Cheniere Energy Inc. has called on FERC to issue an order by Thursday authorizing the construction and operation of Sabine Pass Liquefaction LLC’s liquefied natural gas (LNG) export facility, saying that to not do so would cause significant financial harm.

As of Tuesday the item was not scheduled for Commission consideration at the Thursday meeting. However, FERC still could add it to the agenda or vote on it notationally, a spokeswoman said.

“It is important that the liquefaction project receive Commission approval by this date [March 15] so that Cheniere Energy may issue a notice to proceed (NTP) under the terms of its lump sum turnkey engineering, procurement and construction agreement (EPC Agreement) with Bechtel Oil, Gas and Chemical by March 31,” wrote Houston-based Cheniere Energy in a letter to FERC Chairman Jon Wellinghoff.

It’s unlikely that the FERC will respond to Cheniere’s March 7 request since comments on the environmental assessment on the liquefaction project were due on Jan. 27, the FERC spokeswoman said.

“Cheniere’s decision to develop the liquefaction project was precipitated by a dramatic rise in domestic natural gas production and market reduction in domestic demand for imported LNG. The liquefaction project has been well received in the market and Cheniere has executed LNG export sale and purchase agreements with BG Group (UK); Gas Natural Fenosa (Spain); GAIL (India); and Korea Gas (South Korea) [see Daily GPI, Jan. 31],” the company said.

The liquefaction project would be capable of processing an average of 2.2 Bcf/d of pipeline-quality natural gas from the Creole Trail Pipeline, which interconnects with the Sabine Pass terminal. It would have the ability to export about16 million metric tons of LNG annually via tankers. Sabine Pass Liquefaction and the Sabine Pass terminal are subsidiaries of Cheniere Energy.

DOE has already approved plans for Sabine Pass Liquefaction to export 2.2 Bcf/d to countries that have a free trade agreement (FTA) with the United States and also to non-FTA countries (see Daily GPI, Nov. 22, 2011).

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