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Sempra unit applies for pipeline to supply proposed La. LNG terminal

Sempra Energy's Port Arthur Pipeline LLC has formally applied for federal authorization of a natural gas pipeline project that would carry 2 Bcf/d to the proposed Port Arthur LNG liquefaction and export terminal.

The pipeline company on Oct. 16 submitted an abbreviated application to the Federal Energy Regulatory Commission for its Louisiana Connector project. It would include a 131-mile, 42-inch-diameter pipeline, a new compressor station and facilities to connect the project to interstate and intrastate pipeline infrastructure. Port Arthur Pipeline told FERC that it has entered into precedent agreements with its Sempra affiliate Port Arthur LNG LLC for 100% of the capacity on the line. (FERC docket CP18-7)

"By providing the feed gas supply to the Liquefaction Project, the Louisiana Connector Project will support realization of the public benefits associated with the liquefaction project," Port Arthur Pipeline said in its application. "LNG exports will increasingly diversify the global supply of energy resources, which will support the geopolitical security interests of the U.S. by providing energy supply alternatives to its allies. The export of domestically produced LNG will also promote liberalization of global energy markets."

Port Arthur Pipeline in February asked FERC to begin the early review process for the pipeline project, which would interconnect with gas pipelines in Allen, Beauregard, Calcasieu and Cameron parishes in Louisiana and Jefferson County, Texas. (FERC docket PF17-5)

Port Arthur LNG applied in November 2016 for the LNG export project, which would be Sempra's second U.S. LNG export terminal. The Cameron liquefaction and export facility is under construction in Hackberry, La., but has faced delays amid labor complications and weather challenges.

The Port Arthur LNG terminal would include two liquefaction trains, each capable of producing about 6.7 million tonnes per year. The developers said they expect the first train to enter service in the first quarter of 2023, with the second train coming online in the third quarter of that year. The export facility will also include three LNG storage tanks, two LNG vessel marine berths and combustion turbine generators for electric power. (FERC docket CP17-20)

Sempra in June became one of a handful of U.S. LNG export developers to sign deals with Korea Gas Corp. to begin negotiations for more LNG for South Korea. In addition to a possible contract for LNG from the Port Arthur terminal, the memorandum of understanding covers engineering and construction work as well as feed gas sourcing and equity participation in the project.