DOE fields application for export authority from Driftwood LNG

The Office of Fossil Energy of the U.S. Department of Energy will give notice in the Jan. 12 Federal Register of a September 2016 application by Driftwood LNG LLC for long-term, multi-contract authorization to export domestically produced liquefied natural gas (LNG) in a volume equivalent to 1,496.5 billion cubic feet per year (Bcf/yr) of natural gas (4.1 Bcf per day).

Driftwood LNG would export the LNG by vessel from the proposed Driftwood LNG Facility, to be located in Calcasieu Parish, Louisiana, approximately five miles south of the town of Carlyss, Louisiana.

Driftwood LNG requests authorization to export LNG to any nation with which the U.S. does not have a free trade agreement (FTA) that requires national treatment for trade in natural gas and with which trade is not prohibited by U.S. law or policy (non-FTA countries) for a 20- year term to commence on the earlier of the date of first export or seven years from the date the requested authorization is issued. Driftwood 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.

Protests, motions to intervene, notices of intervention, and written comments are due within 60 days of Jan. 12.

Driftwood LNG is an indirect, wholly-owned subsidiary of Tellurian Investments Inc. Tellurian Investments, a developer of LNG projects along the U.S. Gulf Coast, was founded by two individuals, Charif Souki and Martin J. Houston. Souki is the former Chairman, Chief Executive Officer and President of Cheniere Energy. Houston is the former Chief Operating Officer of BG Group plc.

The facility will consist of five LNG plants. Each plant will be comprised of one gas pre-treatment unit and four liquefaction units. Each liquefaction unit will consist of a refrigeration compressor driven by aeroderivative gas turbines. The liquefaction technology will be Chart Industries‘ proprietary Integrated Pre-cooled Single Mixed Refrigerant process.

LNG will be stored onsite in three LNG storage tanks. The marine loading facility will be located along the Calcasieu River and will consist of three berths for LNG ships.

Driftwood LNG Pipeline LLC (DWPL), an affiliate of Driftwood LNG, intends to develop a new open access interstate pipeline to connect the LNG facility with multiple, existing interstate pipeline systems. The pipeline will be approximately 96 miles long and will connect with up to 15 interstate pipelines or storage facilities. Nearby interstate pipelines that are viable options for connecting to DWPL’s proposed pipeline include Kinder Morgan Louisiana Pipeline, Creole Trails, Cameron Interstate Pipeline, Pine Prairie Energy Center, Egan Gas Storage, Florida Gas Transmission, Tennessee Gas Pipeline, Trunkline Gas, Texas Eastern Transmission, Texas Gas, Transcontinental Gas Pipeline, ANR Pipeline and Columbia Gulf Transmission.

The application to DOE noted: “The availability of a reliable supply of LNG to customers outside of the United States who are currently burning coal, diesel or fuel oil for power generation will encourage conversion to natural gas power generation supplied by LNG. Driftwood LNG’s project is ideally suited for power generation customers because the output of one liquefaction unit at the Facility is approximately equal to the quantity of LNG needed to supply a 1,080 megawatt (‘MW’) generator. Driftwood LNG’s production capacity would be capable of serving up to 21,600 MW of modern combined cycle gas-fired power generation.”

A project contact is: Pat Outtrim, Driftwood LNG LLC, 1201 Louisiana Street, Suite 3100, Houston, TX 77002, Phone: 832-962-4000, pat.outtrim@driftwoodlng.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.