Calcasieu Pass Gets LNG Export OK From DOE
The US Department of Energy (DOE) Office of Fossil Energy has issued the authorization for Venture Global's Calcasieu Pass LNG to export domestically produced LNG from its Cameron Parish, Louisiana, export facility to non-free-trade agreement (FTA) countries. Under the terms of the order, Calcasieu Pass is authorized to export up to 620 Bcf per year—or, 1.7 Bcf/D—of natural gas for a period of 25 years, to begin on the earlier of the date of first export or 7 years from the date of the requested authorization. This order follows the DOE’s previous authorizations for Venture Global to export to FTA countries, as well as the recent US Federal Energy Regulatory Commission (FERC) Order Granting Authorizations under Sections 3 and 7 of the Natural Gas Act to site, construct, and operate the project.
Co-CEOs Bob Pender and Mike Sabel jointly stated, “This milestone is the culmination of years of effort, and we are proud of the excellent work done by our regulatory, environmental, legal and engineering teams. We are excited that we now have all federal authorizations for our Calcasieu Pass project, and we thank the Department of Energy for their expeditious decision. We are pleased that our Calcasieu Pass buyers—Shell, BP, Edison, Galp, Repsol, and PGNiG—can now deliver our low-cost, US-produced energy worldwide, and we are proud to bring the benefit of the DOE’s decision to our country and our local communities in Louisiana. We have filed our implementation plans with FERC to commence site works imminently.”
The 930-acre, 10-mtpa project site is located in Cameron Parish, Louisiana, south of the city of Lake Charles, where the Calcasieu Ship Channel meets the Gulf of Mexico. The location is in close proximity to several major interstate natural gas pipelines and is situated in the middle of one of the most active trading areas for pipeline-quality natural gas in North America. The project site is secured under exclusive agreements for a term of up to 70 years.
Lowering LNG Cost
To offset the rising costs of LNG, Venture Global has adopted a new design model that the company believes will eventually replace traditional liquefaction plant configurations in the US. The design uses a comprehensive process solution based on mid-scale, modular, factory-fabricated liquefaction trains.
According to the company, the design is fundamentally different from more common, highly customized projects that have typically adapted plant designs used elsewhere in the world. Whereas the more traditional projects are constructed almost entirely on site, the new design enables suppliers to manufacture and assemble much of a project offsite in a factory-like setting. The controlled setting optimizes efficiency, predictability, and quality. The ability to use components that are readily available from multiple vendors lowers production complexity and leverages supplier competition to lower materials costs. Additionally, because equipment delivery times are shorter, project startup is faster than at more traditionally designed plants.
The liquefaction trains will use highly efficient, combined-cycle gas turbine power plants from BHGE that will make the LNG export facilities among the cleanest in the world. In combined-cycle power plants, the heat created in the process is recovered and used to produce additional power and create higher efficiency. Another advantage of gas-turbine-driven plants is that they have a smaller carbon footprint than those using other types of power generation.
Venture Global has executed an integrated turnkey engineering, procurement, and construction contract with Kiewit to design, engineer, construct, commission, test, and guarantee the Calcasieu Pass facility.
Freeport LNG Train 1 Begins Production
Freeport marks the sixth major LNG export facility to start operations in the US. Commercial deliveries are expected to begin in September, with Osaka Gas and JERA taking half of the Train 1’s offtake capacity.
July Marks Record Month for Gas Deliveries To US LNG Export Facilities
The US EIA reports that natural gas deliveries producting LNG for export reached 6.0 Bcf/D in July. Deliveries to LNG export facilities have been the fastest growing among all natural gas consumption sectors this year.
Shenzhen Gas Set to Open New LNG Terminal
The launch will make Shenzhen Gas the second Chinese city gas distributor backed by a local government to own an LNG import facility, following Shenergy Group’s Shanghai import terminal. Eni is set to deliver an initial cargo to the facility.
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
16 August 2019
12 August 2019
14 August 2019
14 August 2019