INTERNATIONAL COAL NEWS

US LNG plants move forward

TWO of the multiple of North American projects aiming to use cheap and abundant gas from the US a...

Haydn Black

Last week Texas LNG and Annova LNG filed their request with the Federal Energy Regulatory Commission to begin reviewing development of natural gas liquefaction at the port.

In all five companies want to develop LNG export terminals at the port, although Gulf Coast LNG and Next Decade LNG have not yet moved into the FERC phase.

Both Texas LNG and Annova want to start construction on their mid-scale natural gas liquefaction and transfer facility by 2017 at the earliest.

It is a sign of the dramatic increase in US gas production caused by the shale boom, as a little over a decade ago the US was keen to construct LNG import terminals, but now there are now almost 20 LNG plants proposed to FERC, with the largest mooted being ExxonMobil’s Sabine Pass LNG terminal in Louisiana.

There are also some 21 projects mooted for Canada.

Obviously most will never make it off the drawing board.

Texas LNG is the most advanced. It has initiated the US Federal Energy Regulatory Commission pre-filing process for each of its 2Mtpa trains.

Initiating the pre-filing with FERC is a major milestone for LNG projects. It’s an intensive application process to ensure that projects meet all environmental, engineering and safety requirements before an environmental impact statement is developed.

Export permissions also need to be granted by the US government.

Pending FERC’s final approval to construct the project, Texas LNG train one is expected to start production in 2020.

“The submission of our pre-filing request to FERC is a major milestone for the project,” Texas CEO Vivek Chandra said.

“We now join a select group of projects that have entered this phase of project development.

“We are very pleased with the performance of our team, which includes Samsung Engineering, Braemar Engineering, NRG, K&L Gates, Greenberg Traurig, and Royston Rayzor and are confident that we have the skills and resources in place to efficiently work with FERC through this important process.”

Texas LNG and Annova intend to construct its plant on a new 625 acre site with deepwater frontage to the Port of Brownsville shipping channel.

The locations are about 10km from the Gulf of Mexico, and are accessible for LNG tankers by use of the Brownsville channel.

Both locations offer scope for expansion.

Texas LNG’s move comes as Australia’s Liquefied Natural Gas Ltd moves closer to having its EIS approved for the Magnolia LNG export project in Louisiana.

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