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Draft EIS Issued For Lake Charles Liquefaction Project

FERC staff released a favorable draft environmental impact statement (DEIS) for the proposed Lake Charles Liquefaction Project and associated pipeline that recommends mitigation measures in addition to those proposed by the project sponsors.

The export project is proposed by Trunkline Gas Co. LLC, Lake Charles LNG Co. LLC and Lake Charles LNG Export Co. LLC. It was filed at the Federal Energy Regulatory Commission one year ago (see Daily GPI, March 26, 2014). Comments on the DEIS are due at the Federal Energy Regulatory Commission by June 1 [CP14-122, CP14-120, CP14-119].

Trunkline wants to construct natural gas pipeline and compression facilities and meter stations, modify existing pipeline and other  facilities and abandon one compressor unit in Arkansas, Mississippi and Louisiana. Lake Charles LNG and Lake Charles LNG Export want to to construct liquefaction facilities adjacent to an existing liquefied natural gas (LNG) terminal in Calcasieu Parish, LA, and to construct and operate modifications at the existing LNG terminal. The new liquefaction facilities would have a design

production capacity of 16.45 million metric tons of LNG per year.

"The FERC staff concludes that approval of the proposed project would have some adverse environmental impacts; however, most of these impacts would be reduced to less-than-significant levels with the implementation of Lake Charles LNG's and Trunkline's proposed mitigation and the additional measures recommended in the draft EIS," Commission staff said.

The Trunkline companies are units of Energy Transfer Equity LP and Energy Transfer Partners LP (collectively, Energy Transfer). Energy Transfer has secured all property rights required for the site. The liquefaction project would make the terminal bi-directional, with the ability to receive and regasify LNG, and liquefy domestic gas for export.

Energy Transfer would own and finance the facility, and BG Group plc is to be responsible for the offtake. BG would also select the engineering, procurement and construction contractor, and manage construction. Upon completion, BG would operate the facility under a long-term agreement with Energy Transfer while Trunkline Gas Co. would provide pipeline transportation services to supply gas to the facility.

It was recently announced that Royal Dutch Shell plc has agreed to acquire UK-based BG Group plc, and a cornerstone of the deal was said to be a tie-up of the global LNG capabilities of the companies, including the Lake Charles export project (see Daily GPI, April 8).

Assuming necessary approvals, exports from the Lake Charles project could begin in 2019, according to ClearView Energy Partners LLC.

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