FERC on Wednesday awarded Cheniere Energy affiliates authorization to build a 2.6 Bcf/d liquefied natural gas (LNG) import terminal and associated pipeline facilities in Corpus Christi, TX. It also approved an amendment to Sempra’s Cameron LNG certificate to modify its berths to handle the next generation of larger LNG tankers [CP02-378]. Sempra’s terminal is being built in Cameron Parish, LA.

This marks the third LNG terminal that the Federal Energy Regulatory Commission has approved for Cheniere along the Gulf Coast. In December 2004, FERC granted a certificate to Cheniere for the development and operation of the $750 million, 2.6 Bcf/d Sabine Pass LNG terminal in Cameron Parish (see Daily GPI, Dec. 16, 2004). Prior to that, the agency approved the proposed Freeport LNG terminal in Brazoria County, TX, which Cheniere will own with ConocoPhillips, Contango Oil & Gas and Dow Chemical (see Daily GPI, June 22, 2004).

As an offshoot of the Sempra Cameron action, the pipeline and storage unit at Sempra Energy announced Wednesday it started an open season to solicit market interest in capacity on its proposed Cameron Interstate Pipeline being created for its liquefied natural gas (LNG) and storage facilities in a Louisiana area that contains up to 10 Bcf/d of takeaway interstate capacity. The new pipeline is designed to transport 1.8 Bcf/d.

Nonbinding requests for service should be submitted no later than May 2, Sempra Pipelines & Storage said in announcing the open season. Results will be evaluated and potential shippers contacted by May 18. “Prospective shippers have an opportunity to indicate their interest for capacity and delivery points on the pipeline,” Sempra said.

The 35-mile pipeline has received FERC approval on its design, authorizing deliveries of 1.5 million Dth/d, although the approved design is capable of delivering 1.8 Bcf/d. “The project permit may be modified to accommodate more capacity, depending on the results of the open season,” said a Sempra spokesperson.

Corpus Christi LNG LP, a partnership between Cheniere Energy and BPU LLC (an affiliate of Sherwin Alumina), will build the Corpus Christi LNG import terminal adjacent to the Sherwin Alumina plant on the northern shoreline of Corpus Christi Bay. The partnership owns a 210-acre tract of land and controls 400 additional acres through permanent easements. BPU is contributing the land and certain development costs associated with the project in return for a 33.33% limited partnership interest.

Sherwin Alumina, formerly Reynolds Metals Co., has produced alumina near Corpus Christi for more than 48 years and is a large consumer of natural gas.

The proposed terminal will have the capacity to process 2.6 Bcf/d of regasified LNG and will have three LNG storage tanks, each with a nominal working volume of approximately one million barrels. Cheniere Energy said it expects construction of the facility to begin in the third quarter of this year and be completed in three years [CP04-37]

The order also grants Natural Gas Act Section 7 authorization to Cheniere Corpus Christi Pipeline, which would provide takeaway capacity from the terminal. The pipe system would consist of 23 miles of 48-inch diameter facilities, with eight interconnects to existing intrastate and interstate pipelines: Texas Eastern Transmission, Gulf South Pipeline, Channel Pipeline, Florida Gas Transmission, Kinder Morgan Texas Pipeline, Transcontinental Gas Pipe Line, Natural Gas Pipeline Co. of America and Tennessee Gas Pipeline [CP04-44]. The facilities also would involve the construction of three 30-inch diameter lateral pipelines, totaling 0.8 mile.

FERC approved Sempra’s $700 million Cameron LNG facility in Louisiana in September 2003 (see Daily GPI, Sept. 11, 2003). The project, which is under construction, will include three LNG storage tanks each capable of holding one million barrels of LNG, or about 3.5 Bcf of gas. The project also includes a 35-mile, 36-inch diameter pipeline that will extend from the terminal to an interconnection with Transcontinental in Beauregard Parish, LA. At full operation, the terminal will have a maximum sendout of 1.5 Bcf/d.

George Liparidis, president of the Sempra pipeline/storage unit, said the FERC-authorized pipeline will directly interconnect with the proposed LNG infrastructure under development in Cameron Parish. “The Cameron pipeline will capitalize on the need for transportation options for LNG shippers,” he said.

Liparidis placed at 5 Bcf/d the amount of collective inter- and intrastate pipeline capacity in the vicinity of Transco Compressor Station 45. In addition, the pipeline will connect with Sempra’s 17 Bcf Liberty Gas Storage project and its Port Arthur Pipeline, which could extend to the Columbia Gas mainline, he said, crossing with pipelines that collectively represent another 5 Bcf/d of interconnection capacity.

Potential shippers interested in the open season should contact Sempra’s Laurie Fitzmaurice at (619) 696-2698 or through the Internet (www.cameronpipeline.com).

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