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Louisiana LNG's Export Authorization Yanked by DOE for Failure to Follow Through

The U.S. Department of Energy has rescinded its authorization to Louisiana LNG Energy LLC (LLNG) to export domestic liquefied natural gas (LNG) from a proposed project in Plaquemines Parish, LA that apparently lies dormant.

DOE said it rescinded the authorization because LLNG failed to comply with DOE's semi-annual reporting requirements, and because the Houston-based company failed to notify DOE's Office of Fossil Energy (FE) that FERC terminated the pre-filing review process for the proposed LNG facility in December 2016.

"Specifically, DOE/FE notes that LLNG's last semi-annual report...occurred more than 18 months ago, on Nov. 4, 2015 (which itself was late)," according to DOE's order.

The order vacates DOE's August 2014 authorization for LLNG to export up to 103.4 Bcf/year of natural gas over 25 years to countries with which the United States has free trade agreements (FTA). The order also dismisses an LLNG application for authorization to export the same amount of LNG to non-FTA countries.

The Federal Energy Regulatory Commission terminated its pre-filing review of LLNG's proposed LNG facility "due to LLNG's inaction," according to the order, and the company failed to respond within 30 days to DOE's request to show cause why the agency shouldn't rescind its export authorization.

"LLNG has provided no indication that it intends to maintain its FTA authorization or move forward with its non-FTA application," DOE said. "In light of LLNG's continuing lack of engagement with DOE/FE (as well as FERC's termination of LLNG's pre-filing review), DOE/FE must conclude that LLNG is no longer pursuing its proposed LNG export project."

LLNG, which was bought by Parallax Energy in 2015, planned to build a terminal on the east bank of the Mississippi River, down river from the Port of New Orleans.

The terminal was to consist of four 74.38 MMcf/d liquefaction trains with total annual capacity of 100 Bcf. A marine loading terminal and LNG truck loading facilities also were planned.

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