American Oil and Gas Reporter - May 2019 - 71

SpecialReport: Gas Compression & Vapor Recovery
mental conservation corridor, avoids impacting more than 100 acres of wetlands
and was designed with consideration of
the area's ocelot habitat. Annova notes
its new terminal also restores more than
250 acres of wetlands and shallow water
habitat to compensate for wildlife lands
lost to the Brownsville Ship Channel and
State Highway 48.
In approving Annova's final EIS, FERC
says the company's proposed impact
avoidance, minimization and mitigation
measures will reduce the project's overall
environmental impacts to less than significant levels.
"We are pleased they recognize our
proactive approach to minimizing our
impact on the environment, including investing in mitigation that is above and
beyond what is required by local, state
and federal regulations," says Omar
Khayum, Annova LNG's CEO. "From
moving the entire site to accommodate
an ocelot corridor, to using electric motor-driven equipment to minimize air
emissions, Annova LNG has demonstrated
its continued commitment to operating
the Annova LNG project in an environmentally responsible manner."
The Cameron County terminal, scheduled to be operational by 2024, will
include natural gas pretreatment and liquefaction facilities, two LNG storage
tanks, a marine dock and LNG transfer
facilities, and a pipeline meter station,
FERC describes.
Natural gas deliveries of 900 million
cubic feet a day will be transported to
the site through a nonjurisdictional intrastate, 36-inch diameter pipeline lateral
owned and operated by a third party. According to Annova, it will take as many
as 125 LNG ships for the facility to meet
annual export limits.
Nearing Construction
The LNG export terminal proposed by
Tellurian Inc. on the west bank of the Calcasieu River, south of Lake Charles, La.,
and its associated 96-mile pipeline, will
have a capacity of 27.6 mtpa, the company
says. On April 2, the company and Total
S.A. signed a heads of agreement (HOA)
for Total to make a $500 million equity
investment in the project, and to purchase
1.0 mtpa of LNG. The HOA also specifies
the companies will enter into an SPA for a
further 1.5 mtpa from Tellurian Marketing's
LNG offtake volumes, with a minimum
term of 15 years, at a price based on the
Platts Japan Korea marker.
Tellurian and Total also report executing

a common stock purchase agreement
under which Total will purchase 19.87
million shares of Tellurian common stock
for $200 million, subject to closing conditions that include the Driftwood project's
final investment decision.
"Total is a premier global natural gas
production and trading company, and will
manage a portfolio of 40.0 mpta by 2020,"
describes Tellurian president and CEO
Meg Gentle. "Our partnership with Total
began before the inception of Tellurian,
when Total endorsed a new business
model for U.S. LNG."
Tellurian says that after receiving
FERC approval of the Driftwood project,
it anticipates beginning construction later
this year, with first delivery of LNG expected in 2023 and full operations under
way in 2026.
In addition to new main line, the Driftwood Pipeline Project includes 3.4 miles
of lateral pipeline, 15 meter stations, and
three compressor stations to transport as
much as 3.9 Bcf/d to feed the facility.
Well-Connected Terminal
Sempra Energy says its subsidiary,
Port Arthur LNG LLC, received FERC
authorization for its Port Arthur facility
on April 18. The terminal, to be built at
the site in Jefferson County, Tx., of a
previously approved but unbuilt import
terminal proposed by Port Arthur LNG,
will include two liquefaction trains, as
many as three LNG storage tanks and associated facilities that the company says
will enable the export of 11.0 mtpa.
The FERC order also approved construction of the Texas and Louisiana connector pipeline that will move gas to the
facility. Sempra notes the FERC permit
is one of the last major regulatory approvals needed before FID.
"Port Arthur LNG should help us
achieve our goal to become one of the
largest exporters of North American
LNG," predicts Carlos Ruiz Sacristán,
chairman and CEO of Sempra North
American Infrastructure.
In December, Port Arthur LNG and
the Polish Oil & Gas Company signed a
definitive 20-year SPA for 2.0 mtpa from
the Port Arthur terminal. The company
received DOE authorization to export domestically produced gas to countries with
which the United States has FTAs in
2015, and says it has a pending application
for exports to non-FTA countries.
FERC says the associated Port Arthur
Pipeline Projects will consist of two pipelines:
the 130.9 mile Louisiana Connector Project

and the 34.2 mile Texas Connector Pipeline,
each with a capacity to transport as much
as 2.0 Bcf/d to feed the facility. The pipeline
projects include three compressor stations
and other related facilities.
Mississippi Facility
Kinder Morgan's Gulf LNG Liquefaction Project will add LNG export capabilities to the company's Gulf LNG
Terminal in Jackson County, Ms. The
company says the upgraded facility will
have a total export capacity of 11.5 mtpa,
and will retain its capability to receive,
store, regasify and deliver natural gas
into the interstate pipeline system, making
it bidirectional.
The terminal, which includes a fivemile, 36-inch diameter send-out pipeline,
is adjacent to the Bayou Casotte Navigation Terminal. Kinder Morgan says it has
a single dock, which is permitted to
receive 170,000 cubic meter LNG vessels,
and is designed to handle vessels with
capacities as great as 250,000 cubic
meters. As part of the liquefaction project,
the company reports the permitted level
will increase to 208,000 cubic meters.
Two on-site storage tanks each have a
capacity of 160,000 cubic meters, Kinder
Morgan says. The regasification facilities
include eight high-pressure cryogenic
pumps and 10 submerged combustion
vaporizers with a total rated send-out capacity of 1.5 Bcf/d.
The company describes the terminal's
compression facilities as including two
centrifugal vapor return blowers, each
with a rated capacity of 13 MMcf/d, three
cryogenic boil-off compressors, each rated
at 12 MMcf/d, and one booster compressor
with a rated capacity of 11 MMcf/d for
sending boil-off gas to the send-out
pipeline when the regasification equipment
is not in use.
Kinder Morgan says the Gulf LNG
facility will be built in two phases, with
the initial single liquefaction train expected
to have a base LNG production capacity
of 5.0 mtpa. An identical-sized train will
be added in the second phase.
FERC adds the terminal also will
have storage facilities for condensate,
ammonia and refrigerants; four flares in
a single flare tower; a spill impoundment
system designed to contain LNG, refrigerants and other hazardous fluids; and
modifications to the existing Gulf LNG
Pipeline to provide connections to the
inlet of the LNG liquefaction pretreatment
facilities.
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American Oil and Gas Reporter - May 2019

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