DOE approves LNG export from Sabine Pass terminal

Sept. 14, 2010
The US Department of Energy last week approved a request from a unit of Cheniere Energy Inc., Houston, to export LNG produced from US gas fields.

Warren R. True
OGJ Chief Technology Editor-LNG/Gas Processing

HOUSTON, Sept. 14 -- The US Department of Energy last week approved a request from a unit of Cheniere Energy Inc., Houston, to export LNG produced from US gas fields. The order approved as much as 16 million tonnes/year of LNG (about 2.2 bcfd) for 30-year supply contracts to begin on or before Sept. 7, 2020, from the Sabine Pass LNG terminal in Cameron Parish, La.

Last month Cheniere Energy subsidiary Sabine Pass Liquefaction LLC applied to the DOE’s Office of Fossil Energy under Section 3 of the Natural Gas Act in the first of a two-phase request. The first phase applied to exports to countries that currently can import LNG and with which the US has or will enter into a free-trade agreement. The second phase will apply to countries not currently covered by a free-trade agreement and to which export of LNG is not prohibited by US law.

Countries listed by Cheniere’s application are Australia, Bahrain, Singapore, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Chile, Morocco, Canada, Mexico, Oman, Peru, and Jordan. Of this list, only Chile, Canada, and Mexico operate LNG regasification terminals. Bahrain and Singapore are in different stages of building regasification capacity. Australia, Oman, and Peru currently export LNG.

In June, Cheniere Partners LP let a contract to Bechtel Oil, Gas & Chemicals for design and construction of liquefaction at the 4-bcfd Sabine Pass LNG terminal (OGJ Online, June 10, 2010). That project encompasses two trains, each capable of production 3.5 million tpy. The company said at the time the Cameron Parish site could accommodate up to four LNG trains.

Contact Warren R. True at [email protected].