FERC approves Cameron LNG liquefaction, export project

A change was made to this story on June 19.

The Federal Energy Regulatory Commission authorized Cameron LNG LLC’s plan to build and operate facilities to liquefy and export natural gas from its existing LNG import terminal in Hackberry, La.

FERC also approved Cameron Interstate Pipeline LLC’s application to construct and operate pipeline and compression facilities in Cameron, Calcasieu, and Beauregard Parishes to supply the Cameron LNG facility with domestically-produced gas. Sempra Energy Corp. owns the project.

The June 19 actions marked the second time FERC has approved an LNG export facility. It approved the Sabine Pass liquefaction project in April 2012, which is under construction. Sabine Pass’s application to expand the project is pending before the commission, along with 12 other LNG export proposals.

The FERC permit is one of the last major regulatory approvals required to start construction on the $9-$10 billion natural gas liquefaction facility, Sempra Chief Executive Debra L. Reed noted.

The US Department of Energy awarded it conditional approval earlier this year to export LNG to countries that don’t have a free trade agreement with the United States, including Japan and European nations, she said (OGJ Online, Feb. 11, 2014).

Cameron LNG’s plans

FERC said Cameron LNG proposes to liquefy and export up to 14.95 million tonnes/year of gas, with a maximum operating capacity equal to up to 2.33 bcfd. Once placed into service, the terminal will be capable of liquefying domestically produced gas for export, importing LNG and regasifying it for domestic delivery, and importing foreign-sourced LNG for subsequent export.

Although the company would have the capability to liquefy domestic gas for export and regasify imported gas for domestic use, it does not plan to do both at the same time, the federal regulator said.

It said Cameron LNG proposes to construct and operate 3 liquefaction trains, each with a capacity of 4.99 million tonnes/year; an additional 160,000-cu-m LNG storage tank (the fourth at Cameron LNG’s terminal); facilities to store refrigerants and condensate products and an associated truck loading/unloading area; a construction dock; and miscellaneous facilities and other minor modifications to existing facilities.

FERC said Cameron LNG proposes to phase in construction and service of the three LNG trains, with the first placed in service in 2017 and the other two in 2018.

Sempra Energy said it would have an indirect 50.2% ownership interest in Cameron LNG and the related liquefaction project, subject to a final investment decision to proceed by each party, finalization of permits, project financing and other customary conditions. The remaining portion will be owned by affiliates of GDF Suez SA, Mitsubishi Corp. through a related company jointly established with Nippon Yusen Kabushiki Kaisha (NYK), and Mitsui & Co. Ltd. (Mitsui), each with 16.6% stakes.

‘International collaboration’

“The liquefaction project is an international collaboration with our partners from Japan and France to create a world-class facility to deliver reliable LNG supplies for more than 20 years to some of the largest LNG buyers in the world," said E. Scott Chrisman, vice-president of commercial development for Sempra LNG and the Cameron LNG liquefaction project’s leader.

US Sen. Mary L. Landrieu (D-La.), who chairs the Energy and Natural Resources Committee, welcomed the news. “Cameron LNG will create thousands of high-paying jobs in Southwest Louisiana and will position America as an energy superpower,” she said hours before opening a June 19 hearing examining the scope of natural gas’s domestic potential.

“[DOE] should follow FERC’s lead and issue the final approval for the project, and [it] should do so quickly so we can create 3,000 high-paying jobs in Southwest Louisiana,” Landrieu continued.

An American Petroleum Institute official also approved of FERC’s action, but called on Congress to accelerate the process for future applicants. “After years of delay, the Cameron liquefaction project is only the second LNG export facility to receive final FERC approval along with its conditional approval from [DOE],” API Upstream Group Director Erik Milito said on June 19.

“This is great news for the workers of Louisiana and for the US economy, but it shows how slowly the current process is working to unlock the economic opportunities created by the US energy revolution,” he continued.

“Members of both the House and Senate are working to expedite the process, and the sooner we act, the sooner that America can cut its trade debt, create thousands of new jobs, and harness its international power as the world’s top producer of natural gas,” Milito said.

Contact Nick Snow at nicks@pennwell.com

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...
White Papers

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

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
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

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