June 14, 2019
Delayed or Abandoned LNG Export Projects in the United States: Louisiana, Maine, and Texas
Written by Chloe Marie – Research Specialist
In May 2017, we wrote three articles addressing the then-pending and approved applications for LNG export projects in the United States. Since that time, many legal developments have occurred and so we will once again provide a discussion of LNG export developments through a multi-part series.
The first two articles in the series addressed approved applications for LNG export projects in the United States with the first article providing an overview on the development of six projects in Louisiana and the second one focusing on five projects in Texas and one project in Georgia that have been approved by both the Federal Energy Regulatory Commission (FERC) and the U.S. Department of Energy (DOE).
The third article in our series addressed the status of pending LNG export project applications in the states of Alaska, Florida, and Louisiana while a fourth article addressed the status of similar applications in the states of Mississippi, Oregon, and Texas. The fifth article in our series provided an overview of LNG export projects that have moved beyond the mere application stage and are currently in operation.
Louisiana:
The Cambridge Energy (CE) FLNG Terminal Project (FERC docket PF13-11)
The CE FLNG Terminal Project involved the construction and operation of natural gas processing and liquefaction facilities to be located in Plaquemines Parish, Louisiana.
CE FLNG, LLC, sought authorization to export approximately 389.6 Bcf of natural gas per year to FTA and NFTA countries in September 2012, and it obtained approval for export to FTA countries in November 2012. The application for authorization to export LNG to NFTA countries was not acted upon. In December 2013, FERC announced that it would prepare an Environmental Impact Statement (EIS) addressing the project’s potential impacts on the environment. According to a media report, however, the project has been set aside due to a continuous “changing schedule and the lack of full set of draft resource reports” in support of the pre-filing process. The media report dated July 2015 reported that “FERC stressed that should CE FLNG be unable to provide draft resource reports in support of its project by August 1, 2015, it will suspend its participation in the pre-filing process that CE FLNG will have to start anew once it is prepared to move forward.”
The Mississippi River LNG Project (FERC docket PF14-17-000)
In August 2014, Louisiana LNG Energy, LLC, (LLNG) obtained authorization from the U.S. Department of Energy (DOE) to export up to 103.4 Bcf per year of liquefied natural gas from the proposed Mississippi River LNG Project to FTA countries for a 25-year period. This Project was to include the construction of four liquefaction trains, a marine loading terminal and LNG truck loading facilities, and associated facilities to be located on the east bank of the Mississippi River in Plaquemines Parish, Louisiana. On February 18, 2014, LLNG filed a separate application with the U.S. Department of Energy (DOE) to export the same amount of LNG to NFTA countries.
On June 12, 2017, DOE issued an Order to Show Cause alleging that LLNG failed to comply with the semi-annual reporting requirements set forth in the FTA authorization and also had failed to inform DOE that FERC terminated the pre-filing review process due to LLNG’s inaction. In a letter dated December 13, 2016, FERC indeed stated that LLNG “has not filed the application needed for staff to continue the environmental review of [the] project”. Consequently, on July 24, 2017, DOE issued an order vacating the prior FTA authorization granted in August 2014 and dismissing the February 2014 application to export LNG to NTFA countries considering it “necessary” because “LLNG is no longer pursuing its proposed LNG export project.”
Maine:
The Downeast LNG Import-Export Project (FERC docket PF14-19-000)
The Downeast LNG Project was initially designed to be an import terminal facility located in Robbinston, Maine; however, on July 22, 2014, Downeast LNG, Inc. filed a request with FERC to initiate the pre-filing review process of the Project for the conversion of its proposed import terminal facility into a bi-directional import and export LNG terminal due to changing market conditions.
In two separate applications filed in October 2014, Downeast LNG, Inc. sought approval from the U.S. Department of Energy (DOE) to export approximately 168 Bcf of liquefied natural gas per year to FTA and NFTA countries. In March 2015, DOE granted such authorization for LNG export to FTA countries and the NFTA countries application remained under review.
On August 17, 2016, FERC issued an order dismissing dockets and terminating proceedings for the Downeast LNG Import-Export Project pointing out “no significant recent progress toward the development of the bidirectionally import/export project application or in stakeholder engagement.” Subsequently, and at the request of Downeast LNG, Inc., DOE issued an order vacating the prior FTA authorization granted in March 2015 and dismissing the application to export LNG to NFTA countries.
Texas:
The Eos LNG Export Project (unknown FERC docket)
The Eos LNG Export Project involved the construction and operation of a new LNG export terminal facility at the Port of Brownsville in Brownsville, Texas. Interestingly, the project was to be built on a floating liquefaction unit on a barge and existing LNG tanker anchored to a dock at the Port of Brownsville.
In August 2013, Eos LNG, LLC, applied before the U.S. Department of Energy (DOE) for two separate authorizations to export up to 584 Bcf per year of liquefied natural gas to FTA and NFTA countries. The U.S. Department of Energy (DOE) granted approval to export LNG to FTA countries in November 2013 whereas the NFTA application remained under DOE review.
According to EOS LNG Founder, Andrew Kunian, EOS LNG, LLC, had anticipated to submit the FERC filings in 2015. Based upon our research, however, there is no record of the company initiating the FERC pre-filing process.
References:
The Cambridge Energy (CE) FLNG Terminal Project
LNG World News, “FERC questions CE FLNG project’s viability” (July 7, 2015)
The Mississippi River LNG Project
FE Docket No. 14-19-LNG, 14-29-LNG, Order to Show Cause (June 12, 2017)
The Downeast LNG Import-Export Project
FERC Order Dismissing Dockets and Terminating Proceedings (Issued August 17, 2016)
The Eos LNG Export Project
The Center for Agricultural and Shale Law is a partner of the National Agricultural Law Center (NALC) at the University of Arkansas System Division of Agriculture, which serves as the nation’s leading source of agricultural and food law research and information. This material is provided as part of that partnership and is based upon work supported by the National Agricultural Library, Agricultural Research Service, U.S. Department of Agriculture.
