Sutherland LNG Law Blog
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B.C. Proposes LNG Tax Rate

Yesterday, the British Columbia (B.C.) government introduced the Liquefied Natural Gas Income Tax Act, which proposes to tax LNG projects at a rate of 1.5% when production begins, rising to 3.5% after capital costs are recovered and then rising to 5% after January 1, 2037.  Some LNG terminal sponsors applauded the reduction in the tax rates that were originally proposed this past February. Read more in the press release and this additional Financial Post...
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Downeast LNG Files to Export to FTA and Non-FTA Nations

Downeast LNG (Downeast) has filed applications with the U.S. Department of Energy to export from its proposed bi-directional LNG terminal in Robbinston, Maine, to nations having a Free Trade Agreement (FTA) with the United States and to non-FTA nations up to 168 Bcf/year of LNG over a 20-year period.  Downeast’s FTA application can be found here and its non-FTA application can be found...
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B.C. Proposes Greenhouse Gas Emissions Standards for LNG Facilities

Yesterday, the British Columbia (B.C.) government proposed new greenhouse gas emissions standards applicable to LNG facilities that, according to a report in the Globe and Mail, establish a benchmark that is lower than any other in the world.  A report in the Vancouver Sun states that LNG terminal sponsors say the proposed rules will not “derail their...
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Sabine Pass LNG Files Monthly Construction Status Report

Sabine Pass LNG filed a report with FERC covering construction activities through September 2014 at its LNG export terminal in Cameron Parish, La.  Stage 1 (liquefaction trains 1 and 2) engineering is 99.9% complete, procurement is 99.9% complete, and subcontract and direct hire construction work are 50.9% and 44.5% complete, respectively.  Stage 1 overall project completion is 75.6% against the plan of 76.1%.  Stage 2 (liquefaction trains 3 and 4) engineering is 88.3% complete, procurement is 63% complete, and subcontract and direct hire construction work are 26.8% and 8.5% complete,...
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Port Dolphin Energy Requests Additional Time to Construct Onshore Pipeline for Deepwater Port

Port Dolphin Energy LLC (PDE) filed a request with FERC to extend to December 31, 2018 the deadline by which PDE must complete construction and place into service the onshore portion of a pipeline to interconnect with PDE’s proposed Deepwater Port (DWP) terminal offshore of Tampa, Fla.  PDE states that although its DWP was initially planned to receive LNG imports, its project is still commercially viable and it is undertaking business arrangements for the DWP to receive U.S.-produced LNG for regasification and subsequent delivery into the Florida market.  PDE’s request can be found...
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NextDecade Expects to File for FERC Pre-Filing Review in January 2015

The Brownsville Herald reports that NextDecade expects to file a request in January 2015 to begin FERC’s pre-filing environmental review process for a proposed LNG export terminal at the Port of Brownsville, Texas.  The pre-filing request would include a proposal for an interconnected 125-mile-long pipeline, 36 to 42 inches in diameter, with a capacity of 1 Bcf/day.  NextDecade is also considering constructing an LNG export terminal at the Port of Galveston,...
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Freeport LNG Receives Authorization to Begin Construction

FERC issued an order today granting Freeport LNG authority to commence construction of its LNG export terminal project near Quintana Island, Brazoria County, Texas.  The order authorizes construction of the Pretreatment Plant, the Liquefaction Plant, and the Phase II Modification Project, with certain exceptions.
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