Although doubts have been raised about the future of liquefied natural gas (LNG), the Federal Energy Regulatory Commission (FERC) has approved another LNG export project. According to Natural Gas Intelligence, FERC has given the green light to the Corpus Christi Liquefaction LLC export project and its accompanying pipeline, which is set for Texas’ coastline.
The terminal, proposed by Cheniere Energy Inc., is the fifth LNG facility to receive the nod of approval from FERC. However, the Corpus Christi project still needs final funding approval by Cheniere, which is expected to come early next year.
The Corpus Christi project is not Cheniere’s only LNG endeavor, though. The Sabine Pass LNG facility, currently under construction in Louisiana’s Cameron Parish, is expected to begin production in the latter half of 2015.
The latest approval is unique, however, in that it is the first okayed facility which will be built from scratch. The other projects which have been approved by FERC were set to convert already-existing import terminals into LNG export terminals. Before the project can move forward, though, it also needs the U.S. Department of Energy’s approval for non-free trade agreement exports.
The outlook of LNG has dimmed in recent months. Low oil prices and LNG demand has already caused one company to back out of its planned facility. Excelerate Energy announced this week that it is putting its LNG project planned for Texas on hold.
Most of the LNG projects in the U.S. are set for either the Gulf Coast or Alaska. The Sabine Pass facility and Sempra Energy’s Cameron LNG project, both along Louisiana’s coast, are the only project to make it as far as to receive final investment approval.