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Proposed Louisiana LNG Terminal Gets FTA Export OK

G2 LNG LLC was approved to export up to 672 Bcf/year of liquefied U.S. natural gas to free trade agreement (FTA) countries from its proposed terminal to be sited in Cameron Parish, LA, the U.S. Department of Energy (DOE) said in an order on Friday.

The terminal would be built on the Calcasieu Ship Channel and would have capacity of 14 million tonnes per annum (mtpa). Facilities are expected to include two LNG trains, LNG storage tank(s) with about 10 days of storage at full capacity, and vessel loading facilities.

"G2 LNG states that each of the LNG trains will be capable of producing up to seven mtpa of LNG," DOE said in its order [15-44-LNG]. The volume authorized for export is equivalent to 1.84 Bcf/d.

The network of pipelines that can deliver natural gas to the liquefaction project site can be supplied from almost the entire United States east of the Rockies, according to the order.

"G2 LNG states that this extensive natural gas pipeline transportation system will provide it with access to vast quantities of both conventional gas and unconventional shale gas produced not only throughout Louisiana and Texas, but from regions far beyond as well," the order said. "G2 LNG asserts that this ensures that the liquefaction project and its future customers will have a vast array of stable and economic supply options."

The company told DOE that as the project proceeds, it expects to strike a variety of supply agreements, both long-term and spot, for its own account and on behalf of its customers.

Last March in separate filings, G2 sought FTA and non-FTA export authorizations [15-44-LNG,15-45-LNG]. Its non-FTA application is pending (see Daily GPIMarch 25).

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