FERC has approved the pre-filing request of CE FLNG LLC, an affiliate of Cambridge Energy Holding LLC, for a liquefaction facility to export liquefied natural gas (LNG) from a proposed floating production facility offshore Louisiana south of Plaquemines Parish.
CE FLNG “plans to construct and operate two floating natural gas liquefaction, storage and offloading units on the Mississippi River in Plaquemines Parish…These units would be capable of producing up to 8 million metric tons per year of liquefied natural gas,” and storing 250,000 cubic meters of LNG, according to the letter order approving the company’s pre-filing request [PF13-11].
Additionally, CE FLNG plans to construct 45-72 miles of 42-inch diameter pipeline and associated facilities to connect the floating units to onshore transmission facilities.
In November, the Department of Energy (DOE) approved CE FLNG’s application to export domestic gas to foreign countries with which the United States has or will have a free trade agreement (FTA), applications that are almost always automatically approved. The company got the go-ahead to export up to 8 million metric tons per year (about 389.6 Bcf) of domestically produced LNG over a thirty-year period (see Daily GPI, Nov.30, 2012).
However, CE FLNG’s application to export LNG to non-FTA nations remains pending at DOE, as do many others because of the tougher review process for these types of applications. So far, Cheniere Energy holds the only non-FTA authorization for its Sabine Pass LNG project (see Daily GPI, April 18, 2012).
The project, like the majority of similar proposals submitted for approval, is unlikely to see its in-service date for at least another four to five years, according to Cambridge Energy. The “LNG export initiative can also be interpreted as the reflection of the company’s view that natural gas prices in the U.S. will remain low for a long time,” CEO Sherman Bryant said.
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