DOE seeks comment on Flint Hills plan to export LNG from Texas facility

The U.S. Department of Energy will give notice in the Feb. 16 Federal Register of its receipt of a November 2015 application from Flint Hills Resources LP for long-term, multi-contract authorization to export liquefied natural gas (LNG) primarily by containers transported on ocean-going carriers to any country with which the U.S. does not have 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 (non-FTA countries).

Flint Hills seeks authorization to export the LNG in a volume equivalent to approximately 3.62 billion cubic feet of natural gas per year (Bcf/yr) (0.01 Bcf per day), which it states is approximately 120,000 gallons of LNG per day. Flint Hills seeks to purchase the LNG for export from a LNG liquefaction facility owned by Stabilis LNG Eagle Ford LLC located in George West, Texas.

The Stabilis Facility has the capacity to produce 120,000 gallons of LNG per day and to store approximately 270,000 gallons of LNG. Flint Hills states that the Stabilis Facility is currently operational and can accommodate both ISO container loadings and tanker truck loadings. Flint Hill therefore asserts that no additional plant infrastructure will be required as a result of the proposed exports.

Flint Hills requests the authorization for a 20-year term to commence on the earlier of the date of first commercial export or a date three months from the issuance of a final order granting the requested authorization. Flint Hills 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. Stabilis LNG is owned in part (49%) by a Flint Hills affiliate, FHR LNG LLC.

Protests, motions to intervene or notices of intervention, as applicable, requests for additional procedures, and written comments are to be filed within 60 days after this notice is published.

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.