The U.S. Department of Energy (DOE) Office of Fossil Energy has authorized a unit of Cambridge Energy Holding LLC to export domestically sourced liquefied natural gas (LNG) to free trade agreement (FTA) parties from a proposed Louisiana terminal under multiple contracts.
CE FLNG parent, gas marketer Cambridge Energy, has held a two-year blanket authorization to import and export gas and LNG to and from Canada and Mexico and import LNG from international sources. CE FLNG is now authorized to export LNG from its proposed terminal in Plaquemines Parish, LA, up to the equivalent of 391 Bcf per year for 30 years.
CE FLNG is in the process of finalizing the design of gas processing and liquefaction facilities that would receive and liquefy domestic gas at the project, which would consist of two floating liquefaction, storage and offloading units, each capable of producing up to 4 million metric tons per year. Cargoes would be loaded onto tankers while they are berthed alongside the facility.
Gas to be liquefied would be sourced from the interstate pipeline grid at various liquidity points, CE FLNG told DOE. “CE FLNG states that it anticipates that sources of natural gas will include Texas and Louisiana producing regions and the offshore Gulf [of Mexico] producing regions, with CE FLNG’s primary source of natural gas coming from the Gulf of Mexico rather than from shale gas plays,” DOE said in its order.
Export of LNG to countries that are parties to FTAs with the United States are presumed to be in the public interest and are routinely approved. As of late October, DOE had approved 16 such applications according to its most recent tally, which excludes the CE FLNG approval.
The second half of an export impact analysis is expected to be released by DOE before the end of the year and will indicate the agency’s intention with regard to authorizing more exports to non-FTA countries (see Daily GPI, Nov. 29). So far, Cheniere Energy holds the only such authorization, for its Sabine Pass LNG project.
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