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Cheniere Energy Files Permit for Creole Trail LNG Terminal, Pipeline

Cheniere Energy Inc. said last week that its Creole Trail LNG LP subsidiary and Cheniere Creole Trail Pipeline Co. have respectively submitted applications to the Federal Energy Regulatory Commission (FERC) for authorization to site, construct, and operate the Creole Trail liquefied natural gas (LNG) receiving terminal and an associated natural gas pipeline.

Cheniere initiated FERC's National Environmental Policy Act (NEPA) pre-filing process for these projects in January 2005. In late March, FERC granted the company's request to have its fourth proposed LNG terminal, Creole Trail LNG, and the associated pipeline system, reviewed under NEPA.

The Creole Trail LNG receiving terminal will be located at the mouth of the Calcasieu Channel in Cameron Parish, LA. The facility is designed for LNG regasification capacity of 3.3 Bcf/d with two unloading docks capable of handling up to 250,000 cubic meter LNG shipping vessels, and four 160,000 cubic meter tanks capable of holding 13.5 Bcfe of LNG.

The proposed Creole Trail Pipeline will have an initial design capacity of 3.3 Bcf/d. It will originate at the LNG terminal and extend 118 miles north-northeast through Cameron, Calcasieu, Beauregard, Allen, Jefferson Davis and Acadia Parishes, where it will terminate near Rayne. It will be designed with potential interconnections to interstate and intrastate pipelines with more than 12 Bcf/d of transportation capacity.

In March, Creole Trail LNG LP had signaled that it planned to file its application by May 2, with the request that FERC rule on the project by early 2006. The Commission, however, said at that time that it may not be able to meet this "ambitious schedule," even with the benefits of the pre-filing process.

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