DOE OKs FTA Exports for Louisiana LNG Project
The U.S. Department of Energy (DOE) has granted long-term, multi-contract authorization to Venture Global LNG LLC to export liquefied natural gas (LNG) to free trade agreement countries (FTA) from a proposed terminal in Cameron Parish, LA.
According to project backer Venture Global Partners LLC, the project seeks “to improve people’s lives in developing nations by structuring commercially sustainable projects that increase energy availability, lower power costs and reduce carbon emissions and other pollutants.”
DOE’s order authorized Venture Global to export up to the equivalent of 243.6 Bcf per year (0.67 Bcf/d) for 25 years beginning on the date of first export or by Sept. 27, 2021, whichever is earlier. “This LNG may be exported to Australia, Bahrain, Canada, Chile, Colombia, Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, Republic of Korea and Singapore, and to any country with which the United States subsequently enters into an FTA…” DOE said.
Venture Global told DOE that it plans to convert power generating facilities that run on heavy fuel oil and diesel to natural gas use, as well as develop new natural gas-fired generation in developing nations. LNG exports from the terminal to be sited at the entrance of the Calcasieu Ship Channel in southwestern Louisiana would fuel the power generation.
Venture Global said it plans to partner or contract with global infrastructure companies that can provide equity and project finance debt, as well as international energy and logistics companies with expertise appropriate to the project.
Natural gas would be sourced domestically over the U.S. pipeline grid from conventional and unconventional plays. The liquefaction terminal would be near pipelines operated by Tennessee Gas Pipeline Co., ANR Pipeline Co., Bridgeline Holdings LP, Columbia Gulf Transmission Co. and Natural Gas Pipeline Company of America.
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