U.S. FERC Approves Construction of Freeport LNG Export Project

U.S. FERC Approves Construction of Freeport LNG Export Project

U.S. federal regulators on Wednesday approved construction of Freeport LNG Development LP’s liquefied natural gas export project in Texas…read full story here.

Key Points:

  • Freeport is the third U.S. LNG export project to get the green light to begin construction from the Federal Energy Regulatory Commission. (FERC order: http://1.usa.gov/1ocKyca)
  • The planned project would have the capacity to export up to 1.8 billion cubic feet a day of LNG once operational.
  • FERC approved construction of Sempra Energy’s Cameron LNG export terminal in Louisiana last month.
  • Companies need approval from both:
    • Department of Energy, which determines whether the proposed exports would be in the public interest, and
    • FERC, which assesses safety and environmental effects of the projects’ construction and operation.
  • Freeport can now receive a final export permit from the Energy Department, which would allow the facility to export gas to all countries. The department issued conditional permits to Freeport last year, contingent upon the facility earning a license from FERC.
  • The next LNG export project likely to receive approval from FERC is Dominion Resources Inc’s Cove Point facility in Maryland.