FERC Approves Multiple LNG Receiving and Re-Gasification Projects on the Gulf and Atlantic Coasts Representing 8.2 Bcf in New Gas Supplies

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Researched by Industrial Info Resources (Sugar Land, Texas). On Thursday, June 15, 2006, the FERC approved five LNG receiving and re-gasification projects totaling 8.2 billion cubic feet per day (Bcf/d) of natural gas capacity and several billion dollars in potential capital spending. Three of the projects are new construction schemes planned for the Gulf Coast. One new LNG terminal and an expansion to an existing LNG terminal were approved for the Atlantic Coast.

On the Gulf Coast, the FERC approved the second phase of Cheniere Energy’s (AMEX:LNG)(Houston, Texas) Sabine Pass LNG terminal located in Cameron, Louisiana. The approval increases the total capacity of the LNG terminal to 4 Bcf/d from the present phase I capacity of 2.6 Bcf/d currently under construction. Cheniere Energy also gained approval for its Creole Trail LNG receiving terminal and pipeline project. The Creole Trail terminal will have re-gasification capacity of 3.3 Bcf/d and will connect to the pipeline grid through a new 117 mile natural gas pipeline project. Also on the Gulf Coast, Sempra Energy received FERC approval for its 1.5 Bcf/d Port Arthur, Texas LNG terminal.

On the Atlantic Coast, Dominion Resources Incorporated (NYSE:D) (Richmond, Virginia) () received approval for its Cove Point LNG Terminal expansion. The expansion will increase the existing 1 Bcf/d capacity to 1.8 Bcf/d when completed. The Dominion expansion will also involve 160 miles of new pipeline and the construction of two new compressor stations and modifications to another seven compressor stations and storage facilities.

BP plc (NYSE:BP)(London, England)received approval for its Crown Landing LNG terminal to be located in Logan Township, New Jersey. The new terminal will have an initial capacity of 1.2 Bcf/d and includes a minor pipeline project to connect into the natural gas pipeline grid. A portion of that pipeline is currently involved in a court dispute.

All five of the LNG terminals and associated pipelines should enter service during the 2008 to 2010 time frame. If these five LNG projects are included in the next series that go into construction then the total number of new and expansion projects involving LNG terminals in North America will total fourteen and capital expenditures for each project will average over $500 million.

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