed with the construction of Sabine 6 and expects the unit to enter service in 2023.

Cheniere’s subsidiary, Cheniere Energy Partners LP has entered into five-year, $1.5 billion senior secured credit facilities with 29 banks and financial institutions to fund a portion of Sabine 6 and a third LNG berth at the plant.

Also all remaining necessary regulatory approvals for the project is expected to receive by the end of 2019, the company said.

Source:
pgjonline

Aramco to Buy LNG from Sempra

Saudi Arabian Oil Co., also known as Aramco, under a 20 year agreement, will begin buying 5 million tons of liquid natural gas per year from San Diego based Sempra Energy. As part of the deal, Aramco also will make a 25% equity investment in an LNG export facility under development in Port Arthur, Texas.

"With global demand for LNG expected to grow by around 4% per year ... we see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG," Amin Nasser, the company's CEO said in a news release.

"At Sempra Energy, we are developing one of the largest LNG export infrastructure portfolios in North America, with an eye towards connecting millions of consumers to cleaner, more reliable energy sources," said Jeff Martin, CEO of Sempra, in a statement. He added that partnering with Aramco will help develop the facility and enable the export of American natural gas to global markets.

Sempra Energy recently received authorization for the Port Arthur LNG facility from Federal Energy Regulatory Commission to construct and operate the facility and related pipelines.

Source:
mysanantonio

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

FERC Approves Commissioning of $13 Billion Freeport LNG’s Export Plant

Federal regulators on Thursday approved a commissioning step for the Freeport LNG’s $13 billion Freeport liquefied natural gas (LNG) export plant in Texas. FERC approved Freeport’s request to introduce hazardous fluids to commission the liquefaction flare pilot system, a step in the process LNG terminals go through as they prepare for service.

According to U.S. engineering firm McDermott International Inc., which is building the plant, expects the first train at Freeport to enter commercial service in the third quarter, Train 2 to enter service in the first quarter of 2020 and Train 3 in the second quarter of 2020. Williams Cos Inc., is building a pipe to connect the plant to the interstate gas system.

Each train at Freeport will have the capacity to produce about 5 million tons per annum (MTPA) of LNG or around 0.7 billion cubic feet per day (bcfd) of natural gas. In addition, Freeport is developing a fourth 5-MTPA liquefaction train at the facility and could make a final investment decision on the train in the second quarter of 2019 with the plant entering service in 2023 or 2024.

Source:
reuters

$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

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

Train 5 of Sabine Pass Liquefaction Project Achieves Substantial Completion

In a statement released by Cheniere Energy Partners, L.P, the company has achieved Substantial Completion of Train 5 of the Sabine Pass liquefaction project in Cameron Parish, Louisiana.

According to the statement, commissioning has been completed and Cheniere Partners’ EPC partner Bechtel Oil, Gas and Chemicals Inc. has turned over care, custody, and control of Train 5 to Cheniere Partners.

Under sale and purchase agreements (SPAs) with Centrica plc and Total Gas & Power North America, Inc., the date of first commercial delivery is expected to occur in August 2019, upon which the term of each of these SPAs commences.

Cheniere Partners and Bechtel have now declared Substantial Completion on five liquefaction trains at the SPL Project ahead of each train’s guaranteed completion date and within project budgets.

Financial results of LNG sales from Train 5 going forward will be reflected in the statement of operations of Cheniere Partners and its applicable affiliates with the achievement of Substantial Completion.

Source:
newsok

$10 Billion Alaska Stand Alone Pipeline Gains Key Federal Approval

Alaska Gasline Development Corp (AGDC) received the last major federal permit needed on March 4th for its proposed $10 billion Alaska Stand Alone Pipeline (ASAP) to supply natural gas to in-state consumers, the company said on Wednesday.

The ASAP is a 733-mile project designed to deliver gas from Alaska’s North Slope to customers in Fairbanks, Anchorage and other parts of the state.

ASAP is part of state-owned AGDC’s proposed $43.4 billion Alaska LNG project. It is designed to liquefy 3.5 billion cubic feet per day of gas for sale to customers in the Asia-Pacific region from a facility to be built in Nikiski on the Kenai Peninsula south of Anchorage, which includes an 807-mile pipeline.

“We see Alaska Stand Alone as a backup plan. We are mostly focused on Alaska LNG,” said AGDC spokesman Tim Fitzpatrick.

The company has planned to make a final investment decision to build the LNG project in early 2020 that would enable it to enter service in 2025, said AGDC in the past.

Source:
reuters

$18 Billion LNG Deal Expected Between Cheniere Energy and China's Sinopec

The Wall Street Journal and S&P Global Platts reported that the Cheniere Energy is close to signing an $18 billion long-term LNG supply deal with China's state-run oil company Sinopec.

The Journal reported that the deal could be announced end of March as part of a broader US-China trade deal at a summit between U.S. President Donald Trump and Chinese President Xi Jinping.

Recently FERC gave Cheniere the green light to put the first production unit at its Corpus Christi LNG unit into service and begin exports.

Cheniere signed two LNG supply deals with PetroChina International Co. a year ago and weeks after Trump’s trade mission to China in November 2017.

The Wall Street Journal also reported that the deal with Sinopec could also include financing from state-owned Chinese banks for Cheniere to further expand its export capacity.

Source:
chron