Cheniere plans US Southeast hub for LNG imports

Monday, 12 November 2007

The Louisiana Natural Gas Header pipeline would involve the construction of about 330 miles of up to 42-inch diameter pipeline commencing at a point in Beauregard Parish near Dequincy, Louisiana, to a point of interconnect with the Florida Gas Transmission pipeline near its Station 11 in Mobile County, Alabama.


Cheniere said it expected the project could be placed into service by as early as mid-2010.


“By 2010, nearly 10 billion cubic feet per day of LNG regasification capacity will be placed into service in Southwest Louisiana and neighboring Southeast Texas,” Stan Horton, Chenere’s President and Chief Operating Officer.


“Combining new incremental supply with traditional production area access, the Louisiana Natural Gas Header will offer shippers supply diversity unlike any other greenfield project,” Horton added.


“This project would also alleviate increasing natural gas demand in the Southeast primarily driven by electric generation. In recent months, the Florida Public Service Commission has rejected proposals for two new ultra-supercritical pulverized coal generation units representing nearly 2,000 megawatts of new capacity planned to meet near-term demand growth.


“Over the next 10-year planning horizon, incremental natural gas necessary to satisfy new electric generation in the Florida market alone is very conservatively estimated at 1 Bcf/d,” the Houston-based company said.


Cheniere said it would hold a non-binding open season from November 15, 2007 to 5:00 p.m. (CST) on January 15, 2008 to gauge interest from prospective shippers.