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Thursday, May 25, 2017
Southwest Louisiana ,

SCT&E expecting busy months with LNG export terminal project in Cameron

Last Modified: Thursday, August 11, 2016 10:08 AM

By Justin B. Phillips / American Press

The next few months will be busy for Southern California Telephone and Energy as the company negotiates offtake agreements, continues the Federal Energy Regulatory Commission filing process for its $6.9 billion project on Monkey Island, and partners with a new LNG contractor.

SCT&E plans to construct a multibillion-dollar liquefied natural gas export terminal in Cameron Parish. The terminal received a 30-year authorization in 2014 from the Department of Energy for the export of 1.6 billion cubic feet per day of natural gas, or 12 million tons per year of domestically produced LNG.

SCT&E Chairman Greg Michaels said the formal filing for the project will be submitted to FERC in the last quarter of 2017 by Technip, the project management company tasked with executing engineering services vital to the terminal’s creation. SCT&E officials announced the partnership with Technip in late July and touted its experience with other LNG projects.

Michaels said SCT&E is also making headway with offtake agreements. He said several are being negotiated and should be finalized in the near future.

“Binding contracts of this nature take a considerable amount of time to negotiate,” he said. “The project is moving along steadily, and we are on our way to having the facility’s total 12 million-tons-per-year capacity fully contracted.”

By April, the company had signed four agreements for the sale of LNG from the facility, pushing the offtake total to 4.7 million tons per year. In May, SCT&E entered into an offtake agreement with a China-based gas distributor that company officials said was the first of its kind between a domestic developer and private Chinese LNG terminal owner.

“Our 20-year fixed-price LNG offering is a real game changer and is being widely accepted in the LNG industry,” Michaels said. “We have an outstanding team that works hard daily to move this project through completion, and a great group of supporters which we are very appreciative for.”

The export terminal, to be 2.5 miles from the Gulf of Mexico, should be operational by 2021, officials said.

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