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

Jewell names Maryland energy administrator BOEM’s new director

12/18/2014 US Interior Sec. Sally Jewell appointed Abigail Ross Hopper, who currently directs the Maryland Energy Administration, as the new director of the U...

Marathon cuts 2015 budget amid ‘current price environment’

12/18/2014 Marathon Oil Corp. expects to spend $4.3-4.5 billion in its capital, investment, and exploration budget for 2015. That total represents a 20% decli...

Russia’s Turkey pipeline deal possibly may keep door to Europe ajar

12/18/2014 Russia’s memorandum of understanding to build a natural gas pipeline to Turkey after canceling its South Stream project could help keep the door op...

Patel appointed as LyondellBasell’s chief executive officer

12/18/2014 LyondellBasell has chosen Bhavesh V. Patel to serve as its chief executive officer effective Jan. 12, 2015. He succeeds James L. Gallogly, who...

Moody’s: Mid-term elections dim federal fracing regulation prospects

12/18/2014 Results of 2014’s congressional elections have reduced the prospect of the federal government enacting its own hydraulic fracturing regulations, Mo...

Apache awarded Western Australia offshore permit

12/18/2014 A day after reporting its planned divestment of Western Australian and Canadian assets to Woodside Petroleum Ltd., Apache Corp. has been awarded a ...

MEG Energy cuts capital spending for 2015 to $305 million (Can.) from $1.2 billion

12/18/2014

MEG Energy Corp., Calgary, is reducing its 2015 capital spending plans to $305 million (Can.) from the original budget of $1.2 billion.

Thirty-one House Democrats ask Jewell to bar leasing in Arctic Ocean

12/18/2014 US Rep. Jared Huffman (D-Calif.) and 30 other House Democrats urged US Interior Sec. Sally Jewell to reject the second supplemental environmental i...

Obama makes Alaska’s Bristol Bay off-limits for oil, gas activity

12/17/2014 US President Barack Obama placed Bristol Bay off-limits for future oil and gas leasing, extending a temporary withdrawal he imposed in 2010 that wa...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


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