Houston — Project near two interstate pipelines
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Developers have letters of intent for one-third of proposed capacity
The recently formed Pointe LNG on Friday asked the US Federal Energy Regulatory Commission for permission to enter the pre-filing process for an LNG liquefaction and export facility on the eastern banks of the Mississippi River in southern Louisiana.
Pointe LNG is proposing to build the project on a site comprising about 600 acres of leased property with more than 6,500 feet of river frontage. The project, with a proposed in-service date of the second quarter of 2025, would consist of three LNG liquefaction trains, each with a nominal capacity of 2 million mt/year, and a marine loading berth with three loading arms and one vapor arm for loading LNG tankers.
In addition, the project calls for the construction of two 36-inch-diameter gas supply laterals to interconnect with nearby existing pipeline infrastructure.
One 3.2-mile pipeline is proposed to be built to enter the facility from the north, connecting with High Point Gas Transmission's system. The other 3.4-mile pipeline would enter the facility from the south and connect with Tennessee Gas Pipeline's system.
The proposed project site includes a 250-acre area where Parallax Energy, a company led by LNG veteran Martin Houston, had proposed in 2015 to build the Live Oak LNG project, Jim Lindsay, co-founder of Pointe LNG, said in an interview Monday.
Parallax is currently involved in litigation with LNG developer Cheniere Energy, but the proposed Pointe LNG site is not encumbered by that litigation, Lindsay said. Parallax and Cheniere did not respond to requests for comment.
ADVANTAGEOUS PROJECT LOCATION
The project's location provides a number of advantages as the site of an LNG terminal. High Point and TGP combined can provide up to 2 Bcf/d of firm transportation capacity for gas to be delivered to the LNG terminal, Lindsay said.
"Unlike facilities west of the Mississippi, this facility needs just six miles of 36-inch pipe, and we have firm access firm all the way to the Haynesville," he said.
"Also, we have access to Marcellus producers that executed expansion transportation contracts with Tennessee [Gas Pipeline] wherein they come south down the Tennessee 500 leg," Lindsay said
In addition, at the project site near the mouth of the Mississippi River in lower Plaquemines Parish, the water depth is 65 feet, sufficient to accommodate large LNG tankers at the project's dock, he said.
The project developers are in talks with potential LNG customers and have secured "non-binding letters of intent from certain Asian entities" for 2 million mt/year of the project's capacity, Lindsay said.
The developers are also in talks with private investors and potential LNG customers to secure financing to build the project, which is estimated to cost around $3.2 billion. -- Jim Magill, firstname.lastname@example.org
-- Edited by Annie Siebert, email@example.com