Written by Chloe Marie – Research Specialist
In May 2017, we wrote three articles addressing the then-pending
and approved
applications for LNG export projects in the United States. Since that time,
many legal developments have occurred and so we will once again provide a
discussion of LNG export developments through a multi-part series.
The first two articles in the series addressed
approved applications for LNG export projects in the United States with the first
article providing an overview on the development of six projects in
Louisiana and the second
one focusing on five projects in Texas and one project in Georgia
that have been approved by both the Federal Energy Regulatory Commission (FERC)
and the U.S. Department of Energy (DOE).
The third
article in our series addressed the status of pending LNG export
project applications in the states of Alaska, Florida, and Louisiana while a fourth
article addressed the status of similar applications in the states
of Mississippi, Oregon, and Texas. The fifth
article in our series provided an overview of LNG export projects
that have moved beyond the mere application stage and are currently in
operation.
While we had planned to conclude our series after the
fifth article, we decided to expand the series to include one additional topic,
that being LNG export projects that have been delayed or are considered to be shelved
due to lack of progress on the projects. These projects include two in
Louisiana, one in Maine, and one in Texas.
Louisiana:
The Cambridge
Energy (CE) FLNG Terminal Project (FERC docket PF13-11)
The CE FLNG Terminal Project involved the construction
and operation of natural gas processing and liquefaction facilities to be
located in Plaquemines Parish, Louisiana.
CE FLNG, LLC, sought
authorization to export approximately 389.6 Bcf of natural gas per year to FTA
and NFTA countries in September 2012, and it obtained
approval for export to FTA countries in November 2012. The application for
authorization to export LNG to NFTA countries was not acted upon. In December
2013, FERC announced
that it would prepare an Environmental Impact Statement (EIS) addressing the
project’s potential impacts on the environment. According to a media
report, however, the project has been set aside due to a continuous
“changing schedule and the lack of full set of draft resource reports” in
support of the pre-filing process. The media report dated July 2015 reported
that “FERC stressed that should CE FLNG be unable to provide draft resource
reports in support of its project by August 1, 2015, it will suspend its
participation in the pre-filing process that CE FLNG will have to start anew
once it is prepared to move forward.”
The Mississippi
River LNG Project (FERC docket PF14-17-000)
In August 2014, Louisiana LNG Energy, LLC, (LLNG) obtained
authorization from the U.S. Department of Energy (DOE) to export up to 103.4
Bcf per year of liquefied natural gas from the proposed Mississippi River LNG
Project to FTA countries for a 25-year period. This Project was to include the
construction of four liquefaction trains, a marine loading terminal and LNG
truck loading facilities, and associated facilities to be located on the east
bank of the Mississippi River in Plaquemines Parish, Louisiana. On February 18,
2014, LLNG filed a separate application with the U.S. Department of Energy
(DOE) to export the same amount of LNG to NFTA countries.
On June 12, 2017, DOE issued an Order
to Show Cause alleging that LLNG failed to comply with the
semi-annual reporting requirements set forth in the FTA authorization and also
had failed to inform DOE that FERC terminated the pre-filing review process due
to LLNG’s inaction. In a letter dated December 13, 2016, FERC indeed stated
that LLNG “has not filed the application needed for staff to continue the
environmental review of [the] project”. Consequently, on
July 24, 2017, DOE issued an Order
vacating the prior FTA authorization granted in August 2014 and dismissing the
February 2014 application to export LNG to NTFA countries considering it
“necessary” because “LLNG is no longer pursuing its proposed LNG export project.”
Maine:
The Downeast LNG
Import-Export Project (FERC docket PF14-19-000)
The Downeast LNG Project
was initially designed to be an import terminal facility located in Robbinston,
Maine; however, on July 22, 2014, Downeast LNG, Inc. filed a request with FERC
to initiate the pre-filing review process of the Project for the conversion of
its proposed import terminal facility into a bi-directional import and export
LNG terminal due to changing market conditions.
In two separate applications filed in October 2014,
Downeast LNG, Inc. sought approval from the U.S. Department of Energy (DOE) to
export approximately 168 Bcf of liquefied natural gas per year to FTA and NFTA
countries. In March 2015, DOE granted
such authorization for LNG export to FTA countries and the NFTA countries
application remained under review.
On August 17, 2016, FERC issued an Order
dismissing dockets and terminating proceedings for the Downeast LNG
Import-Export Project pointing out “no significant recent progress toward the
development of the bidirectionally import/export project application or in
stakeholder engagement.” Subsequently, and at the request of Downeast LNG,
Inc., DOE issued an Order
vacating the prior FTA authorization granted in March 2015 and dismissing the
application to export LNG to NFTA countries.
Texas:
The Eos LNG Export
Project (unknown FERC docket)
The Eos LNG Export Project involved the construction
and operation of a new LNG export terminal facility at the Port of Brownsville
in Brownsville, Texas. Interestingly, the project was to be built on a floating
liquefaction unit on a barge and existing LNG tanker anchored to a dock at the
Port of Brownsville.
In August 2013, Eos LNG, LLC, applied before the U.S.
Department of Energy (DOE) for two separate authorizations to export up to 584
Bcf per year of liquefied natural gas to FTA and NFTA countries. The U.S.
Department of Energy (DOE) granted
approval to export LNG to FTA countries in November 2013 whereas the NFTA
application remained under DOE review.
According to EOS LNG Founder, Andrew Kunian, EOS LNG,
LLC, had anticipated to submit the FERC filings in 2015. Based upon our
research, however, there is no record of the company initiating the FERC
pre-filing process.
References:
The Cambridge
Energy (CE) FLNG Terminal Project
The Mississippi
River LNG Project
DOE/FE
Order No. 3482-A, Order Vacating Long-Term, Multi-Contract Authorization to
Export Liquefied Natural Gas by Vessel to Free Trade Agreement Nations and
Dismissing Application to Export Liquefied Natural Gas by Vessel to
Non-Free Trade Agreement Nations (July 24, 2017)
The Downeast LNG
Import-Export Project
The Eos LNG
Export Project
Additional
Resources:
Shale Law in the Spotlight – Existing LNG Export
Facilities in the United States: Alaska, Louisiana, Texas, and Maryland (June
13, 2019)
This
material is based upon work supported by the National Agricultural
Library, Agricultural Research Service, U.S. Department of Agriculture.
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