FERC Approves LNG Export Project

abarrelfullabarrelfull wrote on 20 Apr 2012 06:09
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The Federal Energy Regulatory Commission (FERC) today approved a proposal by Sabine Pass Liquefaction, LLC and Sabine Pass LNG, L.P. to site, construct and operate facilities to liquefy domestic natural gas for export to markets worldwide. This is the Commission’s first authorization of a project that would export liquefied natural gas (LNG) from production resources within the United States.

Sabine Pass LNG and Sabine Pass Liquefaction propose to construct and operate liquefaction and related facilities that would enable the companies to liquefy and export up to 2.2 billion cubic feet, or 16 million tons per annum (mtpa), of domestically produced natural gas. The project would be sited at Sabine Pass’ existing LNG terminal located in Cameron Parish, Louisiana.

FERC’s approval under Section 3 of the Natural Gas Act comes after the U.S. Department of Energy authorization for the companies’ plans to export the commodity for a 20-year period to all Free Trade Agreement and non-Free Trade Agreement nations (DOE/FE Order No. 2833 issued September 7, 2010, and Order No. 2961 issued May 20, 2011).

The Liquefaction Project would be built in two stages, each consisting of two LNG process trains with a liquefaction capacity of an estimated 4.0 mtpa. Each LNG process train will contain gas treatment facilities, gas turbine-driven refrigerant compressors, cold boxes and heat exchangers for cooling and liquefying natural gas, waste heat recovery systems, fire and gas detection and safety systems, among other facilities. The project will involve the permanent use of an additional 191 acres within the existing Sabine Pass LNG terminal and will use five existing LNG storage tanks at the site. No additional marine facilities are required for the proposed project.

Today’s order finds that the project can be constructed and operated safely and with minimal environmental impacts. It adopts FERC staff’s recommendations in the December 2011 Environmental Assessment of the project and will require the applicants to adhere to the 55 mitigation conditions detailed in the report.

The Commission ordered Sabine Pass LNG and Sabine Pass Liquefaction to complete construction and have the proposed facilities available for service within five years of the date of the order.

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