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DOE OKs Proposed Louisiana Terminal For FTA Exports

SCT&E LNG LLC has been granted authority to export 584 Bcf per year of liquefied domestic natural gas from its proposed terminal to be sited on Monkey Island in the Calcasieu Ship Channel in Cameron Parish, LA, to countries that are party to free trade agreements (FTA) with the United States.

The unit of Southern California Telephone & Energy received the approval from the U.S. Department of Energy on Monday. SCT&E LNG plans to develop its terminal on a 232-acre site less than three miles from the Gulf of Mexico. The site has 3,500 feet of deepwater frontage on the channel and 4,000 feet of frontage on the Calcasieu Pass/Cameron Loop at the northern boundary of the property (see Daily GPI, May 12).

The volume authorized is what was sought by SCT&E LNG and is equivalent to about 12 million metric tonnes per annum, or about 1.6 Bcf/d.

Exports to FTA countries are presumed to be in the public interest, and authorizations for such are routinely granted by DOE. SCT&E LNG also is seeking non-FTA export authorization; its application is pending at the agency.

The company's terminal is to be 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, the order said.

"SCT&E LNG anticipates that the sources of natural gas will include Texas, Louisiana and Mississippi producing regions, including recent shale gas discoveries in the Haynesville, Eagle Ford, Barnett, Floyd-Neal/Conasauga and Marcellus shale plays," the order said.

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