The Federal Energy Regulatory Commission has given CMS Trunkline LNG Co. LLC the green light to trim away some of the facilities planned for the expansion of its liquefied natural gas (LNG) import terminal near Lake Charles, LA, a move that is expected to reduce project costs by $11 million and cut cost of service by $3.2 million a year. The cost of the revised project was pegged at $166 million.

The project, which initially was targeted for in-service in January 2005, also received clearance to push back its start-up date to Jan. 1, 2006. Trunkline LNG, now a unit of Southern Union Co. of Wilkes-Barre, PA, sought the delay after BG LNG Services Inc. — the sole subscriber to the expansion capacity — informed Trunkline that development of its long-term supplies destined for the Lake Charles facility would be delayed.

Trunkline LNG said it plans to eliminate proposed unloading facilities and to purchase commercial power from a local distribution company, Entergy Louisiana Inc., rather than install additional on-site generation. It said it still intends to build the other approved facilities, including a new LNG tanker docking facility (now a layberth) to handle tankers with a capacity ranging from 71,500 to 160,000 cubic meters. A new power substation will be built, owned and operated by Entergy to supply electricity to the expansion facilities, Trunkline noted.

The company said the changes would not affect its plans to increase storage capacity by 2.7 Bcf, daily sendout capability to 1.2 Bcf/d, and peaking capacity to 1.3 Bcf/d.

The project would expand what already is the largest North American LNG terminal by increasing total storage capacity to 9 Bcf and almost doubling the facility’s existing daily sendout capacity of 0.63 Bcf/d.

The Lake Charles LNG terminal was among the assets that CMS Energy Corp. put on the auction block in August 2002 to help improve its balance sheet. Southern Union acquired the terminal facilities, as well as pipeline and storage assets, last June (see Daily GPI, June 12).

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