As One Louisiana LNG Project Begins, Others Still in Development
The Cameron LNG project completed its final train this month, but other LNG projects such as Calcasieu Pass LNG, Driftwood LNG, and Lake Charles LNG face difficulties during the economic downturn.
Cameron LNG’s third and final train of its Hackberry, Louisiana, liquefied natural gas (LNG) plant began commercial operations to export LNG globally after receiving authorization from the Federal Energy Regulatory Commission.
Train 3 construction was completed earlier in the year and gas flow began in late April before the final stage of the commissioning process. The three-train 12-mtpa LNG project began initial production in May.
The project’s Train 1 began commercial operations in August 2019, while Train 2 began in March with McDermott and Chiyoda providing the engineering, procurement, and construction for the project since its initial award in 2014.
Cameron LNG is one of the few recent projects in Louisiana that has been successfully completed.
Venture Global’s 10-mtpa Calcasieu Pass LNG project in Cameron Parish, Louisiana, is in early development. The first LNG storage tank roof was raised in April. The first equipment to liquefy natural gas at the facility was also installed in June after the company set in place two Chart Industries brazed-aluminum heat exchangers, which were the first of 18 cold boxes to be part of the liquefaction process system.
During its Q2 earnings call in early August, Tellurian said it streamlined its 27.6-mtpa Driftwood LNG project. The company extended its memorandum of understanding (MOU) in February with Petronet LNG Ltd. to negotiate the purchase of up 5 mtpa of LNG from the Driftwood project, concurrent with an equity investment in Driftwood Holdings.
Tellurian also amended the terms of a 2019 term loan, including an 18-month extension of the maturity date to November 2021. Project final investment decision was expected this year, with exports expected by 2023.
Energy Transfer’s Lake Charles LNG project also remains in the development phase. The company took over development of the two-train 11-mtpa project in March after Shell dropped out due to unfavorable market conditions.