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FERC gives environmental green light to Port Arthur LNG export terminal

Tue 05 Feb 2019 by John Snyder

FERC gives environmental green light to Port Arthur LNG export terminal
The proposed Port Arthur LNG projects would encompass two liquefaction trains, each with a capacity of 6.73 mta of LNG for export

San Diego-based electric and natural gas infrastructure company Sempra Energy has received the final environmental impact statement (FEIS) from the US Federal Energy Regulatory Commission (FERC) to construct the Port Arthur LNG export terminal in Jefferson County, Texas, as well as the Texas and Louisiana connector pipeline projects that will deliver feed gas to the new liquefaction facility.

Sempra North American Infrastructure Group president and chief executive Carlos Ruiz Sacristán called the issuance of the FEIS a “significant step forward” for the project.

The FEIS is the final step in the environmental review process before FERC can issue an order approving the project.

According to FERC, the proposed Port Arthur LNG projects would encompass two liquefaction trains, each with a capacity of 6.73 mta of LNG for export, three 160,000 m3 capacity LNG storage tanks, a refrigerant storage area and truck unloading facilities, a condensate storage area and truck loading facilities, a new marine slip with two LNG vessel berths and an LNG transfer system, and a materials off-loading facility and Pioneer Dock.

The Texas Connector Project involves constructing approximately 63 km of 106-cm diameter pipeline to bring feed gas to the liquefaction facilities.

For the Texas Connector pipeline feed gas would be supplied by Kinder Morgan Louisiana Pipeline LLC, Natural Gas Pipeline Company of America, Houston Pipeline Company LP, Texas Eastern Transmission, LP (TETCO), Florida Gas Transmission Company, LLC, and Golden Triangle Storage, Inc/Centana Intrastate Pipeline, LLC.

The Louisiana Connector Project calls for constructing approximately 211 km of 106 cm diameter pipeline to bring feed gas to the facility. Related facilities include three compressor stations and meter stations at the pipeline interconnects.

Centana Interstate Pipeline, LP, TETCO, Tennessee Gas Pipeline Company, Market Hub Partners – Egan, Pine Prairie Energy Center, Texas Gas Transmission, LLC, ANR Pipeline Company, and Columbia Gulf Transmission, LLC would all provide feed gas through the Louisiana Connector pipeline.

Last month, Port Arthur LNG and the Polish Oil & Gas Company signed a definitive 20-year sale-and-purchase agreement for LNG from Port Arthur LNG as part of Sempra Energy’s long-term goal of exporting 45 mta of North American LNG to meet global demand. The agreement is subject to certain conditions, including Port Arthur LNG making FID.

In 2018, Port Arthur LNG selected Bechtel as the engineering, procurement, construction and commissioning contractor for the project, subject to reaching a definitive agreement.  In June 2017, Port Arthur signed a memorandum of understanding with Korea Gas Corporation for potential participation in the Port Arthur LNG project.

Developing the Port Arthur LNG liquefaction facility is contingent upon obtaining additional customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, incentives and other factors, and reaching a final investment decision.

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