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Researched by Industrial Info Resources (Sugar Land, Texas)--Liquefied natural gas (LNG) projects in the U.S. continue making headway through important government approvals. Late last week, the U.S. Department of Energy (DoE) and Federal Energy Regulatory Commission (FERC) helped facilities in Oregon and Texas gain ground through the granting of important approvals for exports and construction.
The DoE granted Oregon LNG (Vancouver, Washington), which is a subsidiary of Leucadia National Corporation (NYSE:LUK) (New York, New York), permission to export up to 1.25 billion cubic feet per day (Bcf/d) of LNG to countries without a free trade agreement (FTA) with the U.S. The facility will be located near Warrenton, Oregon, and this West Coast location provides very direct access to lucrative LNG markets in East Asia, such as Japan and South Korea. The company still needs permission from FERC to site, construct and operate the facility.
View Plant Profile - 3064323
View Project Report - 300079947 300110838
Oregon LNG could possibly be one of the last U.S. LNG production facilities to receive export permission from the DoE based on the agency's current application approval process, which is performed in the order the applications are received. Proposed changes call for DoE approval only for facilities that have received environmental approval from FERC. For additional information, see June 2, 2014, article - Proposed Changes in U.S. LNG Export Approvals Have Uncertain Consequences.
Also last week, FERC granted construction and operating permission to Freeport LNG's three-train facility on Quintana Island in Texas. The facility is the third facility to receive FERC permission, accompanied by Cheniere Energy's (NYSE:LNG) (Houston, Texas) Sabine Pass plant in Louisiana and Sempra Energy's (NYSE:SRE) (San Diego, California) Cameron LNG project, also in Louisiana.
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The DoE granted Freeport permission to export to non-FTA countries in May and November last year, resulting in a combined export permission of 1.8 Bcf/d. An initial 1.4 Bcf/d export permission was granted in May, followed by another 0.4 Bcf/d in November, for which the company expressed disappointment, as it had applied to export an additional 1.4 Bcf/d.
Those with an early start in the construction and export process definitely stand to gain the most from the push and pull of the global LNG market. As an increasing number of LNG facilities are brought online and Japan moves closer to restarting some of its nuclear reactors, companies are starting to revise downward their initial estimates on return on investment for the construction of these multibillion-dollar facilities. Last week, Houston-based Apache Corporation (NYSE:APA) announced that it would sell its stakes in the Wheatstone LNG project in Australia and the Kitimat LNG project in Canada, both of which are joint ventures with Chevron Corporation (NYSE:CVX) (San Ramon, California).
View Plant Profile - 1064403 1080988
View Project Report - 57000945 300030748 86000905
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The DoE granted Oregon LNG (Vancouver, Washington), which is a subsidiary of Leucadia National Corporation (NYSE:LUK) (New York, New York), permission to export up to 1.25 billion cubic feet per day (Bcf/d) of LNG to countries without a free trade agreement (FTA) with the U.S. The facility will be located near Warrenton, Oregon, and this West Coast location provides very direct access to lucrative LNG markets in East Asia, such as Japan and South Korea. The company still needs permission from FERC to site, construct and operate the facility.
View Plant Profile - 3064323
View Project Report - 300079947 300110838
Oregon LNG could possibly be one of the last U.S. LNG production facilities to receive export permission from the DoE based on the agency's current application approval process, which is performed in the order the applications are received. Proposed changes call for DoE approval only for facilities that have received environmental approval from FERC. For additional information, see June 2, 2014, article - Proposed Changes in U.S. LNG Export Approvals Have Uncertain Consequences.
Also last week, FERC granted construction and operating permission to Freeport LNG's three-train facility on Quintana Island in Texas. The facility is the third facility to receive FERC permission, accompanied by Cheniere Energy's (NYSE:LNG) (Houston, Texas) Sabine Pass plant in Louisiana and Sempra Energy's (NYSE:SRE) (San Diego, California) Cameron LNG project, also in Louisiana.
View Plant Profile - 3016690
View Project Report - 300023056 300023058 300023062
The DoE granted Freeport permission to export to non-FTA countries in May and November last year, resulting in a combined export permission of 1.8 Bcf/d. An initial 1.4 Bcf/d export permission was granted in May, followed by another 0.4 Bcf/d in November, for which the company expressed disappointment, as it had applied to export an additional 1.4 Bcf/d.
Those with an early start in the construction and export process definitely stand to gain the most from the push and pull of the global LNG market. As an increasing number of LNG facilities are brought online and Japan moves closer to restarting some of its nuclear reactors, companies are starting to revise downward their initial estimates on return on investment for the construction of these multibillion-dollar facilities. Last week, Houston-based Apache Corporation (NYSE:APA) announced that it would sell its stakes in the Wheatstone LNG project in Australia and the Kitimat LNG project in Canada, both of which are joint ventures with Chevron Corporation (NYSE:CVX) (San Ramon, California).
View Plant Profile - 1064403 1080988
View Project Report - 57000945 300030748 86000905
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
