Yet another liquefied natural gas (LNG) company is looking to take advantage of low domestic natural gas prices by exporting the resource from its proposed facility in Louisiana.
G2 LNG LLC filed two separate applications with the U.S. Department of Energy this week, one for authorization to export to Free Trade Agreement (FTA) nations and the other to non-FTA nations, reports Natural Gas Intelligence. Approval from the DOE is just one of the hurdles G2 will have to clear before it can construct its natural gas liquefaction and export complex, which is set for the Calcasieu Ship Channel in Cameron Parish. Should both applications receive approval, G2 hopes to export as many as 14 million tons of LNG each year.
While G2 waits for approval from the DOE, the company is working to secure long-term contracts for gas supplies as well as exports. With an expansive network of natural gas pipelines throughout the nation and vast quantities of the fossil fuel available from areas like Eagle Ford and Haynesville, G2 believes supply contracts shouldn’t be hard to come by. The true challenge might be the outlook for global demand, which has fluctuated in the turbulent oil and gas market in recent months.
The Calcasieu Ship Channel may ultimately be called home by several LNG facilities. Magnolia LNG and Southern California Telephone & Energy LNG both have projects set for the area, both of which are at varying stages of the approval process. The three facilities are just a portion of the wave of LNG projects set for the Gulf of Mexico, many of which are set for Louisiana and Texas.