SCT&E LNG receives approval from the Department of Energy (DOE) to export 12 million tons per annum (mtpa) of Liquefied Natural

abarrelfullabarrelfull wrote on 18 Dec 2014 13:42

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SCT&E LNG announced today that it has been granted authorization from the Department of Energy (DOE) to export liquefied natural gas (LNG) to countries with whom the United States has a Free Trade Agreement (FTA) for a period of 30 years. The DOE conducted an extensive, careful review of the application to export LNG from the future SCT&E LNG Export Terminal and determined that exports from the SCT&E LNG Terminal are not inconsistent with the public interest. From its proposed 246 acre LNG project site on Monkey Island in Cameron Parish, Louisiana, SCT&E LNG plans to liquefy approximately 1.6 billion cubic feet of natural gas per day to produce approximately 12 million metric tons per annum (mtpa) of domestically produced LNG.

The DOE approval for SCT&E LNG’s multi-contract authorization is an important regulatory milestone in the development of a project that will bestow much needed economic growth in Southwestern Louisiana and, more particularly, the community of Cameron Parish. The project is expected to bring millions of dollars in tax revenues to the local, state, and federal government. It will also support over 23,000 jobs nationwide and contribute to the energy security of key U.S. trading partners. The $9.2 billion SCT&E LNG project will create more than 2,000 direct construction jobs and more than 200 high paying permanent local jobs. SCT&E LNG CEO, Greg Michaels, reports, “We are extremely pleased with the DOE’s approval at this time.” Michaels
goes on to say, “Those that are concerned about climate change should also be extremely pleased with this approval. This project will be a substantial component to the international transition from the burning of traditional dirty fuels to clean burning natural gas.”

At the next stage of the project, SCT&E LNG seeks to obtain approval from the Federal Energy Regulatory Commission (FERC) for siting, construction, and operation of its LNG facilities. During this FERC process, SCT&E LNG will also need to achieve National Environmental Policy Act (NEPA) compliance. A final regulatory step involves the non-additive approval from the DOE for export authorization of 12 mtpa to non-Free Trade countries such as China, India, and a number of European countries. During the FERC process, a number of other agency approvals are necessary before the project can commence construction.

SCT&E LNG is currently in the process of developing a $40 million Private Offering for investment into the company. The Offering is for the early stage development of the project, including the FERC process. After the $40 million Private Offering is complete, the company has plans for an initial public offering (IPO).

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