Gulfstream LNG Development, a mid-sized greenfield LNG export project, has received authorization from the US Department of Energy to export LNG to countries that have a free trade agreement with the US.
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Gulfstream LNG also said it has signed a term sheet for feed gas transportation with a gas pipeline network company, marking significant progress for the project.
The company's project site is in Plaquemines Parish, Louisiana, a state that accounted for 28% of US natural gas exports in 2021, according to US Energy Information Administration data. The site is close to multiple feed gas trunk-line networks and benefits from a robust electrical grid.
Gulfstream LNG has obtained approval to export up to 4 million mt/year of domestically produced LNG on its own behalf and as an agent for others, to all existing and future countries that have, or will enter, into an FTA with the US. The authorization is valid until 2050.
Gulfstream LNG has recently entered into a term sheet agreement with a gas transportation company that operates an extensive pipeline network in the project's surrounding area.
The term sheet establishes a framework for future binding agreements regarding the delivery of feed gas volumes for Gulfstream LNG.
The preliminary agreement reduces project risk significantly, as the gas transportation company's pipeline network will connect to major trunklines in the region, including those linked to prominent gas-producing basins such as Marcellus and Haynesville.
With the US DOE approval, Gulfstream LNG was preparing to commence the Federal Energy Regulatory Commission permitting process. Once the initial funding tranche is secured, the company intends to begin the FERC application.