U.S. EXPORTS Stalled Louisiana LNG Project …...2 days ago · Louisiana in a broader dispute that involved other parties, including a predecessor to rival Tellurian Inc. In late

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costs down, but the revamp comes at a time when the world is awash in cheap gas supplies. The glut has only been exacerbated by the Covid-19 pandemic, which has reduced demand for the fuel.

The market has also made it more difficult for second wave U.S. LNG export projects to secure financing and long-term supply agree-ments, given abundant supplies, travel restrictions imposed under the virus outbreak and economic uncertainty. As a result, a number of projects along the Gulf Coast and elsewhere that are further along in the development process have been delayed or sold.

THURSDAY, MAY 21, 2020 - VOL. 1, NO. 153

U.S. EXPORTSStalled Louisiana LNG Project Revived After Founders Take Reins Again

The team behind a mid-scale liquefied natural gas (LNG) ex-port project in Plaquemines Parish, LA, which failed to gain traction years ago is trying to advance again with new investment capital and offtake agreements.

Co-founders Tom Burgess and Jim Lindsay, who had previously secured funding in 2014 for Louisiana LNG along 600 acres of the Mississippi River’s east bank, said they now need about $4 billion to develop the project, renamed Pointe LNG.

Pointe LNG would consist of three liquefaction trains, each able to produce 2 million metric tons/year (mmty). It would also include two gas supply pipeline laterals with seven miles of 36-inch diameter line to tap the Tennessee Gas Pipeline and Southern Natural Gas Pipeline systems.

The potential Pointe has more than 9,200 feet of riverfront, which could eventually enable an expansion from 6-12 mmty, in addition to a deepwater port with a depth of 50 feet-plus to accom-modate the world’s largest LNG vessels.

The company has enlisted Whitehall & Co. as its financial ad-viser and said it expects to close on the initial $56 million of develop-ment capital by 3Q2020. A final investment decision is targeted for mid-2022, and commercial operation is scheduled for 2026.

Pointe’s co-founders said the site’s features would help keep

...cont' pg. 4

FERC Greenlighting Alaska LNG Export Project Called ‘Capstone Moment’ 4

Daily Rundown• Team behind Pointe LNG is in search of financing

and offtake• Louisiana export project has been revived at a

tough time when others have been delayed• FERC clears Alaska LNG for exports, but hurdles

remain for the massive project

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THURSDAY, MAY 21, 2020

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...cont' pg. 6

See NGI’s LNG Glossary Here

. . . from U.S. EXPORTS - Stalled Louisiana LNG Project Revived, pg. 1

Pointe stalled in 2015 when Parallax Enterprises LLC ac-quired predecessor Louisiana LNG Energy LLC. Parallax later partnered with the largest U.S. gas exporter, Cheniere Energy Inc., to advance the facility, but the relationship soured over projects in Louisiana in a broader dispute that involved other parties, including a predecessor to rival Tellurian Inc.

In late 2016, FERC terminated the project’s pre-filing review because of inaction. The U.S. Department of Energy subsequently rescinded Louisiana LNG’s authorization to export natural gas.

Pointe said after Cheniere and Parallax were unable to complete development, the company was able to return to the site and resume development as Pointe LNG LLC. The Federal Energy Regulatory Commission cleared the company to again start the pre-filing process in September 2018. n

REGULATORYFERC Greenlighting Alaska LNG Export Project Called ‘Capstone Moment’

FERC has authorized Alaska Gasline Development Corp.’s (AGDC) plans to liquefy and export natural gas produced on Alaska’s North Slope from a plant at Nikiski.

The liquefied natural gas (LNG) project would consist of liquefaction facilities on the Kenai Peninsula designed to pro-duce up to 20 million metric tons/year (mmty) for export, along with an 807-mile-long, 42-inch-diameter pipeline capable of transporting up to 3.9 Bcf/d to the liquefaction facilities, a gas treatment plant in Prudhoe Bay and two additional natural gas pipelines connecting production units to the gas treatment plant [CP17-178].

“This is a capstone moment for Alaska LNG at the federal





...cont' pg. 7

level, and it is the result of a robust and comprehensive review process,” said Lisa Murkowski (R-AK), chairman of the Senate Energy and Natural Resources Committee. “A final FERC certifi-cate and order are immensely valuable assets for the project and the state of Alaska.”

The Federal Energy Regulatory Commission approved the autho-rization motion by a 3-1 vote Thursday, with Commissioner Richard Glick voting against. The chances of LNG projects reaching fruition “are very slim” because of economic conditions, he said.



...cont' pg. 7

“Although the Natural Gas Act does not require the Commission to inquire into a proposed prospect’s financial prospects, it is impos-sible to ignore the fact that the economic fallout from the covid-19 pandemic has made a very difficult market for LNG exports far more challenging,” Glick said.

The Department of Energy previously authorized the project to export 20 mmty to nations with which the United States has free trade agreements (FTA), and also granted conditional authorization for exporting 20 mmty to non-FTA nations.

Alaska LNG has faced its share of hurdles. Last week it was reported that the $43.4 billion project is in search of a new sponsor. The AGDC board reportedly hopes someone else can take over the project if an economic analysis currently under-way finds it is still economically feasible. Without another sponsor the state corporation would likely sell the project’s assets, such as permits and engineering work, according to published reports.

Last year, state-owned AGDC signed an agreement with BP plc and ExxonMobil Corp. to collaborate on ways to advance the project, including identifying ways to improve the project›s competitiveness and secure FERC authorization to build the project. n



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NGI’s LNG Insight

Thursday, May 21, 2020

Volume 1, No. 153

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U.S. EXPORTS Stalled Louisiana LNG Project …...2 days ago · Louisiana in a broader dispute that involved other parties, including a predecessor to rival Tellurian Inc. In late