American Oil and Gas Reporter - May 2015 - 102

SpecialReport: Gas Compression Technology
approval for selling LNG to countries
that have free trade agreements with the
United States. Proposed sales to nonFTA countries require special approval.
At present, there are about 40 applications
for export permits pending at DOE.
The next phase in project approval is
authorization of the facilities themselves
by the Federal Energy Regulatory Commission. Project owners must file a plan
with the commission that includes the list
of customers committed to the project,
an environmental impact study, the acreage

plot and/or route, rates to be charged, and
operational standards, among other things.
At present, only nine proposed LNG
export terminals representing about 13
Bcf/d of capacity have received FERC
approval (Figure 3). Five of those are
under some phase of actual construction,
comprising 9.0 Bcf/d. Not surprisingly,
these are existing LNG import facilities.
Another interesting development related
to U.S. LNG exports is the reconfiguring
of pipelines to accommodate moving
shale gas in the Northeast to LNG projects

FIGURE 3
Approved LNG Import/Export Terminals

in the Southeast and Gulf Coast. Numerous
gas transmission pipelines have announced
projects designed specifically to ship
Marcellus and Utica shale gas to points
south and southeast of those basins. Producer interest in new market outlets has
prompted several of them to commit to
long-term transport agreements that, in
essence, finance the modifications and/or
expansions of pipelines serving the Northeast that are capable of providing this
backhaul service.
U.S. gas producers and builders of
LNG export terminals may face tough
market conditions as they enter the global
market later this year, especially if oil
prices remain low. The fact is, "surplus"
natural gas will be challenged to satisfy
the needs of the projects already approved,
let alone those pending. Supply issues
aside, the influx of more LNG from the
United States into the global market may
further dampen prices, especially in light
of increasing supplies from Australia and
East Africa. Regional price spreads sufficient to cover the costs of liquefaction,
transportation and re-gasification are dependent on a global oil price recovery.Ì

8

4,9

7

5 6
1

3

TOM
SENG

2

U.S.Jurisdiction
FERC
MARAD/USCG

Import Terminals

Export Terminals

Not Under Construction
1. Gulf of Mexico: 1.0 Bcf/d (Main Pass
McMoran Exp.)
2. Offshore Florida: 1.2 Bcf/d (Hoëgh
LNG - Port Dolphin Energy)
3. Gulf of Mexico: 1.4 Bcf/d (TORP
Technology - Bienville LNG)
4. Corpus Christi, Tx.: 0.4 Bcf/d
(Cheniere - Corpus Christi LNG)
(CP12-507)

Under Construction
5. Sabine, La.: 2.76 Bcf/d (Cheniere/Sabine
Pass LNG)
(CP11-72 & CP14-12)
6. Hackberry, La.: 1.7 Bcf/d (Sempra Cameron LNG) (CP13-25)
7. Freeport, Tx.: 1.8 Bcf/d (Freeport LNG
Dev/Freeport LNG Expansion/FLNG
Liquefaction) (CP12-509
8. Cove Point, M.D.: 0.82 Bcf/d (Dominion Cove Point LNG) (CP13-113)
9. Corpus Christi, Tx.: 2.14 Bcf/d
(Cheniere - Corpus Christi LNG)
(CP12-507)

Source: Federal Energy Regulatory Commission

102 THE AMERICAN OIL & GAS REPORTER

Tom Seng is an assistant professor
of energy business in the master of
energy business program at the University of Tulsa's Collins College of
Business, School of Energy Economics,
Policy & Commerce. Seng has more
than 30 years of experience in the
natural gas and natural gas liquids industry, including physical and financial
commodity trading, risk management
and hedging, pipeline and midstream
operations, transportation and storage
capacity acquisition, and marketing. He
also has an extensive background in
risk control and has worked for four
natural gas pipeline and storage companies. Seng holds a B.S. in political
science from State University of New
York and an M.B.A. in international oil
and gas management from Robert Gordon University in Aberdeen, Scotland.
American Oil and Gas Reporter - May 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - May 2015
