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Sabine Pass Seeks Additional Export Authorization

Cheniere Energy Inc. unit Sabine Pass Liquefaction (SPL) has filed with the U.S. Department of Energy (DOE) for authorization to export up to 314 Bcf of liquefied natural gas (LNG) per year for a term of 20 years from the Sabine Pass Liquefaction Project in Louisiana to countries that have free trade agreements (FTA) with the United States and to non-FTA countries.

"SPL is requesting this authorization both on its own behalf and as agent for other parties who will hold title to the LNG at the time of export," it said in the recently released filing at DOE.

"Trains 1 through 4 of the liquefaction project are currently under construction. SPL, Sabine Pass LNG and Sabine Pass Liquefaction Expansion LLC will be filing in the near term an application with FERC for authorization...to site, construct and operate two additional LNG production trains (Train 5 and Train 6), which constitute the Liquefaction Expansion Project."

Currently, SPL holds DOE authorization to export up to 803 Bcf per year from the liquefaction project to FTA and non-FTA countries. It also has long-term authorization to export an additional 101 Bcf per year and 88.3 Bcf per year to FTA nations, subject to terms in LNG sale and purchase agreements (SPA) with Total Gas & Power North America Inc. (TGPNA) [see Daily GPIDec. 18, 2012] and Centrica plc [see Daily GPIMarch 26]. "SPL's instant request encompasses the volume of LNG that can be produced from Trains 5 and 6 that is not already committed for export under the TGPNA and Centrica SPAs," the filing said.

SPL cited previous orders by DOE that found non-FTA exports to be in the public interest in arguing its case. "That same rationale is equally applicable here, and SPL incorporates herein by reference the substantial record that it developed demonstrating the public interest benefits of exports in FE Docket No. 10-111-LNG," the filing said.

"...[B]ecause SPL intents to sell natural gas from Train 5 and Train 6 of the liquefaction expansion project under contractual arrangements that will be priced competitively with domestic natural gas, it will satisfy the public interest standard as set forth in DOE's Policy Guidelines." 

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