CMS Trunkline LNG said it intends to nearly double the sendout capacity of its Lake Charles, LA, facility to 1.2 Bcf/d from 630 MMcf/d to accommodate a substantial increase in LNG imports, particularly by BG LNG Services, which signed a 22-year contract in May for all of the existing capacity at the Lake Charles terminal. Under the $150-200 million expansion plan, CMS would add a second unloading dock, a fourth storage tank and additional pumps and vaporizers.

Once the expansion is completed, Lake Charles will maintain its position as the largest operating LNG import terminal in the United States. In addition to the expansion of the terminal’s sendout capacity, CMS said the storage capacity also will be expanded to 9 Bcf from its current capacity of 6.3 Bcf. The company said it will file its expansion plans with the Federal Energy Regulatory Commission (FERC) next month. Construction will begin after approval from the FERC is received. The expanded facility is planned to be in operation in early 2005.

“LNG is a growing component of the United States’ natural gas market, and it will continue to grow in order to help meet the nation’s growing demand for energy,” said Christopher A. Helms, president of the CMS Panhandle Cos.

In May, CMS inked the 22-year contract giving BG Group all of the current uncommitted capacity at the Lake Charles terminal (see NGI, May 21). The contract, which takes effect in January 2002, will give BG Group the right to 5.1 Bcf of uncommitted vaporization and storage capacity. After another one of CMS’s contracts expires in August 2005, BG’s stake will rise to 6.3 Bcf.

The CMS expansion announcement follows news last month that El Paso Corp.’s Southern LNG Inc. is planning to expand its newly reopened Elba Island LNG receiving terminal near Savannah, GA (see NGI, Sept. 17). Southern LNG said in September that it wants to offer an additional 3.3 Bcf of storage capacity with a send-out rate of 360 MMcf/d. The planned in-service date is 2005. The Elba Island facility, which had been inactive since 1982, began receiving shipments at the beginning of this month when it received the diverted tanker from Distrigas of Massachusetts LLC that had been barred from entering Boston Harbor due to security concerns (see NGI, Oct. 8).

Southern LNG said volumes at Elba Island are expected to increase toward a design send-out rate of 440 MMcf/d by 2003. With the $145 million planned expansion by 2005, Southern LNG said that the send-out rate then would increase to approximately 800 MMcf/d with minimal environmental impact.

In 2000, there were 55 LNG cargoes unloaded at the CMS Trunkline LNG terminal, which equates to about 140 Bcf of natural gas. There have been 57 cargoes of LNG unloaded this year at the terminal through Sept. 30, which represents approximately 151 Bcf of gas. The company said it expects to top the 60-shipment mark by the end of the year. CMS said it believes the terminal is well positioned to receive future gas imports from the major LNG producing areas including Europe, Africa, Asia, South America and Australia.

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