Port Arthur LNG Gets Permits

U.S. energy company and LNG operator Sempra Energy (SRE) said that its Port Arthur LNG export terminal has moved one step closer to obtaining a federal permit.

The Federal Energy Regulatory Commission (FERC) released a positive environmental impact statement for the project on Thursday, clearing Port Arthur LNG for the next round of the review process.

FERC report concluded the project “would result in some adverse environmental impacts, but these impacts would be reduced to less-than-significant levels.”

In addition to the Port Arthur LNG project approval, the Federal Energy Regulatory Commission issued the EIS for the Texas and Louisiana connector pipeline projects that will deliver natural gas to the new export facility, Sempra said in its statement.

"Today's positive review of our Port Arthur liquefaction-export project and new pipeline projects by the FERC represents a significant step forward as we remain focused on becoming North America's premier infrastructure company," said Carlos Ruiz Sacristàn, president and CEO of Sempra North American Infrastructure Group.

The proposed Port Arthur LNG project is expected to include two natural gas liquefaction trains capable of processing approximately 11 million tonnes per annum (Mtpa) liquefied natural gas (LNG), up to three LNG storage tanks and associated facilities and new natural gas transmission pipelines in Texas and Louisiana.

The FEIS is the final step in the environmental review process before FERC can proceed to issue an order approving the project.

Last month, Port Arthur LNG and the Polish Oil & Gas Company signed a definitive 20-year sale-and-purchase agreement for LNG from the Port Arthur LNG as part of Sempra Energy's long-term goal of exporting 45 Mtpa of North American LNG to meet the global demand. The agreement is subject to certain conditions, including Port Arthur LNG making a final investment decision.