The final environmental impact statement for Cheniere Energy Inc.'s Corpus Christi Liquefaction LLC project in Texas and associated pipeline is to be issued Oct. 8, with a deadline of Jan. 6, 2015 for a decision on whether to authorize the project, the Federal Energy Regulatory Commission said. Corpus Christi Liquefaction would construct and operate a liquefied natural gas (LNG) export and import terminal on the north shore of Corpus Christi Bay in Nueces and San Patricio counties. The terminal would be capable of liquefying about 2.1 Bcf/d and vaporizing about 400 MMcf/d of LNG. The project would also include three 160,000 cubic-meter LNG storage tanks; two LNG berthing docks; about 23 miles of 48-inch diameter, bi-directional pipeline capable of transporting 2.25 Bcf/d of gas; and two compressor stations. In December Corpus Christi Liquefaction struck an agreement with PT Pertamina (Persero) under which Pertamina would purchase about 0.8 million tonnes per annum of LNG from the terminal (see Daily GPI, Dec. 6, 2013).
Private equity fund EnCap Flatrock Midstream plans to invest up to $500 million in startup Tall Oak Midstream LLC, based in Oklahoma City, to fund purchases in emerging resource plays across North America, with an initial focus on the Midcontinent. The EnCap Investments LP affiliate is providing $100 million and has pledged up to $400 million more over time. Tall Oak CEO Ryan Lewellyn formerly was a managing director of DCP Midstream Partners LP's Midcontinent business. CFO Carlos Evanspreviously was a Chesapeake Energy Corp. natural gas sales executive. COO Lindel R. Larison also most recently was a Chesapeake executive, where he served as the manager of construction and engineering.
Hawaiian Electric and the U.S. Navy are in talks for plans to build what would be the first liquefied natural gas (LNG) import terminal in the state at Pearl Harbor, the Honolulu Star-Advertiser reported. The utility has been looking at an LNG option since last year at the behest of Gov. Neil Abercrombie. A near-shore floating terminal is being contemplated. Hawaii currently does not use any natural gas for power generation purposes. Meanwhile, Hawaii Gas, also known as The Gas Co. LLC, is planning to receive LNG deliveries originating from the mainland (see Daily GPI, Jan. 18, 2013). LNG imports could cut residents' and businesses' oil-based energy bills in Hawaii substantially during the next 20 years, according to a University of Hawaii study (see Daily GPI, Jan. 9, 2013).
The California Public Utilities Commission (CPUC) on Thursday approved a 25-year purchased power tolling agreement for Sempra Energy's San Diego Gas and Electric Co. (SDG&E) with the 305 MW natural gas-fired Pio Pico peaking generation plant near the U.S.-Mexico border south of San Diego. A 20-year tolling deal was rejected by the CPUC last year. The CPUC approval covers a revised agreement subject to a cost cap. It requires Pio Pico, which is located adjacent to Calpine Corp.'s 600 MW gas-fired Otay Mesa power plant (see Daily GPI, Aug. 24, 2011) be operational by Sept. 15 2015, and resource adequacy deliveries begin in 2016 for SDG&E. The combination utility will seek CPUC approval for its resource adequacy contract. Future local capacity additions have been estimated at up to 298 MW in 2018, but opponents of the contract, including the local Sierra Club chapter, argued that the added volumes could be provided through additional demand response and energy storage programs. The CPUC did not agree.