FERC will drop from its early review process a affiliate'sproposed Mississippi River floating LNG export project in Plaquemines Parish, La.,ending a review that has lasted more than three years.
In an Oct. 11 letter to CE FLNG, FERC said developers hadnot provided any of the draft resource reports required for its staff tocontinue with the environmental review and that the prefiling process willeffectively end Oct. 14. (PF13-11)
"The schedule for filing the information necessary forreview has changed eight times and CE FLNG LLC has failed to meet theseschedules each time," the letter from Office of Energy Projects DirectorAnn Miles said. "In addition, the prefiling record indicates that it hasbeen over two years since CE FLNG LLC engaged any regulatory authorities orpotentially affected stakeholders, which is the intended purpose of theprefiling process."
FERC said the company may apply again for prefiling review ifthe project progresses to a point where CE FLNG could provide the resourcereports and other information required to quantify potential environmentalimpacts.
CE FLNG CEO Sherman Bryant said Oct. 11 that the company intendsto re-apply for prefiling review.
"FERC's ruling is not going to slow down CE FLNG's efforts,"he said over the phone.
In a July 2015 letterasking FERC for a prefiling extension, Bryant wrote "the LNGexport prefiling process is extensive and protracted, and requires companies tospend significant time and effort in order to be extremely thorough so as toprovide the level of predictability required for investors to invest billionson projects."
Bryant added the project had binding agreements to export LNG tocountries with free trade agreements with the U.S. and that it had an agreementfor financing.
The developers had originally anticipated final FERCauthorization for the project in the second quarter of 2017, with operationsbeginning in the fourth quarter of 2020. As proposed, the floating facilitywould have vessels capable of producing as much as 390 Bcf of LNG a year.Bryant said he expected the total LNG export capacity of 8.2 million tonnes perannum to be contracted. CE FLNG planned to use tugboats to maneuver the FLNGsand carriers.
The project would include a pipeline to be constructed by Cambridge Energy PipelineLLC that would move natural gas from delivery points on interstate pipelines tothe LNG terminal.