Columbia Gulf Transmission (CGT) has urged the US Federal Energy Regulatory Commission (FERC) to act quickly on its certificate authorisation for the 493 mill cu ft per day Louisiana XPress project.
CGT warned that it was critical to begin construction in September to avoid the rainy season and meet the 1st February, 2022, operational target.
This project would create 493 mill cu ft per day of incremental mainline capacity on CGT's system, and combined with the utilisation of existing capacity, allow for the transportation of 850,000 tonnes per day - north-to-south - from its mainline pool to a primary delivery point at an inter-connection with Kinder Morgan Louisiana Pipeline in Evangeline Parish.
It will primarily provide additional supplies to Cheniere’s Sabine Pass LNG export facility.
US LNG feedgas demand in August to date has averaged nearly 4.4 bill cu ft per day, a utilisation rate of just over 40% as global demand rebounds from the coronavirus pandemic demand losses.
LNG feedgas demand is forecast to grow substantially by 2022 as global demand for LNG rebounds and more stable market conditions return, according to S&P Global Platts Analytics.
In a letter to FERC late last week, CGT said that it had received an environmental assessment from FERC on 6th February, finding no significant impact, provided that certain mitigating measures are implemented. However, the project has still not received a certificate.
