Monday, September 18, 2017

FERC Approves Third Major LNG Export Project for Lower 48 -- September 18, 2017; US Close To Surpassing Qatar In LNG Export

Before reading this post, you might want to re-read the post about a looming global LNG deficit which we might see in as little as five years from now.

For investors, this almost seems like an open-book test. Nuclear energy is dead -- just saying.

FERC okays Elba Island LNG liquefaction trains. From Argus Media, data points:
  • off Savannah, Georgia, which houses an existing LNG import terminal
  • Kinder Morgan owns 51 percent of Elba Island LNG export terminal
  • 10 liquefaction trains
  • third major LNG export project to come on line in the Lower 48
  • to start operating in mid-2018, less than a year from now
  • the other two previously approved:
    Louisiana, Sabine Pass, started operating February, 2016
  • Maryland, Cove Point, on track to start operating later this year
  • Elba Island: the only major LNG export terminal in the Lower 48 that will use small movable modular liquefaction trains: lower cost; faster construction schedule
  • estimated cost (with associated pipeline): $2.2 billion
  • capacity: 2.5 million tons/year, equivalent to 350 million cf/day (9.9 million cubic metric tons/day) of gas; peak capacity of 4 million tons/year
  • in comparison:
    Sabine Pass, 25 million tons/year; $20 billion
Final line from the article:
The six facilities being built would have combined baseload capacity of about 64mn t/yr and peak capacity of about 75mn t/yr, almost equaling Qatar capacity of 77mn t/yr.
For previous posts on this story, see these links:
Meanwhile, In Canada: 
British Columbia-Based Aurora LNG Export Terminal Project Canceled

From The Oil & Gas Journal, data points:
  • Aurora LNG and its partners: Nexen Energy and INPEX Gas British Columbia
  • had studied the project for four (4) years
  • reason cited: "an adverse macroeconomic environment" -- whatever that means
Until told otherwise, I will assume the "macroeconomic environment" is code for the cost of fighting faux environmentalists for the next three decades.

The folks did say that upstream operations in the Horn River region of northeast BC would continue.. who they will sell all that NG to is anyone's guess.

And that's the difference between Trudeau's anti-growth policies and Trump's make America great policies.

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