Dynegy plans LNG terminal on Louisiana coast


By the OGJ Online Staff

HOUSTON, July 12 � Energy marketer Dynegy Inc. Thursday joined the competition to build a liquefied natural gas receiving and regasification terminal on the US Gulf Coast.

The Houston company said it will construct a facility at Hackberry, La., on the company's existing liquefied petroleum gas terminal site. In the past 6 months, Cheniere Energy Inc., Houston, and Texaco Inc., White Plains, NY, reported plans either to study or locate new terminals in the region.

In April, CMS Energy Corp. said it received final approval from the federal government to boost LNG capacity at its Lake Charles, La., terminal by 40% to 1 bcfd and was evaluating further expansion to 1.3 bcfd.

Dynegy spokesman Steve Stengel said the existing location will allow the company faster "speed to market." The company said because the Hackberry site is already developed the facility could be operational 2-3 years sooner than a greenfield project.

Dynegy expects to begin the first phase of commercial operation by the end of 2003, representing an 18 to 24-month time-to-market savings, with full capacity available by early 2004. The LNG facility will be capable of receiving and processing 750 MMcfd of LNG. It will be expandable to 1.5 bfcd.

The Hackberry site was operated as an LPG terminal by Trident and acquired by Dynegy in 1995. The terminal has access to the Gulf of Mexico and the Atlantic Basin and will have the ability to connect to a number of natural gas pipelines that reach most major natural gas markets in the US. Dynegy will add one LNG tank and vaporization facilities to the Hackberry site.

Stengel said the company is in talks with a "number" of potential gas suppliers, and he said the project is realistic at today's prices. "We wouldn't be doing it, if we didn't think it was economically viable," he said. Gas prices are down to the $3.50/Mcf range from a winter high of $10/Mcf.

Dynegy has completed a feasibility and detailed engineering analysis at Hackberry and is working to obtain necessary permits from state and federal agencies. Stengel said the company also is talking with various shipping interests and other entities concerning tankers.

Chuck Watson, Dynegy chairman and CEO, said the terminal will be an important addition to the company energy delivery network in the US and "will allow us to participate in a growing global LNG trade to meet our customers' energy needs."

In June, Cheniere Energy Inc. said it was acquiring three land lease options to develop liquefied natural gas (LNG) terminals along the Texas Gulf Coast but declined to release details on the locations. Cheniere said each LNG terminal would be capable of initially processing 200 bcf/year and is slated to be operational within 6 years.

In May, Texaco Inc. said it had begun a 6-month study for the development of a liquefied natural gas receiving and regasification terminal in the US Gulf of Mexico. The study will examine and evaluate infrastructure requirements and costs of the proposed terminal, which would be designed to process 1 bcfd initially. The proposed terminal would connect with Texaco's offshore infrastructure, which has excess capacity.

The terminal could be operational in 4-5 years, and then could be expanded up to 2 bcfd. The LNG would be produced from one or more potential projects in the Atlantic Basin in which Texaco holds an equity interest.

In 2000, there were 55 LNG tanker ships unloaded at the CMS Trunkline LNG terminal. The company said it expected the number to be higher this year.

Related Articles

BP Energy Outlook projects energy demand to jump 37% by 2035

02/17/2015 Global demand for energy is expected to rise by 37% from 2013 to 2035, or by an average of 1.4%/year, due in large part to ongoing economic expansi...

Bear Head LNG exempted from 2012 Canadian environmental act

02/16/2015 Liquefied Natural Gas Ltd.’s wholly owned subsidiary Bear Head LNG Corp. received notice from the Canadian Environment Assessment Agency (CEAA) tha...

Watching Government: New York moves ahead on LNG

02/16/2015 New York, a state more often associated with fiercely resisting unconventional natural gas exploration and production, established a program to reg...

BG's 2015 budget 'significantly lower' than 2014

02/16/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is "significantly lower than 2014" due to &q...

Alaska LNG project partners file resource reports with FERC

02/12/2015 A series of draft environmental and socioeconomic reports for the Alaska LNG project have been submitted to the US Federal Energy Regulatory Commis...

Australia Pacific LNG receives first gas at Curtis Island

02/12/2015 The Origin Energy Ltd.-led Australia Pacific LNG (APLNG) has reached a major milestone with first gas arriving at the group’s LNG plant on Curtis I...

InterOil wins arbitration over rights dispute with Oil Search

02/11/2015 The International Chamber of Commerce arbitration panel in London has found in favor of InterOil Corp. in its battle with Oil Search Ltd. over pree...

Study finds FLNG scheme ‘viable’ for Pandora field development

02/11/2015 A recent study has found that Cott Oil & Gas Ltd’s plans to use a floating LNG (FLNG) vessel for development of Pandora gas field in the Gulf o...

OGJ Newsletter

02/09/2015

International news for oil and gas professionals

White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected