Eversheds Sutherland LNG Law Blog
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Coast Guard Approves WSA for Rio Grande LNG Project

The San Antonio Business Journal reports that the U.S. Coast Guard (USCG) has approved the water suitability assessment (WSA) for the proposed Rio Grande LNG project. The USCG found that the Brownsville, Texas ship channel is suitable for carrying shipments of LNG and that the proposed Rio Grande LNG export facility could safely co-exist with a SpaceX rocket launch pad being built 5 miles away....
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Cheniere Signs LNG Deal with Trafigura

Cheniere Energy, Inc. announced that its subsidiary Cheniere Marketing, LLC (Cheniere Marketing) has entered into an LNG sale and purchase agreement with Trafigura Pte Ltd (Trafigura), under which Trafigura has agreed to purchase approximately 1 million tonnes per annum of LNG from Cheniere Marketing on a free on board basis for a term of 15 years beginning in 2019. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.  ...
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EIA Projects Average U.S. LNG Exports to Increase by 1 Bcf/day in 2018

The U.S. Energy Information Administration (EIA) has released its monthly Short-Term Energy Outlook.  EIA projects that LNG gross exports will average 3.0 Bcf/d in 2018, up from 1.9 Bcf/d in 2017, as U.S. liquefaction capacity continues to expand.  EIA expects Dominion Energy’s Cove Point LNG terminal under construction in Lusby, Md., to ramp up to full capacity and, at the Elba Island LNG facility under construction near Savannah, Ga., 6 of the 10 small modular trains, each with a capacity of 0.03 Bcf/d, are expected to enter service. The first liquefaction train (capacity 0.7 Bcf/d) under...
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FERC Releases Schedule For Driftwood LNG Environmental Review

FERC has released the schedule for its environmental review of Driftwood LNG, LLC’s (Driftwood) proposed liquefaction and LNG export terminal to be located on the west bank of the Calcasieu River between river mile markers 22 and 23 in Calcasieu Parish, La.  FERC intends to release its Final Environmental Impact Statement for the project on October 12, 2018.  Other federal agencies having jurisdiction over the project would then have until January 10, 2019, to complete their review.  Driftwood is owned by Tellurian Inc.  ...
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Corpus Christi Liquefaction Files Construction Status Report

Corpus Christi Liquefaction has filed a report with FERC covering construction activities at its liquefaction and LNG export terminal at Corpus Christi, Texas, through November 2017.  The report states that engineering has progressed to 100.0%, procurement has progressed to 93.9%, subcontract and direct hire construction work are 56.1% and 55.8% complete, respectively. The total project has progressed to 77.4% complete against the plan of 80.8%.  ...
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Dominion Energy Cove Point LNG Commercial Operations to Begin Early 2018

Dominion Energy has released a statement that it is “continuing with final commissioning work at its Cove Point LNG export facility in Lusby, MD, and looks forward to commercial operations early next year under the terms of previously negotiated 20-year contracts with ST Cove Point, which is the joint venture of Sumitomo Corporation and Tokyo Gas, and for GGULL, the U.S. affiliate of GAIL (India) LTD.” Dominion Energy also stated that “the characterization of contract renegotiations is false” and “there have been no changes in the contract terms since initial contract execution, and Dominion...
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Canada’s First LNG Export Shipment Arrives in China

FortisBC announced that its single ISO container shipment of LNG, the first LNG to be exported from Canada to China, arrived in China on Thursday.  The LNG was produced at FortisBC’s Tilbury plant near Vancouver, British Columbia.  According to the press release, since the LNG was shipped via container ship, bypassing receiving LNG terminals and regasification facilities, cost and infrastructure constraints of the conventional model of shipping by LNG tanker were avoided.  “FortisBC is now looking forward to a new shipment of four ISO containers to China in mid-December and the prospect of...
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