Gulfstream LNG receives FERC approval to commence pre-filing process

This key achievement follows Gulfstream LNG’s closing of its initial ‘Seed Funding’ round and its move to a nearby downstream site on the same side of the Mississippi River as its previously announced location. The upgraded 418-acre site, with over 3 km (over two miles) of deepwater (15+ m, 50+ ft) Mississippi River frontage, is secured under a long-term 50+ year lease agreement with a private landowner. The site is traversed by a 26 in. natural gas pipeline that will supply, as per an executed agreement with the pipeline operator, the full volume of feed gas required for the operation of the Gulfstream LNG facility at its nameplate capacity.

As per analysis of LNG facility maps on the FERC website, Gulfstream LNG stands out as the first greenfield (non-expansion) LNG project in the US onshore permitting process since 2019. This achievement is remarkable, considering the global LNG market’s exponential growth and geopolitical significance. Further, it confirms Gulfstream LNG’s view that it has ‘secured one of the last remaining permittable LNG export project sites on the US Gulf Coast.’

Over the past year, Gulfstream LNG has further reduced project risk by selecting its key technical partners, including Baker Hughes as the liquefaction equipment provider, Honeywell UOP to provide its gas treatment technology, GTT to provide LNG tank technology and containment system, and Kiewit Energy Group Inc. to provide EPC construction support. Each of these global companies have extensive LNG experience with proven and robust proprietary technologies and processes. With the support of these providers plus Greenberg Traurig, LLP, a global law firm, and Waldemar S. Nelson and Company, Inc., a New Orleans-based engineering and permitting consulting firm with 80 years of Mississippi River project development experience, Gulfstream LNG will be able to provide project-specific information and process unit parameters required for the FERC process and FEED engineering on a timely and cost-efficient basis.

Gulfstream LNG facilities will include two ‘trains’ for gas processing, three electric-drive liquefaction ‘trains’ each with an average base LNG production capacity of approximately 1.4 million tpy, one 200 000 m³ LNG storage tank and tank protection system, two marine loading berths (one capable of receiving smaller barges and vessels, and one for servicing larger ocean-going LNG carriers), and an on-site gas-fired power generation plant. Gulfstream LNG is also evaluating various carbon capture, use and storage options to reduce its Scope 1 and Scope 2 carbon dioxide emissions.

Vivek Chandra, CEO and Founder of Gulfstream LNG, said: “We are pleased to have completed this important step in the permitting process and thank FERC for their timely review of our pre-filing application. This follows on the receipt of the Department of Energy (DOE) export permit for Free Trade Area nations, the recent submission of the Preliminary Waterway Suitability Assessment to the U.S. Coast Guard, launch of our website, continued discussions with equity investors, and growth of the core team.”

Dr Chandra also remarked: “Though the Administration’s pause in the review of DoE non-FTA permits does not directly impact Gulfstream LNG because of our stage in the FERC process, we encourage the US government to complete their evaluation as soon as possible. Export permit delays add uncertainty to project development, impact the global energy transition, and encourage the continued usage of coal and other dirty fuels.”

First production, anticipated in less than six years, will coincide with a forecasted shortfall in global LNG supply exacerbated by recent geopolitical events and natural production declines in many legacy facilities. Gulfstream is considering multiple commercial business models, including tolling by offtake customers and by upstream gas producers, as well as FOB sales. In contrast to other facilities on the Gulf Coast, Gulfstream LNG plans to supply domestic, regional, and international LNG markets via river barges, small ships, bunkering vessels, and large tanker exports under long-term contracts.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20052024/gulfstream-lng-receives-ferc-approval-to-commence-pre-filing-process/