FERC Approves New LNG Terminal

The Federal Energy Regulatory Commission approved several new natural gas projects, including the construction of a new marine terminal for liquefied natural gas (LNG) and expansion of a previously approved LNG project that will increase and enhance the energy infrastructure in the Gulf Coast region of the United States.

The Commission approved a proposal by Corpus Christi LNG, L.P. and Cheniere Corpus Christi Pipeline Company to construct and operate a new LNG terminal and related pipeline facilities near Corpus Christi, Texas.

The Commission also approved an amended proposal by Cameron LNG, LLC to expand its facilities in Hackberry, LA to receive larger LNG tankers at its terminal that is currently under construction. In separate decisions, the Commission approved three new storage facilities.

FERC Chairman Pat Wood, III said, “These facilities add much needed infrastructure to meet our Nation’s ever-increasing demand for reliable and affordable energy.”

The Commission authorized Corpus Christi LNG to construct and operate an LNG terminal to import, store and vaporize approximately 2.6 billion cubic feet (Bcf) of LNG per day. In addition, the Commission authorized Cheniere Pipeline Company to construct and operate a 23-mile, 48-inch diameter pipeline that would extend from the proposed terminal and interconnect with various interstate and intrastate pipeline facilities in San Patricio County, TX.

The Corpus Christi project is the fourth new LNG terminal approved by the Commission. It will include the construction of an LNG marine terminal consisting of a turning basin and two protected berths; three 160,000 cubic meter storage tanks, LNG vaporization and sendout facilities. The Commission will require Corpus Christi LNG to make the proposed facilities available for service within three years of the date of the Commission’s order.

In another decision, the Commission authorized Cameron LNG to modify the project’s berthing configuration to enable it to accommodate larger LNG tankers and reduce tanker traffic in the Calcasieu Ship Channel (Docket No. CP02-378-002). The project was previously approved by the Commission in an order issued September 2003. After an exhaustive environmental, safety and security analysis and consultation with other agencies, including the U.S. Coast Guard, the Commission ruled that the modification proposal, with implementation of certain mitigation measures to minimize impacts, will enable larger tankers to use Cameron’s facilities in a safe and secure manner.