FERC grants LNG permit

Petroleum News

Cheniere Energy said June 21 that the Federal Energy Regulatory Commission has authorized development of the proposed liquefied natural gas receiving terminal on Quintana Island near Freeport, Texas.

Cheniere owns a 30 percent limited partnership interest in Freeport LNG Development which will construct and operate the terminal.

Freeport LNG filed an application with FERC in March for authorization to construct and operate the 1.5 billion cubic feet per day facility under the Natural Gas Act.

The Dow Chemical Co. and ConocoPhillips are contracted with Freeport LNG for all of the facility’s capacity.

Charif Souki, chairman and chief executive officer of Houston-based Cheniere, said the company is “confident that this first success will be followed by a similar experience for the applications we filed with FERC” in December for LNG receiving terminals at Sabine Pass, La., and Corpus Christi, Texas.

“We believe enough infrastructure can be built to allow LNG to account for 25 percent of domestic natural gas consumption by the end of the decade,” Souki said.