Six LNG Import Terminals Under Construction in North America

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Researched by Industrial Info Resources (Sugar Land, Texas). Currently, there are six new LNG terminals under construction in North America. The combined regasification capacity of these new LNG terminals under construction is approximately 10.85 billion cubic feet per day (Bcf/d) of new capacity. Three of these new LNG terminals are located in the U.S. on the Gulf Coast, two are located in Mexico, and one is located on the Atlantic Coast of Canada. Four of these new facilities have proposed phase II expansion plans that would add an additional 4.6 Bcf/d of regasification capacity. The 10.85 Bcf/d of new capacity represents approximately 18% of what the U.S. alone consumes, not to mention what Canada and Mexico consume on a daily basis. When the phase II proposals are added, the total increases 25%.

Click on the image at right to view a map showing location of LNG terminals under construction.

The six new LNG terminals presently under construction are owned by Sempra Energy (NYSE:SRE) (San Diego, California), Irving Oil (Saint John, New Brunswick), Royal Dutch Shell plc (NYSE:RDS-A) (The Hague, Netherlands), Cheniere Energy (AMEX:LNG) (Houston, Texas) (and Freeport LNG Development LP (Houston, Texas).

Sempra Energy currently has one LNG terminal at Costal Azul Mexico and a second terminal under construction at Cameron, Louisiana. The terminal in Coastal Azul will have a regasification capacity of 1 Bcf/d when complete in the first quarter of 2008 at a capital cost of approximately $800 million. The Cameron facility will have a phase I capacity of 1.5 Bcf/d when complete in the first quarter of 2008 at a capital cost of over $700 million. Aker Kvaerner & IH Heavy Industries are the main contractors for the Cameron terminal. The proposed Phase II project for Cameron could increase the regasification capacity by a further 1.15 Bcf/d and could come online in late 2010.

Irving Oil, Limited (Saint John, New Brunswick) has retained the services of SNC Lavalin (Montreal, Quebec) & Saipem Spa (Milan, Italy) for the engineering and construction for its Canaport LNG Terminal located on the Atlantic coast of New Brunswick. When complete in late 2008, the new terminal will have a receiving capacity of 1 Bcf/d at a cost of approximately $750 million. Some of the new capacity from the terminal will be used to supply the Maritimes Pipeline system, which has been searching for new capacity for its Phase IV expansion since 2001.

Royal Dutch Shell’s Altamira LNG terminal located on the Gulf Coast of Mexico is the furthest along with construction and is slated to be complete in July or August of 2006. The new terminal will have an average natural gas send out capacity of 500 million cubic feet per day (mmcfd) with a peak capacity of 760 mmcfd. ICA Fluor Daniel is the main contractor for the Altamira project. There is a possible phase II with a proposed capacity addition of 1.3 Bcf/d that could begin construction approximately two years after phase I is complete. Phase II would include the construction of additional vaporization capacity and an additional 160,000 cubic meter LNG storage tank.

Freeport LNG Development LP is currently in the midst of constructing phase I of its Freeport LNG terminal, located near Freeport, Texas. The phase I development will have a capacity of 1.5 Bcf/d when complete in early 2008. Technip (Paris, France) was awarded the lead engineering contract for the project. A proposed phase II of the project will increase the send out capacity by a further 2.5 Bcf/d and could be complete by 2009.

Cheniere Energy is currently constructing phase I of the Sabine Pass LNG terminal located on the Louisiana side of the Sabine River. Bechtel’s Houston, Texas office and Matrix (Tulsa, Oklahoma), among others, are heading the construction activities for the 2.6 Bcf/d project, which should be complete in early 2008. The estimated capital cost of the phase I facility is over $820 million. The Sabine Pass facility has a planned phase II project, which if constructed will add an additional 1.4 Bcf/d and will have a completion date sometime in 2010.

In the coming months, two more LNG receiving terminals could move from design to construction on the Gulf Coast. Cheniere Energy has signed a $50 million site preparation contract with La Quinta for its planned Corpus Christi LNG terminal located in Corpus Christi, Texas. The project is a single-phase project with a capacity of 2.6 Bcf/d. The lead contractors for the project are AMEC Paragon (Houston, Texas) and Zachry Construction (San Antonio, Texas). The second terminal proposal is Occidental’s Ingleside Texas LNG terminal. The proposed terminal will have a capacity of 1 Bcf/d and construction on the project could begin as early as July of 2006. Black & Veatch (Overland Park, Kansas) is the lead engineer for the project. Completion for the project is slated for 2009.

The start of construction of these LNG terminals represents a historic milestone in the development of a wave of new mega-project LNG terminals in North America. Industrial Info is currently tracking 67 LNG projects, including new terminals, and expansions of existing facilities in North America. For details on Industrial Info’s LNG Database contact Member Center at 1-800-762-3361.

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