By CHARLYN FINN - The Calhoun LNG permit was approved Thursday morning by the Federal Energy Regulatory Commission. Calhoun LNG was the last case of the 100 filed on the commission’s agenda Thursday.
“We got the FERC order we hoped for and anticipated,“ said Rafael Garcia, executive vice president of asset development for Gulf Coast LNG Partners, which encompasses Calhoun LNG. “Obviously we are very, very excited.”
The Federal Energy Regulatory Commission unanimously approved four new or expanded natural gas facilities, including the new Calhoun liquefied natural gas terminal (LNG) that will provide more than 2 billion cubic feet (Bcf) of natural gas per day to supply rising U.S. consumer demand, confirmed New Mexico Commissioner Suedeen Kelly, only woman on the commission.
“The Commission granted authorization for a new LNG terminal, pipeline and other related facilities proposed by Calhoun LNG at Point Comfort,” Kelly said. “FERC Commission granted authority to Calhoun LNG to construct and operate an onshore LNG (Liquid Natural Gas) import terminal that will have a send-out capacity of 1 Bcf per day. The company’s affiliate, Point Comfort Pipeline, also is authorized to construct and operate nearly 27.1 miles of new 36-inch diameter pipeline to transport the 1 Bcf of gas per day from the Calhoun LNG terminal to local and interstate markets including Formosa Hydrocarbons Company and Formosa Plastics Company, four intrastate pipelines and five interstate pipelines including Florida Gas Transmission Company, Gulf South Pipeline Company, L.P., Natural Gas Pipeline Company of America, Transcontinental Gas Pipe Line Corp and Tennessee Natural Gas Company.
“The pipeline would end at a connection with Tennessee Gas, approximately three miles southwest of Edna in Jackson County.”
Kelly said the pipeline project is estimated to cost $62.6 million. The Commission ordered the Calhoun LNG and Point Comfort pipeline projects to be completed and ready for service within five years after its authorization order.
Tamera Allen Young of FERC news media relations added that the commission also made its formal order on Thursday, Sept. 20.
The FERC commission approved an order granting authorization under Section 3 of the Natural Gas Act and issuing certificates.
This order grants Calhoun LNG’s proposals to construct and operate an LNG import terminal under section 3 and Point Comfort Pipeline’s proposals to construct pipeline facilities under section 7(c), with appropriate conditions.
Calhoun LNG is a Delaware limited partnership with Calhoun LNG GP, LLC (Calhoun LNG GP) as the general partner and Gulf Coast LNG Partners, L.P. (GCLP) as the limited partner. Calhoun LNG GP is a Delaware limited liability company whose sole member is GCLP. GCLP is a Delaware limited partnership with Gulf Coast LNG Partners, L.P., a Delaware limited liability company, and Haddington LNG GP, LLC, a Delaware limited liability company, as the general partners.
Point Comfort Pipeline is a newly formed pipeline company that does not own any existing pipeline facilities and is not currently engaged in any natural gas operations. It is a Delaware limited partnership with Point Comfort Pipeline Company GP, LLC as the general partner and Haddington Ventures, LLC, a Delaware limited liability company, and Gulf Coast LNG, LLC, a Texas limited liability company, as limited partners.
The Calhoun LNG Project will receive, store, and vaporize foreign-source LNG.
The vaporized LNG will then be sent out through the terminal facilities to the proposed Point Comfort pipeline at a single point within the boundaries of the terminal, for delivery to two industrial customers, as well as to nine intrastate and interstate pipelines,
The order sets forth environmental conditions that will ensure that adverse environmental impacts will be limited.
For LNG facilities, the Director of the OEP (Officer of Energy and Planning) team has delegated authority to take all steps necessary to ensure the protection of life, health, property, and the environment during construction and operation of the project. This authority shall include a stop-work authority and authority to cease operation; and the design and implementation of any additional measures deemed necessary to assure continued compliance with the intent of the conditions of the order.
The order stipulates environmental training for the construction workers.
Prior to accepting ships greater than 140,000 m3 in capacity, Calhoun LNG is required to provide the necessary information to demonstrate that the transient hazard areas identified in the final EIS are applicable. Calhoun LNG must file this information with the Secretary of FERC for review and written approval of the Director of OEP. This information must also be provided to the Coast Guard.
In the event of an incident, the Director of OEP has delegated authority to take whatever steps are necessary to ensure operational reliability and to protect human life, health, property or the environment, including authority to direct the LNG facility to cease operations. Following the initial company notification, the
Commission’s staff would determine the need for an on-site inspection by Commission staff, the timing of an initial incident report (normally within 10 days), and follow-up reports.
With the official posting, Young said Calhoun LNG can start its project. “There may be some reports that have to be submitted to FERC staff prior to construction,” she said. “Calhoun LNG must file an implementation plan. They have to adhere to the FERC order and its conditions. There are a number of environmental resource conditions. Calhoun LNG must file revised, detailed, survey alignment maps/sheets.”
According to Young, 60 days before the start of construction, Calhoun LNG must file implementation plans.
The site selected for construction is leasing property owned by the Port of Port Lavaca-Point Comfort and Calhoun County Navigation District. Earlier Calhoun LNG made memorandums of agreements with other local government entities that would amount to what would have been received if Calhoun LNG could have been taxed.
The plant site will be south of Alcoa Alumina and Chemical complex and not far from Formosa Chemicals’ large petrochemical facilities. In addition, the location is only a few miles south of the primary natural gas pipeline corridor running from South Texas to the Houston Ship Channel, giving the project easy access to multiple markets within the state and nationally.
Plans call for Calhoun LNG to have not only the standard LNG regasification and storage facilities, but also a liquids extraction plant.
Calhoun LNG has signed a Memorandum of Understanding (MOU) with the Consortium of KOGAS, LG International, and Houston based EMS Group. The MOU was announced in March 2007.
They will be the operator for the Calhoun LNG Terminal. The Consortium has also agreed to participate as an equity owner in the Calhoun LNG Terminal.
"We at Seadrift Coke, LLP have learned that Calhoun County EDC is an extremely helpful part of our team. Throughout our transition to new ownership and expansion planning, we have met local professionals, financial leaders, service providers and vendors of all types that have become significant parts of our operations. When the State's motto says, "Texas is Wide Open for Business," we know this is especially true in Calhoun County."
