Commonwealth LNG Files for FERC Certificate Aiming 2024 Launch

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  • Project joins crowded field of second-wave US developers.
  • Proposal calls for six-train, 8.4 million mt/year terminal in Cameron Parish.

Privately held Commonwealth LNG filed with US regulators on Tuesday its formal application for a permit to build an 8.4 million mt/year export terminal and affiliated feedgas pipeline interconnect in Cameron Parish, reports The Advocate.

Permit to build LNG facility

Houston-based Commonwealth LNG has filed a formal application with the Federal Energy Regulatory Commission for permits to build a liquefied natural gas export facility on nearly 400 acres in Cameron Parish, and is expected to make a final investment decision on the project by the end of 2020.

Commonwealth LNG is proposing building six units, with capacity to create and ship at least 8.4 million tons and up to 9.5 million tons of LNG each year by 2024. The project is expected to cost $4 billion and would support about 2,000 construction jobs.

In June, Commonwealth LNG inked a deal with Gunvor Singapore Pte Ltd., a subsidiary of a Swiss energy trading business, to buy LNG from the Louisiana facility for 15 years.

LNG export facilities

Rosharon, Texas-based Mammoet USA South Inc. was awarded a consulting services contract for the export facility while London-based TechnipFMC and Houston-based Lloyd Engineering are conducting engineering and development services for the export terminal.

Financial investors for the project have not yet been disclosed, but Tokyo-based Sumitomo Mitsui Banking Corp. was hired to be a financial adviser.

The company initially submitted pre-filing paperwork in August 2017 and had projected that it would be in commercial operation by 2022. It was not immediately clear why the project was delayed.

More than half a dozen companies are looking to cash in on exporting liquefied natural gas from the tip of Louisiana.

Commercial operations of LNG facilities

  • Cheniere Energy’s $18 billion Sabine Pass made its first shipment in 2016. Cheniere is building a sixth LNG unit on-site, which is expected go begin commercial operations by 2023.
  • Sempra Energy’s Cameron LNG, which cost $10 billion, exported its first shipment of LNG in March and expects to begin commercial operations before the end of the year.
  • Venture Global LNG plans to build three export facilities, Calcasieu Pass, Plaquemines LNG and Delta LNG, for a total in $15 billion investment by 2024.
  • Tellurian’s Driftwood LNG is building a $30 billion LNG facility and expects to start shipping by 2023.
  • Australian company Magnolia LNG is proposing a $4.4 billion export facility and will make a final investment decision by the end of this year.
  • Lake Charles LNG, a joint venture between Shell and Energy Transfer Partners, signed an agreement to develop an export facility but a final investment decision has not been made either.

FERC application

Two proposed LNG projects have not yet filed formal applications with the Federal Energy Regulatory Commission since being announced several years ago.

In 2014, Monkey Island LNG proposed a $6.5 billion LNG export facility.

In 2015, Louisiana-based G2 LNG LLC proposed an $11 billion LNG facility in Cameron Parish.

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Source: The Advocate

 

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