Venture Global LNG has secured approval of the US Federal Energy Regulatory Commission (FERC) for its $4.5bn Calcasieu Pass LNG project in Cameron Parish, Louisiana.
Image: FERC approves the $4.5bn Calcasieu Pass LNG project. Photo: courtesy of Carlo San/Freeimages.com.
Along with the Calcasieu Pass LNG project, the FERC approved the associated TransCameron Pipeline, which will extend from the proposed LNG terminal to near Grand Chenier, Louisiana.
The FERC has issued the Order Granting Authorizations to the LNG export project and the pipeline under Sections 3 and 7 of the Natural Gas Act, paving way for their construction.
US Deputy Secretary of Energy Dan Brouillette said: “With the United States now being the world’s largest producer of oil and natural gas, it is critical we build the necessary infrastructure to get these natural resources to market.
“This move by FERC is a significant step to bring more U.S. LNG into the market, as well as streamline the energy infrastructure permitting and authorization process. More U.S. gas in the international market will ultimately increase competition and drive down prices for consumers.”
The LNG export facility, which will be built at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico in the Cameron Parish, is targeted to be commissioned in 2022. It will have a nameplate capacity of 10 million tons per annum (MTPA).
Venture Global LNG co-CEOs Bob Pender and Mike Sabel said: “With our FERC order in hand and our project contracted with binding 20-year sale and purchase agreements (SPAs) with Shell, BP, Edison S.p.A., Galp, Repsol and PGNiG, we plan to immediately commence construction activities in Louisiana in close coordination with FERC and other agencies.
“This milestone is the culmination of years of effort, and we are proud of the excellent work done by our regulatory, environmental, legal and engineering teams.”
The Calcasieu Pass LNG project will be equipped with a process solution developed by GE Oil & Gas that uses mid-scale, modular, factory-fabricated liquefaction trains.
In December 2018, Venture Global LNG awarded an engineering, procurement, and construction (EPC) contract of the LNG project to Kiewit. Under the contract, the company’s subsidiary Kiewit Louisiana will design, engineer, construct, commission, test and guarantee the Calcasieu Pass LNG export facility.
Apart from the Calcasieu Pass LNG project, Venture Global LNG is developing the Plaquemines LNG export terminal with an investment of $8.5bn in Louisiana. Planned to be built on the west bank of the Mississippi River, the Plaquemines LNG export terminal will have an export capacity of 20 MTPA.