Photo courtesy Center for Liquefied Natural Gas
A Louisiana-based firm for which former Gov. Buddy Roemer is chairman has added its name to the series of potential players in south Louisiana’s burgeoning liquefied natural gas export industry. G2 LNG says it expects to break ground on a new $11 billion LNG export facility on the Calcasieu River Ship Channel in Cameron Parish in mid-2017. If all goes according to plan, the facility will come online for LNG exports in 2020, officials from G2 LNG say.
The proposed facility is expected to export about 14 million metric tonnes of LNG annually to countries around the world, the company says in a news release.
“The G2 LNG project has several unique advantages that have led to advanced discussions with potential customers in Asia, Europe, India and the Caribbean,” Roemer says in a prepared statement.
The company has received permission from the U.S. Department of Energy to export LNG to Free Trade Agreement countries and is awaiting a decision in 2017 from DOE on its application to export to non-FTA countries.
The project is expected to create 3,500 construction jobs and 250 permanent jobs averaging $85,000 annually, company officials say, adding they are also working with state and local officials to bring on local vendors for the project.
“G2 LNG is a Louisiana-owned company and is dedicated to continue hiring Louisiana people to build and operate this facility,” Roemer says. “Our people have a long history and knowledge of the energy industry in this state, and we will use that know-how to make this project a great success.”
Houston-based KBR was announced as the FEED engineering contractor on the project. Additionally, KBR will provide the technical documentation required by the Federal Energy Regulatory Commission during the pre-filing process.
Other recent developments in Louisiana LNG include:
• Cheniere Energy’s Sabine Pass plant in Cameron Parish is about to become the first facility in the contiguous “lower 48” of the U.S. to export LNG. The company announced in January it expects to export the first LNG commissioning cargo from its Sabine Pass liquefaction project in late February or March.
• Williams and Williams Partners LP announced that the Federal Energy Regulatory Commission has approved an application for Gulf Trace, a 1.2 million dekatherm per day expansion of the Transco pipeline system to serve the Sabine Pass project. The target in-service date is first quarter 2017.
• Houston-based Magnolia LNG has inked a $4.35 billion deal with an engineering joint venture between Houston-based KBR Inc. and South Korea-based SK Engineering & Construction for its LNG liquefaction facility near Lake Charles. The engineering, procurement and construction contract includes up to four LNG production trains designed to produce 2 million tons per year or more per train. The contract also includes two 160,000-cubic-meter containment storage tanks, LNG marine and ship-loading facilities, supporting infrastructure, and all required approvals and licenses.
• SCT&E LNG announced it has selected Air Products and Chemicals Inc. to provide its proprietary propane pre-cooled mixed refrigerant process (AP-C3MR™ process) and its main cryogenic heat exchangers (MCHE) technology, equipment, and related process license for the SCT&E LNG project located on Monkey Island in Cameron Parish. Greg Michaels, chairman and CEO of SCT&E LNG, said the company expected to begin design and related engineering in January 2016. “Our project schedule and commencement of the FERC process is directly matched to global LNG demand in 2022 and beyond,” he added.
• In December, Dongsung FineTec Co. Ltd. announced it will create 250 new direct jobs and make a $5 million capital investment in a cryogenic insulation manufacturing facility in Lake Charles. Based in South Korea, Dongsung FineTec provides specialized high-performance insulation to LNG plants and other industrial sites around the world. The company will lease an 11-acre site at the Port of Lake Charles’ Industrial Park East for its manufacturing complex. The region’s dynamic natural gas liquefaction and export industry will provide a significant customer base for Donsung FineTec.
• BG Group and Energy Transfer Partners have gained approval from the U.S. energy regulator for their LNG production and export plant in Lake Charles, the companies said. The go-ahead is a key milestone for the project, one of 10 major LNG projects in the works for southwest Louisiana. The partners said they would take a final investment decision on the project, expected to export around 15 million metric tonnes of LNG a year, in 2016 and that the first LNG exports from the plant could follow four years after construction starts. The Lake Charles project will convert Energy Transfer’s existing LNG regasification facility into a liquefaction plant, one of the aspects that the developers say will make it one of the most competitive new LNG terminals in the United States. BG, which will be operating the terminal once completed, will be responsible for choosing contractors for the construction of the project.
Originally published in the first quarter 2016 edition of 10/12 Industry Report. Read more from this issue at 1012industryreport.com.