Two LNG projects get federal approval
FERC votes 3-1 to OK terminals in Texas and Louisiana, adding to momentum in industry
The Federal Energy Regulatory Commission approved the construction Thursday of two liquefied natural gas export terminals in Texas and Louisiana, adding to the momentum of an expected yearslong expansion of the burgeoning U.S. LNG industry.
The commission, on a 3-1 vote, approved Driftwood LNG in Calcasieu Parish, La., and the Port Arthur LNG in Southeast Texas. The developers of the projects, Tellurian of Houston and Sempra Energy of San Diego, respectively, plan to make final investment decisions this year.
“We are one step closer to reaching a final investment decision and delivering low-cost, reliable and clean U.S. natural gas to world markets,” said Carlos Ruiz Sacristán, CEO of Sempra North American Infrastructure, a unit of Sempra Energy. “Port Arthur LNG should help us achieve our goal to become one of the largest exporters of North American liquefied natural gas.”
The Driftwood and Port Arthur projects are the latest LNG export terminals to move ahead. In February, FERC approved a Calcasieu Pass LNG project, which is being developed in Cameron Parish, La., by the Venture Global LNG of Arlington, Va. On Wednesday, the Houston pipeline company Kinder Morgan Houston said the the first of 10 production units at its Elba Island LNG export terminal in Savannah, Ga., is expected to be placed into service by May 1.
FERC also gave Kinder Morgan’s proposed Gulf LNG export terminal in Pascagoula, Miss., the green light in a final environmental impact statement released Wednesday. FERC is expected to make a final permit decision on the project in July.
The LNG boom is driven by the
flood of cheap natural gas from U.S. shale basins and growing demand for natural gas as customers around the world seek cleaner-burning alternatives to coal and other fuels that emit large amounts of greenhouse gases.
Natural gas is considered a bridge fuel to renewable energy as governments seek to reduce greenhouse gas emissions and slow climate change.
The approval of the Driftwood and Port Arthur projects signaled that FERC commissioners have reached a lasting resolution on their disagreement earlier this year over accounting for he impact of LNG projects on climate change. That disagreement had delayed a decision on the Calcasieu Pass project earlier this year.
“Today’s orders show that FERC is making a lot of headway on processing LNG applications in a more efficient manner, ” FERC Chairman Neil Chatterjee said in a statement. “LNG exports can help increase the availability of inexpensive, clean-burning fuel to our global allies who are looking for an efficient, affordable, environmentally friendly source of generation.”
The Driftwood LNG facility in Louisiana is expected to reach a capacity of 27.6 million metric tons of LNG per year. The Port Arthur Liquefaction Project, which is to be built on the site of an LNG import facility, is projected to have an export capacity of 13.5 million metric tons per year.