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Sempra's Port Arthur LNG Gets FTA Export OK

Port Arthur LNG LLC has been granted authorization to export liquefied domestic natural gas to free trade agreement (FTA) countries from its terminal proposed for Port Arthur, TX.

The U.S. Department of Energy (DOE) authorized FTA exports of about 571 Bcf/year for a 25-year term beginning on the date of first export or seven years from the date of export authorization, whichever is sooner [15-53-LNG].

The related Port Arthur Pipeline would connect the liquefied natural gas (LNG) terminal with multiple interstate and intrastate pipelines, giving it access to major U.S. supply basins, Port Arthur told DOE.

The exports would be on Port Arthur's own behalf and on behalf of others. No contracts have been signed for the project, Port Arthur told DOE, but it "...anticipates that it will enter into one or more long-term agreements with customers of the project."

Port Arthur initiated the prefiling process for the project at FERC in March (see Daily GPI, March 23). In June Federal Energy Regulatory Commission staff said it would prepare an environmental impact statement for the liquefaction and pipeline projects.

Port Arthur LNG is one of three liquefaction projects being developed by Sempra Energy. The other projects are the proposed expansion of Cameron LNG with trains No. 4 and No. 5 and liquefaction facilities at the existing Energia Costa Azul in Baja California, Mexico (see Daily GPI, Feb. 19; Nov. 5, 2014).

The project facilities are expected to include two liquefaction trains for a total export capacity of approximately 10 million tons a year, or 1.4 Bcf/d, three 160,000 cubic-meter LNG storage tanks, marine facilities for vessel berthing and loading, natural gas liquids and refrigerant storage, feed gas pretreatment facilities, truck loading and unloading areas, and combustion turbine generators for self-generation of electricity.

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