Sutherland LNG Law Blog
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Producer Sponsors Not Moving Forward on Alaska LNG Project

Alaska Dispatch News reports that at a hearing before Alaska state legislators, ExxonMobil said it will not move forward with the front-end engineering and design, or FEED phase of development of the Alaska LNG Project, which was set to start in 2017 and was expected to cost up to $2 billion.  ConocoPhillips and BP, the other two producer sponsors of the project, also indicated that they would not be moving forward with the FEED phase.  The producer sponsors are in negotiations to turn over their combined 75% share in the project to the Alaska Gasline Development Corp., which currently...
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Study: Alaska LNG Project Too Expensive to be Competitive

Alaska Public Media reports that consulting firm Wood Mackenzie has released a study finding that in its current form, the Alaska LNG Project is too expensive to be competitive with other LNG projects proposing to serve north Asian markets.  The report offers options to reduce the costs of the project, estimated to be $45 – $65 billion, including bringing in outside investors or full state ownership, which could lower federal taxes.  The study results were provided to a joint hearing of the House and Senate Resources Committees on August 24,...
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DOE Grants American LNG Marketing Blanket Export Authority

The U.S. Department of Energy (DOE) has issued an order granting American LNG Marketing blanket authority to export up to 3.02 Bcf/year of LNG over two years from its proposed Hialeah facility near Medley, Fla. to nations with and without a Free Trade Agreement with the United States with which trade is not prohibited by U.S. law or policy.  The LNG would be loaded into ISO containers at the Hialeah facility and exported on ocean-going...
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U.S. LNG Cargo Reaches China Via Expanded Panama Canal

MarketWatch reports that the first shipment of LNG produced from the lower 48 U.S. states to reach China was shipped from the Sabine Pass LNG terminal in Cameron Parish, La., passed through the expanded Panama Canal, and arrived at the Yantian Port in southern China on Monday.  The report states that the cargo was purchased by China National Offshore Oil Corp. as part of a long-term...
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Venture Global LNG Closes Additional $15 Million Funding Deal

Venture Global LNG, Inc., announced that it has closed a fifth round of equity investment, raising additional capital of $15 million and bringing the total capital raised to date to over $280 million.  The proceeds will fund Venture Global LNG’s proposed 10 million tonnes per annum (MTPA) Venture Global Calcasieu Pass LNG facility at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico, and the proposed 20 MTPA Venture Global Plaquemines LNG facility in Plaquemines Parish, La., on the Mississippi River 30 miles south of New...
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Corpus Christi Liquefaction and Sabine Pass LNG File Construction Progress Reports

Corpus Christi Liquefaction (CCL) and Sabine Pass LNG (SPL) have filed reports with FERC covering construction activities at their LNG export terminals through July 2016.  For its liquefaction and LNG export terminal under construction at Corpus Christi, Texas, CCL reports that engineering has progressed to 98.7%, procurement has progressed to 55.5%, Bechtel’s direct hire construction has progressed to 10.4%, and the total project has progressed to 39.5% complete. SPL reports that for its liquefaction and LNG export terminal at Sabine Pass, La., Train 1 substantial completion was achieved...
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State to Take Over Alaska LNG Project

Alaska Dispatch News reports that Alaska Gasline Development Corp.  (AGDC) and the producer sponsors of the proposed Alaska LNG Project, ExxonMobil, ConocoPhillips and BP, “are working ‘cooperatively’ on a plan to turn over leadership of the project to Alaska,” according to Keith Meyer, president of AGDC.  AGDC represents Alaska’s 25% interest in the project.  Due to the global slump in oil and natural gas prices, the producers have recently indicated that they may not all continue with the project, which involves construction of a $55 billion liquefaction and export terminal...
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