G2 LNG plans US$11bn LNG export facility
LOUISIANA’S G2 LNG is planning to build a US$11bn LNG export facility on the Calcasieu River in Cameron, Louisiana, US, according to reports.
Associated Press reports that the facility is thought to be one of the largest capital investments in Louisiana’s history. G2 LNG was set up in June 2014 to develop the 14m t/y export facility. The company hopes to begin construction in 2017 and subject to approval, begin exports in early 2020.
In July this year, the US Department of Energy granted G2 LNG a licence to export LNG to the 20 countries that have free trade agreements with the US. This includes Canada, Colombia, Honduras and Israel. However G2 LNG still needs approval to export LNG to other countries that do not have free trade agreements with the US as well as approval for the export terminal form the Federal Energy Regulatory Commission (FERC).
G2 LNG’s chairman Charles “Buddy” Roemer, a former governor of Louisiana, told AP that the company is in discussions with potential customers for its gas in Asia, Europe, India and the Caribbean.
“We plan to use advanced technologies in the design and operations of the facility,” said Roemer to AP, adding that the company would be able to provide long-term, stable and low-cost gas supplies to customers around the world.
Exporting LNG has been controversial in the US. Gas companies argue that there is an excess of natural gas in the US as a result of the fracking boom, which is forcing down prices, and being able to export gas would create thousands of jobs as well as reviving markets. On the other hand, chemical and manufacturing bosses, including IChemE Fellow and Dow CEO Andrew Liveris, say that both domestic and industrial consumers are benefitting from the low gas prices. Lobby group America’s Energy Advantage says that US$110bn of investment in manufacturing has come as a direct result of the low gas prices, creating tens of thousands of jobs. The US government has a difficult task to balance the two arguments and so far the FERC has only granted six export licences.
