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Non-FTA Containerized LNG Exports From Florida Facility Approved

The U.S. Department of Energy (DOE) last week granted authorization for Floridian Natural Gas Storage Co. LLC to export up to 14.6 Bcf per year (0.04 Bcf/d) of containerized liquefied natural gas (LNG) from a facility planned for Martin County, FL.

The authorization covers exports to non-free trade agreement (FTA) countries for 20 years; FTA authorization for the same volume was granted previously. The DOE order specifies that the export volume would be reduced by any amount under firm contract to Carib Energy (USA) LLC, which also has been authorized to export LNG produced at the facility.

"Floridian or its customers will take delivery of the LNG in ISO [International Standards Organization] containers, which the customers will transport from the facility via truck to ports, which will be the points of export," the order said [15-38-LNG]. "According to Floridian, upon arrival by truck at the point of export, the ISO containers will be loaded onto ocean-going marine vessels for transport to the destination countries.

"Floridian anticipates the points of export will include the Port of Palm Beach, Port Everglades, Port of Miami, Port Canaveral, Port of Tampa, Port Manatee, and the Port of Jacksonville, FL."

DOE previously authorized exports by Carib from the same Floridian facility in the same amount to non-FTA countries in Central America, South America, or the Caribbean (see Daily GPIOct. 25, 2013).

"Floridian states that, to its knowledge, Carib has not yet contracted with either Floridian or any Floridian customer holding capacity in the proposed facility for delivery of any volumes of LNG on either a firm or interruptible basis," the order said. "Nonetheless, by excluding LNG volumes from the Floridian Facility that may come under firm contract to Carib...Floridian states that its requested authorization in the current proceeding would be consistent with DOE...policy -- as applied to LNG deliveries via truck loading -- not to authorize exports that exceed the liquefaction capacity at an LNG facility that will be used for export operations."

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