US Approves Power LNG for Annual Natural Gas Exports of 51.75 Billion Cubic Feet Equivalent

en.Wedoany.com Reported - On October 30, the U.S. Department of Energy issued a long-term liquefied natural gas (LNG) export license to Power LNG LLC, authorizing the company to export LNG equivalent to 51.75 billion cubic feet of natural gas per year from the proposed Project Seawolf at the Port of Galveston, Texas, with export destinations limited to countries that have signed free trade agreements with the United States meeting the requirements for national treatment in natural gas trade. The license document number is DOE/HGEO Order No. 5513.

The approved export volume is approximately 1.465 billion cubic meters of natural gas equivalent per year. The license takes effect on the date of the project's first export and remains valid until December 31, 2050, and permits supplemental exports before December 31, 2053 of any approved quantities not exported during the original license period. The U.S. Department of Energy simultaneously revoked the company's previous export license for 7.0445 billion cubic feet of natural gas equivalent per year, with the new license superseding the original authorization.

Project Seawolf is proposed to be built on Pelican Island at the Port of Galveston, Texas, covering approximately 30 acres. The project plans to adopt modular liquefaction production facilities, with a single train designed to process approximately 13 billion cubic feet of natural gas equivalent per year, and a total designed capacity of approximately 51.75 billion cubic feet once all phases are completed. The project will be developed in phases, with subsequent capacity gradually increasing based on the signing of commercial agreements and sales volumes.

The project plans to use International Organization for Standardization (ISO) containers that meet transportation requirements for LNG shipping, along with supporting container loading facilities and dedicated vessel berths. The first phase is designed to accommodate up to 50 ISO containers. Power LNG plans to enter into a long-term natural gas supply agreement with Energy Transfer's Houston pipeline system to provide feed gas for the liquefaction facilities.

Under the terms of the license, Power LNG must notify the U.S. Department of Energy within two weeks after the first export, and submit reports on project construction, expected commissioning dates, and progress on long-term supply and export contracts before April 1 and October 1 of each year. Relevant long-term contracts must, in principle, be submitted to the U.S. Department of Energy within 30 days of signing.