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Sempra LNG terminal plan clears FERC environmental review

05.05.2014  | 

Sempra's Energy plan to export LNG won't cause major environmental damage said a U.S. regulator. If approved, Cameron would be the second export terminal to pass the FERC’s review.

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By BRIAN WINGFEILD

Bloomberg

Sempra Energy plan to export liquefied natural gas won’t cause major environmental damage, a U.S. regulator said, adding support for lawmakers seeking to speed fuel shipments and cut Russia’s grip on European supplies.

The staff of the U.S. Federal Energy Regulatory Commission found Sempra’s proposed Cameron LNG export facility in western Louisiana “would not result in significant impacts” to the environment, according to an agency notice today. However, it said, “some long-term and permanent environmental impacts would occur.” The commission is set to issue a final decision on the project by late July.

If approved, Cameron would be the second export terminal to pass the FERC’s review. Cheniere Energy Inc. (LNG)’s Sabine Pass project won approval in April 2012, after clearing a similar environmental review.

Democrats and Republicans in Congress have pushed to expedite approval of liquefied natural gas export terminals to send the fuel to Europe and reduce its reliance on Russia’s energy supplies after it annexed Ukraine’s Crimea region last month. In addition to the FERC-led environmental review, the projects need Energy Department approval to ship to nations without a free-trade agreement with the U.S.

The Cameron project, which may cost as much as $10 billion, won Energy Department backing in February. It’s scheduled to begin liquefying gas in late 2017 and be fully operational by 2018, according to San Diego-based Sempra.

Joint Ownership

The company owns 50.2% of the facility, which will be able to export 1.7 billion cubic feet of the fuel per day. France’s GDF Suez and Japan’s Sumitomo Mitsui Financial. each own a 16.6% stake. A joint venture of Tokyo-based Mitsubishi and Nippon Yusen owns the remaining 16.6%.

The 28-nation European Union gets about a third of its natural gas from Russia through a web of pipelines that cross nations including Ukraine, according to the Congressional Research Service.

Senate Energy and Natural Resources Committee Chairman Mary Landrieu this month urged the FERC to approve the Cameron project, citing the need for job creation in her state and the need for the U.S. compete with suppliers from other nations.

The Energy Department has approved seven applications to export the fuel, is reviewing 24 with at least 12 projects still to be reviewed.

Shipments from most terminals probably won’t begin until “pretty late in the decade,” Energy Secretary Ernest Moniz said at an April 23 conference in Washington. The Cheniere project, also in Louisiana, is scheduled to begin exporting fuel in late 2015, according to the company.



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