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FERC application for Gulf LNG liquefaction project has been filed

LNG Industry,


Gulf LNG Liquefaction Company (GLLC) and Gulf LNG Energy (GLE) have recently collectively filed an application with the Federal Energy Regulatory Commission (FERC) pursuant to Section 3 of the Natural Gas Act, requesting authority to construct and operate new natural gas liquefaction and export facilities at GLE’s existing LNG regasification terminal located in Jackson County, Mississippi, near Pascagoula. Additionally, pursuant to Section 7(c) of the Natural Gas Act and FERC regulations, Gulf LNG Pipeline (GLP) notified the FERC that minor modifications will be made to the existing pipeline facilities that currently interconnect with the terminal under GLP’s blanket authorisation from the FERC. The applicants have requested that the FERC grant authorisation of the requests no later than 17 June 2016.

The project will include the installation of natural gas pre-treatment, liquefaction and export facilities at the terminal with a total peak capacity of up to 11.5 million tpy. The average expected send-out rate for the proposed facility will be approximately 1.5 billion ft3 of LNG per day. These facilities will allow the terminal to liquefy domestic natural gas delivered by pipeline, store the LNG in the terminal’s existing LNG storage tanks and load it into LNG vessels via the terminal’s existing marine jetty. The terminal will retain its current capability of receiving, storing, regasifying and delivering natural gas into the interstate pipeline system as originally constructed, thus making the Gulf LNG Terminal bi-directional.

The project is divided into two phases

Phase one will consist of a single liquefaction train expected to have a base LNG production capacity of approximately 5 million tpy. The LNG produced by this train will be stored in the terminal’s two existing LNG storage tanks, which have a combined capacity of 320 000 m3 – equivalent to 6.6 billion ft3 of natural gas. The stored LNG will then be loaded onto ships berthed at the existing dock facility. Phase two will consist of a second liquefaction train, identical in size to the first train, which will provide a total project base level liquefaction capacity of 10 million tpy, which GLLC expects could be exceeded by more than 10% once the project is in operation.

Anticipated total expenditure will reach approximately US$8 billion

Subject to obtaining sufficient long-term customer commitments, anticipated capital expenditures for the project at full development total approximately US$8 billion. Anticipated capital for a single LNG train in phase one totals approximately US$5 billion and approximately US$3 billion for a second train in phase two. In service for phase one is anticipated in 4Q20 and 4Q21 for phase two.

“The proposed Gulf LNG Liquefaction Project will be a world-class facility within an existing world-class deep water port and, importantly, be located in an energy friendly state and benefit from a supportive community,” said Kinder Morgan East Region Natural Gas Pipeline President, Kimberly S. Watson. “In addition, it will have a number of other distinct advantages, including: the ability to utilise existing infrastructure, minimising typical new LNG construction risks, it will be built and operated by a seasoned LNG operations team, the facility will have abundant and diverse natural gas supply options and easy access to international shipping lanes.”

The project has already received US Department of Energy (DOE) Free Trade Agreement (FTA) export authority and non-FTA authority is pending. On 15 June 2012, GLLC received approval from the DOE to export up to 11.5 million tpy of LNG. In August 2012, GLLC submitted a filing to the DOE seeking approval to export up to the same volume of LNG to non-FTA countries.

Energy infrastructure will benefit economic development

In addition to helping the US balance of trade, the project stands to be one of the largest economic development investments in Mississippi’s history, creating hundreds of jobs during construction, boosting local-regional construction spending and providing significant economic value to Jackson County and the Port of Pascagoula. Moreover, the additional energy infrastructure will benefit local and state economic development.

Read the article online at: https://www.lngindustry.com/liquefaction/22062015/ferc-application-for-gulf-lng-liquefaction-project-has-been-filed/


 

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