Louisiana Governor Bobby Jindal and William Wicker, CEO of Venture Global LNG LLC, announced Dec. 11 that the company will invest $4.25bn to build a new liquefaction processing complex and liquefied natural gas (LNG) export terminal.
The facility will be constructed on the Calcasieu Ship Channel at Calcasieu Pass. The Venture Global LNG project will create 100 new direct jobs, with salaries averaging $70,000 per year, plus benefits.
Jindal said: “Venture Global’s investment in Louisiana is the latest in a long list of projects here in Southwest Louisiana that showcase our state’s energy infrastructure and our outstanding skilled workforce. Cameron Parish supports energy investment because it offers great access to both natural gas supplies and deepwater access for shipping LNG to customers around the world from right here in Louisiana.”
Construction is expected to begin at the 203-acre Venture Global site in the third quarter of 2016. The liquefaction facilities will be placed into operation in late 2019.
“The Venture Global export facility in Cameron Parish, Louisiana, will meet a global market demand for affordable, clean, American-produced liquefied natural gas,” Wicker said. “The Calcasieu Pass project is expected to be a low-cost producer in the region.”
With a planned export capacity of 10 million metric tons when fully developed, the facility will accommodate oceangoing vessels with a carrying capacity of up to 185,000 cubic meters of liquefied natural gas. Venture Global expects to source its feed gas for the Calcasieu Pass complex from one of the most liquid and robust natural gas trading areas in North America, including several major interstate and intrastate natural gas pipelines located nearby.
“The Venture Global LNG export facility puts Cameron Parish at the forefront of liquefied natural gas trade,” said Stephen Broussard, West Cameron Port District director. “Due to the geographic location, and the depth of the Calcasieu Ship Channel, this project has a significant opportunity to bring vast economic prosperity to the area.”
The Calcasieu Pass project will be regulated principally by the Federal Energy Regulatory Commission. VG Calcasieu Pass submitted an initial pre-filing request with FERC on Oct. 7, 2014. On Oct. 10, 2014 the commission accepted VG Calcasieu Pass’s pre-filing request, thus beginning the pre-filing review process required by the National Environmental Policy Act.
600-MW power plant is part of this project
Said a Nov. 10 resource report filed with FERC by Venture Global: “Venture Global Calcasieu Pass’s proposed development is composed of multiple LNG facility components at the approximately 203.6-acre greenfield site (Terminal Site or Site), together with two large-diameter gas pipelines and appurtenant aboveground facilities (collectively, ‘Pipeline System’) to bring feed gas to the Terminal from interconnection points with existing interstate and intrastate pipelines in Cameron Parish. The main liquefaction components, located at the Terminal Site, will be 10 integrated pre-cooled single mixed refrigerant (SMR) blocks, each with a nominal capacity of 1.0 million tonnes per annum (mtpa) of LNG (10.0 mtpa in aggregate) for export, which equates to a total liquefaction capacity of approximately 487.2 billion cubic feet per year (Bcf/yr) of natural gas. These blocks and their support facilities, including integrated gas pretreatment units, are collectively referred to as the ‘Liquefaction Plant’.
“In addition to the Liquefaction Plant described above, Venture Global Calcasieu Pass proposes to construct various other facilities at the Terminal Site to support the liquefaction and export operation, including two 200,000 cubic meter (m3) aboveground LNG storage tanks, two LNG berthing docks within a common LNG berthing area, and an electric generation facility (or ‘power island’) to provide approximately 600 megawatts (MW) of power for the site facilities. The Liquefaction Plant, Pipeline System, LNG storage tanks, LNG berthing facilities, electric generation facility, and other appurtenant structures, are collectively referred to as the ‘Calcasieu Pass Project’ or ‘Project’.”
The power plant would include natural gas-fired combined cycle gas turbine (CCGT) systems, featuring air-cooled steam condensers and electric substation. “Electrical power will be generated on the Terminal Site by the CCGT power island sized to provide a reliable supply of up to 600 MW net of electricity,” said the resource report. “The main power load will be the 20 mixed refrigerant compressor drivers (one driver for each of the two liquefaction units on each of the 10 liquefaction blocks). Other plant loads will include LNG pumps, boil-off and boost compressors, and the multiple fan motors that will be used for air cooling during the liquefaction process. The power island will supply its own auxiliary electric loads, including fans in the air cooled steam condenser, and will have a generator for black start capability.”
Venture Global Calcasieu Pass anticipates that FERC authorization to site, construct, and operate the proposed facilities will be issued by September 2016. Construction is scheduled to commence in October 2016 and last for 38 months, with a full facility in-service target date of December 2019 (with partial operations commencing before the full in-service date using a temporary floating LNG storage vessel).