The Federal Energy Regulatory Commission said Wednesday that an environmental assessment has found that Trunkline LNG’s proposed expansion of its facilities in Louisiana “would not constitute a major federal action significantly affecting the quality of the human environment,” with appropriate mitigating measures.

Trunkline is seeking approval to expand its current facilities associated with its Lake Charles LNG terminal in Louisiana in order to expand to a peak sendout capacity of 2.1 Bcf/d by 2006.

In addition to constructing a number of metering stations and related facilities, the company will convert an LNG vessel lay berth to an LNG ship unloading dock with three liquid unloading arms and one vapor return/delivery arm at the import terminal; construct three 200 MMcf/d second stage pumps; construct four 150 MMcf/d submerged combustion vaporizers; and will build a new 23-mile, 30-inch diameter pipeline system that will run parallel to its existing system.

Commenting on the environmental assessment, John Barnett, spokesman for Trunkline’s parent company, Panhandle Energy, said the company’s engineers had not yet had a chance to go over the ruling.

“There is now a 30-day comment period both for us as well as any intervenors to the project,” Barnett said. “There have been no protests for either the pipeline construction or the further expansion of the LNG terminal. We are hopeful that the commission will issue its final order by September.”

Barnett added that the $125 million Phase II project is still expected to be completed and in service by early to mid-2006. He also noted that the construction of Phase I is still proceeding. “We are doing the construction of the fourth tank right now and the project is still on schedule to be in service by the end of 2005,” he said. The Phase I expansion was approved by FERC last year and will bring peak sendout capacity to 1.3 Bcf/d

The additional capacity from Phase II will be fully contracted to BG LNG under an agreement expiring in 2023.

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