Eversheds Sutherland LNG Law Blog
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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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Bills Introduced to Expedite LNG Export Authorizations

On December 11, 2017, U.S. Congressman Bill Johnson (R-OH) introduced two bills related to LNG. The “Unlocking Our Domestic LNG Potential Act” (H.R. 4605) would allow domestic LNG suppliers “to export natural gas after completing the FERC review process – instead of waiting even longer for additional approval by the U.S. Department of Energy” (DOE). Tim Ryan (D-OH) is cosponsor of the bill. The “Ensuring Small Scale LNG Certainty and Access Act” (H.R. 4606) would codify the DOE’s proposed rule to encourage the exports of small volumes of natural gas, “as countries in the Caribbean, Central...
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Commissioning at Dominion Energy Cove Point LNG Plant Begins

Dominion Energy announced yesterday that feed gas has been introduced into its newly constructed Dominion Energy Cove Point LNG, LP (DECP) liquefaction facility, which is currently undergoing commissioning in Lusby, MD. According to the press release, “Shell NA LNG is providing the natural gas needed for liquefaction during the commissioning process and will off-take the LNG that is produced. When commissioning is complete, DECP will produce LNG for 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 under...
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Tokyo Gas Signs LOI with AGDC for Alaska LNG Project

Alaska Gasline Development Corporation (AGDC) announced yesterday that it has signed a Letter of Intent (LOI) with Tokyo Gas Co., Ltd. “regarding the sale and purchase of LNG from AGDC to Tokyo Gas Co., Ltd. as well as a commitment to explore other opportunities to materialize Alaska LNG.”  The proposed Alaska LNG project consists of an 800-mile pipeline and LNG liquefaction and export facility “that will provide a direct and reliable link between the vast proven, conventional, natural gas resource on Alaska’s North Slope with the growing LNG markets in Asia.”...
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Canada Makes First LNG Export to China

Reuters reports that Fortis BC has shipped a cargo of LNG to China, making it the first LNG cargo exported from Canada to China. According to the report, the relatively small cargo of approximately 17 tonnes of LNG was produced at FortisBC’s Tilbury plant near Vancouver, British Columbia, and shipped to China via containers loaded onto ships. The article notes that shipment by container instead of on a tanker reduces the need for large export or import terminals and that “[w]hile dozens of LNG export terminals have been proposed for the West Coast of Canada, so far none have moved to...
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Polish Gas Company Signs Deal for Sabine Pass LNG Supplies

The Polish Oil and Gas Company Group announced last week that it has signed a five-year contract with Centrica LNG Company Limited for LNG supply primarily sourced from Cheniere Energy’s Sabine Pass LNG terminal in Cameron Parish, La.  The contract provides for up to 9 cargoes of LNG to be delivered over the five-year term beginning in 2018.  The LNG will be delivered to the President Lech Kaczyński LNG Terminal in Świnoujście, Poland....
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Cove Point Authorized to Export LNG Commissioning Cargoes

FERC has issued a letter order authorizing Dominion Energy Cove Point LNG, LP to export by vessels the volumes of produced LNG related to commissioning activities for the Cove Point Liquefaction Project in Lusby, Md.  The letter order does not authorize commencement of service.        
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