Third LNG Project Awarded Export Permit

abarrelfullabarrelfull wrote on 12 Aug 2013 05:48
Tags: lng usa

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I don't know how many LNG project in the USA will come to fruition, but the number that have permission to freely export LNG is slowly growing. The Trunkline Lake Charles LNG Export Terminal Project, a JV between BG Group and Southern Union is the latest to recieve FERC approval.

The project has received an order from the Department of Energy conditionally granting authorization to export liquefied natural gas to non-free trade agreement nations

As most of the existing free trade agreement nations are not potential customers, this approval is the key one.

The project is planned to have 15 million tons per year capacity and is expected to enter operations in 2018.

This is the third project to receive such approval. The 18 Million tons per year Sabine Pass Lng Terminal Project was awarded approval last year and the 13.2 Million tons per year Freeport Lng Export Terminal Project was the second back in May this year. So now we have 46 million tons of capacity approved.

This will have a significant effect on a global market that is about 350 million tons at present. Most importantly it puts the current pricing arrangements under threat, as this gas will be sold on a Henry Hub indexed basis. In a sector with stable pricing, this is nothing short of a revolution that will create massive problems for those unable to cope.

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