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SCT&E LNG signs fourth off-take MOU for planned La. export facility

announced April 5it signed a nonbinding memorandum of understanding to sell 2 million tons ofLNG per year from its proposed export facility in Cameron Parish, La., to "a reputableAsian energy company that owns and operates an LNG import terminal and hasplans to construct additional terminals."

"Signingthis MOU provides the capacity commitment required to further advance theengineering and overall project development activities," SCT&E LNGVice President of Energy and Technology Scott Ray said in a statement. "Weare currently finishing up a several-month engineering study and have phasedour execution plan to match capacity commitments."

Thepotential multibillion dollar agreement is the fourth nonbinding MOU theSouthern California Telephone & Energy subsidiary has signed for itsplanned terminal, which would have a liquefaction capacity of about 12 milliontons per annum, or mtpa. The company plans to have the facility begin operatingin 2022. SCT&E signed two off-take MOUs for a total 1.7 mtpa of LNG in2015, and signed a third MOU for 1 mtpa in February, bringing the company'stotal off-take agreements to more than one-third of the facility's overallcapacity.

SCT&Ehas not yet begun the FERC process, but received U.S. Department of Energyauthorization in December 2014 to export up to 12 mtpa of natural gas tocountries the U.S. has a free trade agreement with, and the DOE is reviewingthe company's non-FTA export application. (DOE Office of Fossil Energy No.14-89-LNG, 14-98-LNG)