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DOE order of processing for the next five Non Free Trade Agreement LNG export applications

The U.S. Department of Energy currently has 20 long-term applications to export LNG to Non Free Trade Agreement countries waiting for approval.   The DOE order of processing the applications uses criteria based on when and if the applicant has received approval from the Federal Energy Regulatory Commission for the pre-filing process.

Dominion Cove Point LNG was approved by DOE on September 12th, 2013 and that was the fourth U.S application approved by the DOE.  As of September 12th, 2013 below are the next five applications in order that the DOE will review for approval.  

1.  Freeport LNG Expansion, L.P. and FLNG Liquefaction, LLC - Freeport, Texas

The project has asked for approval to export up to 1.4 billion cubic feet per day for a 25 year period.  The project has applied to export the LNG from Quintana Island near Freeport, Texas. Freeport LNG is proposing to add liquefaction infrastructure at the existing import terminal to provide export capabilities.   Note this application was filed independent of their separate application which was already approved in May, 2013This is their second DOE LNG application for exports to Non-FTA nations.  When added to the first proposed liquefaction project approved by DOE, the combined projects will have the capacity to produce LNG for export from domestic sources equivalent of 2.8 billion cubic feet per day.  Michael Smith and ConocoPhillips (COP) each own 50% of the general partner of Freeport LNG Development, L.P. (FLNG), Freeport LNG-GP, Inc. (FLNG-GP).   FLNG currently has four limited partners that, collectively, own all of the economic interests in FLNG:  (1) Freeport LNG Investments, LLLP, an entity owned by Michael S. Smith; (2) ZHA FLNG Purchaser, LLC, (Zachry Holdings, Inc.) ; (3) Texas LNG Holdings, LLC, a wholly owned subsidiary of The Dow Chemical Company; and (4) Turbo LNG, LLC, a wholly owned subsidiary of Osaka Gas Co., Ltd.  

2. Cameron LNG, LLC - Hackberry, Louisiana

Cameron LNG has applied to export up to 1.7 billion cubic feet per day for a 20 year period. Cameron LNG, a subsidiary of Sempra Energy, is a liquefied natural gas (LNG) receiving terminal on a 260-acre site along the Calcasieu Channel in Hackberry, Louisiana. The completed liquefaction facility will be comprised of three liquefaction trains with 4.5 million tonnes per annum of capacity each, 13.5 Mtpa total. Cameron LNG states that the sources of natural gas for the project will include supplies available from the Texas and Louisiana producing regions, as well as various unconventional supply areas, such as the Barnett, Haynesville, and Eagle Ford shale gas formations. Cameron has stated that their customers will be able to deliver natural gas supplies to the Terminal from five interstate pipelines: Florida Gas Transmission Company, Transcontinental Gas Pipeline Company, LLC, Texas Eastern Transmission Corporation, Tennessee Gas Pipeline Company, and Trunkline Gas Company. In addition, Cameron notes that the terminal is in close proximity to the Henry Hub and to 11 other market centers in Louisiana and Texas, which will give customers additional options for purchasing supplies. The LNG receipt terminal has two marine berths capable of accommodating Q-Flex sized LNG ships

3. Jordan Cove Energy Project, L.P. - Port of Coos Bay, Oregon

Jordan Cove Energy Project, L.P. is requesting authorization to export as LNG both natural gas produced domestically in the United States and natural gas produced in Canada and imported into the United States, in an amount up to the equivalent of 0.8 billion cubic feet per day over a 25-year period.

Jordan Cove Energy Project is being developed by Veresen Inc. (formerly Fort Chicago Energy L.P.) Veresen is a Calgary, Alberta based company active in the energy infrastructure investment sector. Veresen Inc. recently applied to export Canadian natural gas for the Jordan Cove export project The Project is located within the Port of Coos Bay on the North Spit of lower Coos Bay, on an undeveloped site zoned for industrial development, approximately 7 nautical miles from the entrance of the federally controlled and maintained navigation channel. Jordan Cove and the South Dunes Power Plant sit on 500 acres of privately purchased land designated an Enterprise Zone by the State of Oregon.

Jordan Cove states that rather than enter into long-term natural gas supply or LNG export contracts, it contemplates that its business model will be based primarily on Liquefaction Tolling Agreements (LTA), under which individual customers who hold title to natural gas will have the right to deliver that gas to the Jordan Cove terminal for liquefaction services and to receive LNG in exchange for a processing fee paid to Jordan Cove.

4. LNG Development Company, LLC (d/b/a Oregon LNG) - Warrenton, Oregon

LNG Development Company, LLC (d/b/a Oregon LNG) is requesting authorization to export up to 1.3 billion cubic feet per day over a 25-year period.  LNG Development Company, LLC (d/b/a Oregon LNG) is a subsidiary of Leucadia National Corporation Oregon LNG proposes to construct, own and operate a liquefied natural gas peak-shaving, liquefaction, and export facility located on the Skipanon Peninsula in Warrenton, Oregon. The Oregon LNG project has been designed to include a marine loading terminal, two full-containment 160,000 cubic meter LNG storage tanks, and facilities to support ship berthing and cargo loading. Oregon LNG states that the Oregon LNG Export Project is proposed to export primarily Canadian-sourced natural gas imported into the United States and to a lesser extent supplies of natural gas that may be domestically produced.    Oregon LNG states the project will convert Oregon LNG's pending import receiving terminal and pipeline (Oregon Pipeline) into a bidirectional LNG terminal and pipeline. The Oregon Pipeline is being developed by Oregon LNG's affiliate, Oregon Pipeline Company, LLC. Oregon LNG states that the project will interconnect with the multi-legged system of Williams Northwest Pipeline Company, connecting Pacific Northwest demand centers with British Columbian and Rockies supplies.  Oregon LNG asserts it does not expect that the gas feedstock for the project will be derived to any significant degree from Rockies supply given that the market modeling commissioned by Oregon LNG demonstrates that Canadian supply is the economically preferred resource for the Project.

5.  Cheniere Marketing, LLC - Corpus Christi LNG - Corpus Christi Bay, Texas

When we see the name Cheniere we usually think Sabine Pass LNG exports.  Note this application is for a completely different project which will be located on the Corpus Christi Bay in Texas.  Cheniere Marketing, LLC has requesting authorization to export up approximately 2.1 billion cubic feet per day for a period of 22 years.

The project will be located on the northern shore of the La Quinta Channel northeast of Corpus Christi, Texas.  The project will include three ConocoPhillips Optimized Cascade LNG trains, each with a nominal liquefaction capacity of approximately five million metric tons per year. LNG will be stored in three 160,000 cubic meters full-containment LNG storage tanks.  LNG will be exported on LNG carriers that will arrive at the terminal through the La Quinta Channel in the Corpus Christi Bay. Corpus Christi LNG plans to have three dedicated tugs stationed at the terminal and be capable of receiving and unloading up to 300 LNG vessels per year, each regular carrier taking approximately 10 to 12 hours to unload. The terminal design is almost identical to the first phase of Sabine Pass LNG, with two berths large enough to accommodate the QMax class vessel, one of the largest vessels in the industry.