SCT&E LNG Inc. recently signed a nonbinding agreement with a large Asian power utility for the sale of 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from its proposed terminal on Monkey Island in Cameron Parish, LA.
The agreement with the unnamed company also allows for it to invest in the terminal project as well.
"SCT&E LNG has pursued this investment-grade offtaker for a significant period of time and has competed against other liquefaction projects globally for the business," said SCT&E LNG CEO Greg Michaels.
The SCT&E LNG export project is scheduled to produce a total of 12 mtpa of LNG with shipments beginning in 2022. The company's business model seeks to export LNG via take-or-pay agreements and is focused on supplying LNG during the "second wave" of LNG demand in 2022 and beyond, the company said. Last year, SCT&E LNG announced the signing of two offtake agreements. Offtake agreements now total 2.7 mtpa. Talks are in progress with other potential offtakers, according to Eric Smith, executive director of business development.
The project received free trade agreement export authorization from the U.S. Department of Energy (DOE) in December 2014 (see Daily GPI, Dec. 16, 2014). The terminal is to be sited near "numerous major interstate and intrastate natural gas pipelines," according to the DOE order. These include facilities owned by Kinder Morgan Inc., Cheniere Energy, Chevron Pipe Line Co., ANR Pipeline Co., TransCanada Corp., Natural Gas Pipeline Co. of America, Bridgeline Holdings LP, Columbia Gulf Transmission Co., Gulf South Pipeline Co LP, and Koch Industries.
Originally established by privately held Southern California Telephone Co. of Temecula, CA, SCT&E LNG, is a Nevada corporation and developer of an LNG export terminal.