DOE takes comment on Louisiana LNG export project

The U.S. Department of Energy (DOE) said in a notice to be published in the Dec. 19 Federal Register that filed on July 24 by SCT&E LNG LLC was a request for long-term, multi-contract authorization to export domestically produced liquefied natural gas (LNG).

This export would be to any country with which the United States does not have a free trade agreement requiring national treatment for trade in natural gas and with which trade is not prohibited by U.S. law or policy (non-FTA countries).

SCT&E LNG seeks authorization to export the LNG in a volume up to 12 million metric tons per annum, which the company states is equivalent to approximately 1.6 billion cubic feet (Bcf) per day of natural gas (or 584 Bcf per year). SCT&E LNG seeks authorization to export the LNG by vessel from its proposed LNG terminal, which it intends to construct, own, and operate on Monkey Island in the Calcasieu Ship Channel in Cameron Parish, Louisiana.

SCT&E LNG requests this authorization for a 30-year term to commence on the earlier of the date of first export or 10 years from the date the requested authorization is granted. SCT&E LNG seeks to export this LNG on its own behalf and as agent for other entities who hold title to the LNG at the time of export. DOE will take 60 days of public comment on this application.

The project company is a wholly owned subsidiary of Southern California Telephone Co., a Delaware corporation doing business as Southern California Telephone & Energy (SCT&E).

The project facilities are anticipated to include six LNG trains, LNG storage tank(s) and vessel loading facilities. Each of the LNG trains willbe capable of producing up to 2 million tons per annum (mtpa) of LNG, for a total capacity of 12 mtpa of LNG. Currently, the proposed project facilities would permit natural gas to be received by pipeline at the SCT&E LNG Terminal, liquefied, and loaded from the storage tanks onto an LNG carrier berthed alongside the SCT&E LNG Terminal. SCT&E LNG will construct, own, and operate the SCT&E LNG Terminal.

The July 24 application noted: “As of this writing, North Energy Central, a subsidiary of the parent company SCT&E, has signed a Memorandum of Understanding with the Corporacion Dominicana de Empresas Electricas Estatales (CDEEE), a government-backed holding company in the Dominican Republic that brings together the government-owned generation, transmission, and distribution companies and associated government programs in the country to develop, build and operate a 400 megawatt or greater Power Plant with LNG Storage Facilities near Manzanillo, in Monte Cristi Province. The power plant will utilize natural gas provided by the SCT&E LNG export facility.”

The SCT&E LNG Terminal will besituated within close proximity to multiple major interstate/intrastate natural gas pipelines, including those owned by Kinder Morgan, ANR Pipeline Co., TransCanada, Natural Gas Pipeline Company of America, Bridgeline Holdings LP, Columbia Gulf Transmission Co., Gulf South Pipeline Company LP and Koch Industries.  

The July 24 application said that as of that point, the DOE has authorized conditionally non-FTA LNG exports totaling 9.27Bcf/d: Sabine Pass Liquefaction LLC (2.2 Bcf/d); Freeport LNG Expansion LP (1.8 Bcf/d); Lake Charles Exports LLC (2.0 Bcf/d); Dominion Cove Point LNG LP (0.77 Bcf/d); Cameron LNG LLC (1.7 Bcf/d); and Jordan Cove LNG (0.8 Bcf/d).

The overall capita linvestment for the six LNG trains and LNG receiving ship terminal will be about $9.25bn.

A project contact is: Greg Michaels, CEO, SCT&E LNG LLC, 27515 Enterprise Circle West, Temecula, CA 92590, Tel: 949.636.5900, greg.m@scteglobal.com.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.