Staff report

The U.S. Department of Energy has signed two orders authorizing the export of liquefied natural gas from Port Arthur LNG, a planned facility in Jefferson County, and the Driftwood LNG export facility in Calcasieu Parish, Louisiana, south of Lake Charles.

In an issued statement Thursday, DOE said the signing is part of the European Union-U.S. Energy Council High-Level Business to Business Energy Forum in Brussels.

“The Driftwood and Port Arthur exports will ensure that U.S. LNG continues to impact our friends and allies across the globe,” Energy Secretary Rick Perry said in an issued statement. “The United States is the world’s leading producer of natural gas, and our exports provide a reliable, diverse and secure source of energy to countries looking to diversity their energy portfolios.”

“Today’s approval marks a major regulatory step for the development of Port Arthur LNG that would allow LNG to be exported from Port Arthur to all European, Asian and other markets around the world,” said Carlos Ruiz Sacristán, chairman and CEO of Sempra North American Infrastructure. “Port Arthur LNG is one of Sempra Energy’s five LNG-export projects under development that we believe will help to further establish the U.S. as a global leader in LNG exports.”

Port Arthur LNG would be located off U.S. 87, en route to Sabine Pass. The company has received Federal Energy Regulatory Commission permission to “site, construct and operate,” but has not issued a final go-ahead on the project.

The Port Arthur LNG project is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities that will enable the export of about 11 million tonnes per annum, or Mtpa, of LNG. The FERC order also approved the construction of the Texas and Louisiana connector pipeline projects that will provide natural gas transportation for the new liquefaction facilities.

Thursday’s announcement said Port Arthur LNG is authorized to export about 13.5 million tonnes per annum of LNG.

The company has said previously that the multi-billion dollar project would involve some 3,500 engineering and construction workers and perhaps 200 permanent jobs.

Port Arthur LNG and the Polish Oil & Gas Co. signed a definitive 20-year sale-and-purchase agreement for two Mtpa of LNG from the Port Arthur LNG project, subject to certain conditions. Last year, Sempra LNG selected Bechtel as the engineering, procurement, construction and commissioning contractor for the project, subject to reaching a definitive agreement.

Driftwood is a project under development by Houston-based Tellurian.

The U.S. is a net exporter of natural gas, and has sent domestic LNG to 35 countries.