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Sabine Pass Seeks to Add Containerized LNG Capabilities

Sabine Pass Liquefaction LLC plans to add truck-loading facilities to its liquefied natural gas (LNG) export terminal, now under construction in Cameron Parish, LA, to handle containerized LNG for distribution for feedstock, vehicle fuel and other applications.

"The project will enhance the operations of the terminal and liquefaction project...by encouraging optimal utilization of existing facilities and enabling Sabine Pass to serve rapidly growing demand for LNG," Sabine Pass told the Commission in a recent filing [CP16-19]. "LNG has several distinct advantages, including as a fuel for transportation and other industrial and heavy engine applications.

"While Sabine Pass has not yet entered into any commercial agreements for the project, potential customers of the project may include end-users, who may consume the LNG as vehicular fuel, as feedstock, or for other industrial or heavy engine applications, and entities who may engage in sales for resale of the LNG in interstate commerce."

The terminal, a project of Cheniere Energy Inc., is expected to begin initial operation this month, which would lead to the export of its first cargo around the first of the year (see Daily GPINov. 25). Adding containerized LNG capabilities to the terminal would create a domestic outlet for production from the facility.

"While Sabine Pass has entered into LNG sale-and-purchase agreements that account for a substantial amount of the liquefaction project's total production capacity, the proposed project -- which will be located within the footprint of the terminal as previously analyzed and authorized by FERC -- will enable Sabine Pass to serve, among others, a relatively new market segment in which there has been rapid domestic demand growth on account of LNG's distinct advantages as a fuel for transportation and other industrial and heavy engine applications," Sabine Pass told the Commission.

Transport of the LNG containers would be by truck, rail or water, but not interstate pipeline, Sabine told the Commission. Natural Gas Act Section 7 would not apply, therefore. The transportation of hazardous materials, including LNG...is administered by the Pipeline and Hazardous Material Safety Administration at the U.S. Department of Transportation.

The additional project facilities would include conventional cold, insulated piping; cryogenic hoses for filling and vapor return; and two LNG loading stations (skids), each having two bays capable of loading LNG transport carriers or International Standards Organization (ISO) containers.

Sabine asked for expedited approval of the project by July. This would enable coordination of construction of the containerized LNG facilities with the larger project, Sabine Pass said. With approval by July, in-service could occur during July 2017.

ISSN © 2577-9877 | ISSN © 1532-1231

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