Asia, Cameron LNG, Engie, Europe, export economy, Fracking, France, GDF-Suez, Japan, LNG, LNG Exports, Louisiana, Mitsubishi, Mitsui, Natural Gas exports, NYK, renewable energy, Total, US DOE, US Natural gas exports
This apparently isn’t due to Covid-19 but rather to a pre-existing glut in natural gas, as well as a change in French partner from Engie (GDF-Suez) to France’s Total.
“Request for Extension of Commencement Deadline for Non-Free Trade Agreement Authorization: Cameron LNG, LLC“, ID: DOE_FRDOC_0001-3975 Due Apr 30 2020, at 11:59 PM ET Comment here: https://www.regulations.gov/document?D=DOE_FRDOC_0001-3975
Cameron LNG (Louisiana) ownership: California based Sempra LNG, France’s Total, and Japanese Mitsui, Mitsubishi Corporation, and Japanese NYK (Nippon Yusen Kabushiki Kaisha) which is a major world shipping-logistics company, operating 846 major ocean vessels, along with planes, trains, and trucks (28 LNG carriers). See: https://archive.li/LbVAR
THEY DON’T NEED AN EXTENSION! THEY DON’T NEED TO EXPORT US (FRACKED) GAS TO EUROPE AND ASIA OR ANYWHERE ELSE! The US, Europe, and Asia need to go solar and/or other renewables. In fact, former partner Engie has invested in renewables. The US was stolen from the American Indians simply to be destroyed to export energy to foreign lands? How does this make sense? We can expect sinkholes/other instability over time due to fracking, along with ingrowth of radiation, which will increasingly contaminate the groundwater: https://miningawareness.wordpress.com/2015/07/27/fracking-fluids-become-more-radioactive-over-time/
“Request for Extension of Commencement Deadline for Non-Free Trade Agreement Authorization: Cameron LNG, LLC,
The Office of Fossil Energy (FE) of the Department of Energy (DOE) gives notice (Notice) of receipt of a request (Request), filed on March 6, 2020, by Cameron LNG, LLC (Cameron LNG). Cameron LNG seeks to amend its existing authorization to export domestically produced liquefied natural gas (LNG) to non-free trade agreement countries set forth in DOE/FE Order No. 3846. Specifically, Cameron LNG requests an extension to commence its export operations. Cameron LNG filed the Request under section 3 of the Natural Gas Act (NGA). Protests, motions to intervene, notices of intervention, and written comments are invited…
On July 15, 2016, in Order No. 3846, DOE/FE authorized Cameron LNG to export domestically produced LNG in a volume equivalent to 515 billion cubic per year (Bcf/yr) of natural gas. (1) DOE/FE authorized Cameron LNG to export this LNG by vessel from Trains 4 and 5 to be constructed at the existing Cameron LNG Terminal, located in Cameron and Calcasieu Parishes, Louisiana (the Expansion Project), to any country with which the United States has not entered into a free trade agreement (FTA) requiring national treatment for trade in natural gas, and with which trade is not prohibited by U.S. law or policy (non-FTA countries) for a 20-year term. As relevant here, Order No. 3846 requires Cameron LNG to “commence export operations using the planned liquefaction facilities no later than seven years from the date of issuance of this Order”—i.e., by July 15, 2023. (2) In this Request, Cameron LNG asks DOE/FE to extend this deadline until May 5, 2026. (3)
We take administrative notice that, on March 25, 2020, the Federal Energy Regulatory Commission (FERC) issued an order granting Cameron LNG’s request for an extension of time until May 5, 2024, to construct and operate the Expansion Project. Additionally, in support of this Request, Cameron LNG identifies the actions it has taken to proceed with the construction and operation of the Expansion Project to date. Cameron LNG states that, due to circumstances that have affected the timing of the project, it is unable to complete construction and place the export facilities into service by the existing deadline. (4) Accordingly, Cameron LNG requests an extension until May 5, 2026, to commence commercial LNG exports from the Expansion Project. Additional details can be found in the Request, posted on the DOE/FE website at: https://www.energy.gov/sites/prod/files/2020/03/f72/Cameron%20LNG%20-%20Request%20for%20Extensions%20of%20Time%20%283.6.20%29.pdf
In reviewing Cameron LNG’s Request, DOE will consider any issues required by law or policy. DOE will consider domestic need for the natural gas, as well as any other issues determined to be appropriate, including whether the arrangement is consistent with DOE’s policy of promoting competition in the marketplace by allowing commercial parties to freely negotiate their own trade arrangements. As part of this analysis, DOE will consider the study entitled, Macroeconomic Outcomes of Market Determined Levels of U.S. LNG Exports (2018 LNG Export Study), (5) and DOE/FE’s response to public comments received on that Study. (6)
Additionally, DOE will consider the following environmental documents:
* Addendum to Environmental Review Documents Concerning Exports of Natural Gas From the United States, 79 FR 48132 (Aug. 15, 2014); (7)
* Life Cycle Greenhouse Gas Perspective on Exporting Liquefied Natural Gas From the United States, 79 FR 32260 (June 4, 2014); (8) and
* Life Cycle Greenhouse Gas Perspective on Exporting Liquefied Natural Gas From the United States: 2019 Update, 84 FR 49278 (Sept. 19, 2019), and DOE/FE’s response to public comments received on that study. (9)
Parties that may oppose this Request should address these issues and documents in their comments and/or protests, as well as other issues deemed relevant to the Request.
The National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et seq., requires DOE to give appropriate consideration to the environmental effects of its proposed decisions. No final decision will be issued in this proceeding until DOE has met its environmental responsibilities….
(1) Cameron LNG, LLC, DOE/FE Order No. 3846, FE Docket No. 15-90-LNG, Opinion and Order Granting Long-Term, Multi-Contract Authorization to Export Liquefied Natural Gas by Vessel from Trains 4 and 5 of the Cameron LNG Terminal Located in Cameron and Calcasieu Parishes, Louisiana, to Non-Free Trade Agreement Nations (July 15, 2016).
(2) See id. at 132 (Ordering Para. D).
(3) Cameron LNG, LLC, Request for Extension of Time Under Order Nos. 3680 and 3846, FE Docket Nos. 15-36-LNG and 15-90-LNG, at 2 (Mar. 6, 2020) [hereinafter Request]. The Request also applies to Cameron LNG’s existing FTA order in FE Docket No. 15-36-LNG, but DOE/FE will address that portion of the Request separately pursuant to NGA section 3(c), 15 U.S.C. 717b(c).
(4) Request at 3-4.
(5) See NERA Economic Consulting, Macroeconomic Outcomes of Market Determined Levels of U.S. LNG Exports (June 7, 2018), available at: https://www.energy.gov/sites/prod/files/2018/06/f52/Macroeconomic%20LNG%20Export%20Study%202018.pdf.
(6) U.S. Dep’t of Energy, Study on Macroeconomic Outcomes of LNG Exports: Response to Comments Received on Study; Notice of Response to Comments, 83 FR 67251 (Dec. 28, 2018).
(7) The Addendum and related documents are available at: http://energy.gov/fe/draft-addendum-environmental-review-documents-concerning-exports-natural-gas-united-states.
(8) The 2014 Life Cycle Greenhouse Gas Report is available at: http://energy.gov/fe/life-cycle-greenhouse-gas-perspective-exporting-liquefied-natural-gas-united-states.
(9) U.S. Dep’t of Energy, Life Cycle Greenhouse Gas Perspective on Exporting Liquefied Natural Gas From the United States: 2019 Update—Response to Comments, 85 FR 72 (Jan. 2, 2020). The 2019 Update and related documents are available at“: https://fossil.energy.gov/app/docketindex/docket/index/21.
OUR ADDITIONAL NOTES:
Explains that France’s Total took France’s Engie’s place and that there was already a glut in LNG natural gas leading to low prices in January:
“Cameron LNG Seeks Extension for Expansion After Engie’s Exit“, by Jamison Cocklin January 29, 2020, Natural Gas Intelligence http://web.archive.org/web/20200404095405/https://www.naturalgasintel.com/articles/120891-cameron-lng-seeks-extension-for-expansion-after-engies-exit
“In July 2018, TOTAL S.A. (“TOTAL”) acquired the interest of Engie, S.A. (“Engie”) in the JV. In November 2018, Sempra Energy and TOTAL entered into a memorandum of understanding (“MOU”) that provides, among other things, a framework for cooperation for the continued potential development of the Expansion Project and potential offtake of the LNG produced from the project. Sempra Energy entered into a similar MOU with another of the JV Partners, Mitsui & Co., in October 2019. Following its assumption of Engie’s interest in the JV, TOTAL has been reviewing the project and the JV Partners (affiliates of Sempra Energy, TOTAL, Mitsui and a joint venture between Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha) are continuing to move the project forward. While the change in upstream ownership and related diligence efforts on the part of the new owner has pushed back the development timeline initially projected for the Expansion Project, Cameron LNG and the JV Partners are progressing development activities and commercial discussions in furtherance of obtaining the required unanimous consent to move forward with the project.
Granting the requested extension of time will enable Cameron LNG and the JV Partners to complete the necessary commercial arrangements to commence construction and place the Expansion Project facilities into service. The JV Partners anticipate that a final investment decision (“FID”) could be reached with respect to the Expansion Project by the middle of 2021. Cameron LNG expects that the construction of the facilities will take up to 56–58 months to complete, with construction commencing immediately following FID. Before making an affirmative FID on the project, the JV Partners must have assurance that the time permitted under the FTA Order and the Non-FTA Order to begin commercial exports will align with their activities“. https://www.energy.gov/sites/prod/files/2020/03/f72/Cameron%20LNG%20-%20Request%20for%20Extensions%20of%20Time%20%283.6.20%29.pdf
“Saudi Arabia Ventures Into U.S. Natural Gas“, January 22, 2019, Forbes: http://web.archive.org/web/20190124023231/https://www.forbes.com/sites/judeclemente/2019/01/22/saudi-arabia-ventures-into-u-s-natural-gas/
Good article but ownership appears not up to date: https://www.gem.wiki/Cameron_LNG_Terminal
“The United States now produces nearly all of the natural gas that it uses
U.S. natural gas production in 2018 was about 30.6 trillion cubic feet (Tcf), the highest annual amount recorded. Most of the production increases since 2005 are the result of horizontal drilling and hydraulic fracturing techniques, notably in shale, sandstone, carbonate, and other tight geologic formations. Natural gas is produced from onshore and offshore natural gas and oil wells and from coal beds. In 2018, U.S. dry natural gas production was about 2% greater than U.S. total natural gas consumption. Five states accounted for about 68% of total U.S. dry natural gas production in 2018. The top five natural gas-producing states and their share of total U.S. natural gas production in 2018: Texas 22%, Pennsylvania 20%, Oklahoma 9%, Louisiana 9%, Ohiov8%. About 3% of U.S. dry natural gas was produced offshore in the Federal Gulf of Mexico in 2018.” (EIA.gov)
“Energy Infrastructure Update For February 2020
Page 1 of 6 Natural Gas Highlights
• Cameron LNG received authorization to place in service the 0.71 Bcf/d Train 2 at its liquefaction project in Hackberry, LA. The project consists of three trains with a total liquefaction capacity of 2.2 Bcf/d. ” https://ferc.gov/legal/staff-reports/2020/feb-energy-infrastructure.pdf
“President Trump in Louisiana: Promises of new bridge if he’s re-elected, praise for clean energy“, By Dan Boudreaux, The Advocate, May 14, 2019 http://web.archive.org/web/20190515012815/https://www.theadvocate.com/acadiana/news/politics/article_8eef77e4-7696-11e9-a575-1b0bde67641c.html
Excerpt from March 24, 2020 petition to FERC “Mitsui Cameron LNG is an indirect co-owner of the Cameron LNG export facility which is owned by Cameron LNG, LLC (Cameron LNG). Petitioners state that in order to help supply Cameron LNG with natural gas, Mitsui Cameron LNG executed natural gas transportation and storage service agreements with various pipelines and storage operators, including Pine Prairie. Mitsui Cameron LNG also sought assistance from its natural gas marketing affiliate, MEMS, to procure natural gas fuel supplies for the Cameron LNG facility and manage the associated transportation and storage capacity by executing an AMA. Petitioners state that, on April 1, 2019, as part of the subject AMA, Mitsui Cameron LNG released to its affiliate, MEMS, 2,000,000 Dekatherms (Dth) of storage capacity that Mitsui Cameron LNG held at Pine Prairie under Rate Schedule FSS. Petitioners state that the AMA included terms that reflected that the intent of the parties was that the release be (1) temporary and not permanent; and (2) subject to Mitsui Cameron LNG’s right to recall the capacity. Petitioners state that it was always the intent that Mitsui Cameron LNG be the ultimate owner of the capacity to support operations of the Cameron LNG facility. However, in a Capacity Release Offer for the released capacity posted on March 26, 2019, Petitioners inadvertently referred to the prearranged release as non-recallable and, therefore, the release was mistakenly effectuated as not subject to recall by Mitsui Cameron LNG. Petitioners explain further that Mitsui Cameron LNG continued to pay reservation fees for the released capacity to Pine Prairie, and this indicates that Petitioners did not intend the transaction to be a permanent release to MEMS.
Petitioners state that the error was discovered when they planned to effectuate a new replacement arrangement whereby Mitsui Cameron LNG would recall the subject Pine Prairie capacity from MEMS and then re-release it back to MEMS effective April 1, 2020 under one or more updated AMAs and/or non-AMA releases. Petitioners state that, upon realizing this error, MEMS and Mitsui Cameron LNG acted expeditiously to ascertain the best path forward to correct this mutual mistake, and then filed the subject petition.” https://www.ferc.gov/CalendarFiles/20200324161358-RP20-555-000.pdf