DOE grants export authority for Floridian LNG export project

The U.S. Department of Energy on Nov. 25 approved a Feb. 24 application from Floridian Natural Gas Storage Co. LLC for long-term, multi-contract authorization to export liquefied natural gas (LNG) produced at Floridian’s Facility and transported in approved International Standards Organization (ISO) containers.

This would be in a volume equivalent to approximately 14.6 billion cubic feet per year (Bcf/yr) of natural gas (0.04 Bcf per day (Bcf/d)), less the portion of that volume that may be under firm contract directly or indirectly to Carib Energy (USA) LLC.

According to Floridian, the volume of the requested authorization is the proposed Floridian Facility’s maximum annual send-out capacity of natural gas in its liquefied state via the facility’s truck loading station. Floridian seeks to export this LNG from a proposed liquefaction and storage facility to be constructed and operated in Martin County, Florida, to: any nation that currently has, or in the future may enter into, a free trade agreement (FTA) requiring national treatment for trade in natural gas and with which trade is not prohibited by U.S. law or policy (FTA countries); and nations with which the United States has not entered into an FTA requiring national treatment for trade in natural gas, and with which trade is not prohibited by U.S. law or policy (non-FTA countries).

Because DOE’s Office of Fossil Energy had already addressed the portion of the application seeking authorization to export LNG to FTA countries, the Nov. 25 order addresses only the portion of the application that concerns exports to non-FTA countries.

Floridian or its customers will take delivery of the LNG in ISO containers, which the customers will transport from the facility via truck to ports which will be the points of export. Upon arrival by truck at the point of export, the ISO containers will be loaded onto ocean-going marine vessels for transport to the destination countries. Floridian anticipates the points of export will include the Port of Palm Beach, Port Everglades, Port of Miami, Port Canaveral, Port of Tampa, Port Manatee, and the Port of Jacksonville, Florida. Floridian requests this authorization for a term of 20 years, to commence on the earlier of the date of first export or five years from the date of a final order granting the requested authorization.

In support of its request, Floridian noted that in September 2014, DOE/FE issued a final LNG export order authorizing Carib to export LNG from the same Floridian Facility via the facility’s truck-loading station to non-FTA countries in Central America, South America, or the Caribbean in the same volume proposed for export in the current proceeding (equivalent to 14.6 Bcf/yr of natural gas).

Floridian stated that, to its knowledge, Carib has not yet contracted with either Floridian or any Floridian customer holding capacity in the proposed facility for delivery of any volumes of LNG on either a firm or interruptible basis. Nonetheless, by excluding LNG volumes from the Floridian Facility that may come under firm contract to Carib, Floridian states that its requested authorization in the current proceeding would be consistent with DOE/FE’s policy—as applied to LNG deliveries via truck loading—not to authorize exports that exceed the liquefaction capacity at an LNG facility that will be used for export operations.

Floridian is controlled by Tesla Resources LLC, which own 98% of Floridian, with the remaining ownership of Floridian held by individual private investors.

Floridian stated that the proposed facility will be connected to the domestic natural gas supply market through two existing interstate pipeline systems to which the facility will be connected (and potentially through a third interstate pipeline currently proposed to be constructed in Martin County).

The members of the Federal Energy Regulatory Commission on July 16 approved a September 2013 application from Floridian Natural Gas Storage to amend its certificate of public convenience and necessity to construct and operate this project.

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.