KBR wins FERC FEED contract for Gulf LNG Liquefaction project


KBR is awarded a contract for front-end design work on the Gulf LNG Liquefaction project to export liquefied natural gas, which is 50% owned by Kinder Morgan (KMI, KMP) through El Paso Pipeline Partners (EPB); the contract value is not disclosed.

KBR will perform engineering for two LNG trains, each 5M metric tons/year, and associated facilities.

The deal will provide engineering work to the LNG export project prior to undergoing FERC review; Gulf LNG Liquefaction is near the top of the Energy Department's current queue for review.

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Comments (13)
  • saratogahawk
    , contributor
    Comments (2538) | Send Message
     
    Lets see its in the queue just behind the Keystone Pipeline. Just joking of course but don't expect this to slide through without some insults from this Administration.
    30 May 2014, 05:37 PM Reply Like
  • Grandpa in Tucson
    , contributor
    Comments (43) | Send Message
     
    One would hope that given the current political climate with Russia and our EU allies, the US could be the best opportunity to become the #1 LNG supplier to our allies.
    30 May 2014, 06:49 PM Reply Like
  • mapodga
    , contributor
    Comments (7676) | Send Message
     
    What political crap is this.

     

    We in Europe will buy the cheapest NG. If this come from Russian or Algerian pipeline doesn't metter. Neither if come LNG ftom US, Quatar or Australia. The price is only that metter in free market oriented world.
    31 May 2014, 05:50 AM Reply Like
  • Ledlights
    , contributor
    Comments (401) | Send Message
     
    When the cost includes the possibility of complete shutoff then that is an expense contingency that can overwhelm market prices. An off and on market is not "free".
    1 Jun 2014, 03:06 PM Reply Like
  • lau56806
    , contributor
    Comments (65) | Send Message
     
    Remember the multi-billions ($$B) gas deal recently signed between Russia and China. We could have made the deal with China and earn billions to do the "green" energy projects which the left wants. Just like the Keystone deal, whether we like it or not the project will go. Except in this case the money and control goes to somebody else, in this case Russia. Are we that "rich" to ignore billions of dollars, which can be used to support for the "green" energy projects, rather than "borrow" money for these green energy projects?
    30 May 2014, 07:05 PM Reply Like
  • badbernanke
    , contributor
    Comments (395) | Send Message
     
    What pipeline would the US have used to transport gas to China?
    30 May 2014, 09:05 PM Reply Like
  • saratogahawk
    , contributor
    Comments (2538) | Send Message
     
    bad we have had multiple LNG projects lingering for years lacking the appropriate federal approvals.
    30 May 2014, 09:28 PM Reply Like
  • mapodga
    , contributor
    Comments (7676) | Send Message
     
    This is not coincidence.

     

    US don't want to export LNG, because the prices in US would go up, and a bunch of other industries would become less competitive. It is trade-off and hidden state aid, that rest of the world can't prove.
    31 May 2014, 05:52 AM Reply Like
  • milkchaser
    , contributor
    Comments (1015) | Send Message
     
    If more NG comes on the market, the price would not necessarily go up, not even in the US. It would put a floor on the price below which it would not go.
    31 May 2014, 10:38 AM Reply Like
  • Ledlights
    , contributor
    Comments (401) | Send Message
     
    If you can reliably predict any aspect of ng pricing I believe you are unique and there should be ways for you to profit significantly. US chemical companies and potentially affected manufacturers are not so reassured.

     

    http://bit.ly/1u5uxdJ

     

    See also:
    http://bit.ly/1u5uw9D

     

    - not all of the LNG projects already proposed are considered viable.

     

    As far as gas export to China, I wonder how our LNG prices would/will compete with gas from Australia which supposedly has over 200 billion dollars in LNG projects currently being developed. If Europe is a more likely market, how much would European countries have to pay for LNG above gas from Russia to gain greater independence? What is their situation in terms of oil dependencies?
    1 Jun 2014, 02:59 PM Reply Like
  • mapodga
    , contributor
    Comments (7676) | Send Message
     
    i can tell you from first hand.

     

    If this Russian gas to be replaced in middle and east Europe (west Europe have already supply by LNG), big majority would be replaced with pipeline gas from Norway (Poland, Germany, ...) and Algeria (italy, france,...).
    Problem is middle Europe (Slovakia, Hungary, Austria) that don't have sea and it is also a far from seaside to build new pipeline. For these probably best solution is Nabuco pipeline that would bring gas from Azerbaijan, Iran and other Caspian state. But it is longterm project that didn't start yet. So uf we cut the Russian gas there, we should replace it by oil and coal.

     

    So to say simply, this Russian gas if should be replaced would be replaced by other pipeline gas with similar cost. For the smaller part (to Germany through Roterdam for example) would be also replaced by Additional LNG, but again with world prices that are far lower that US producer-exporter currently expect.

     

    It is another question about this independence of Russian gas.
    We don't see this so big problem as it is seen by some that want to export instead of Russians. Russians newer used it against Europe like weapon (except Ukraine, but there nobody knows who begin and who is fighting for what). It is also problem that if we cut them gas export they will cut Europe goods import in Russia. Could become big problem fir many thousands Europe companies that export there in values that are far greater then it is value of this gas.

     

    Every stick have two sides.
    3 Jun 2014, 02:44 AM Reply Like
  • mapodga
    , contributor
    Comments (7676) | Send Message
     
    Ledlights:

     

    Things are not so unknown.

     

    Here is calculation of the US competition for Asia market and I'm not sure that LNG on base uf US prices of gad and their own production prices can compete with them. On base of current prices it would be hard for US exporter to bring the LNG to Asia under 8$ per MMBTU. As you see they plan to be under 6,5$
    http://bit.ly/XoseEo

     

    Also As you can see the cost of LNG alternative against pipeline is around 2,2$ per MMBTU.
    On base of that Current difference between prices at henryhub (around 5$) and prices of Russian gas at Germany border (around 10$) is around 2,7$ per MMBTU.

     

    However this doesn't mean that Russians wouldn't lower the prices if you begin to build the additional terminals there.
    Calculation will also fail if the prices in US would go up because additional usage in electricity production and export. In the end of the day also many fracking companies claims that are overdebt.

     

    Anyway even so, this Australian, African and Papua producers can beat the prices of LNG.
    3 Jun 2014, 03:43 AM Reply Like
  • Ledlights
    , contributor
    Comments (401) | Send Message
     
    mapodga,

     

    If you have been watching gas for much time you should be aware of the boom/bust history of that market - at least the domestic US one. One of the problems has been unforeseen developments. I am not reassured by seemingly confident assertions about the economics related to natural gas. Maybe as it truly becomes a world market like oil there will be more consistent pricing? But I remain very cautious about anybody's crystal ball. I do agree with much of the data you mention, particularly the advantage of LNG prices from other nations likely to compete with any US LNG.

     

    http://bloom.bg/1kqcjgz

     

    (The article you cite mentions the cost competitiveness between natural gas and oil - which is problematic in my mind, because the ratio of price between the two is currently way out of whack in terms of the historic relationship or the relative energy content of the two fuels.)
    3 Jun 2014, 01:22 PM Reply Like
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