Exxon-Qatar venture seeks permit for Texas LNG export plant


An Exxon Mobil (XOM) venture with Qatar Petroleum has asked the FERC for permission to build and operate a liquefied natural gas export plant at the site of its existing import terminal at Sabine Pass near the Texas-Louisiana border.

The $10B project is one of the main beneficiaries of the Energy's Department's plan to change the way it vets such export applications by prioritizing reviews on the most commercially mature projects; under a first-come-first-served review plan the DoE wants to replace, the project would have been ninth in line for review, putting decisive action perhaps two years away.

Even so, the expensive FERC application process now is still expected to take ~18 months.

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Comments (5)
  • Moshe Ben-Reuven
    , contributor
    Comments (315) | Send Message
     
    LNG is a losing proposition for the US, which does not have NG proven reserves to last even 15 years. Sending the LNG to China will increase US dependency on OPEC crude. Yes, since US proven oil reserves are even worse than NG-- even accounting for all the wet shale condensate exploding on our railways.

     

    Exxon should put the same $10B into a synthetic gasoline plant, which would produce 177,000 BPD high octane gasoline via MTG (ExxonMobil Methanol to gasoline technology), using about 12 MTPA of NG. This is a proven 1980s technology which would benefit the US market, not just XOM.
    7 Jul 2014, 05:13 PM Reply Like
  • aeroguy48
    , contributor
    Comments (905) | Send Message
     
    And just where is this so called wet shale exploding on our railways? I haven't seen it. Is it the 3 million barrels a day being shipped on the railways and they are all exploding? How come the EIA says we have NG reserves to last hundreds of years? I guess you have superior information.
    7 Jul 2014, 06:45 PM Reply Like
  • Moshe Ben-Reuven
    , contributor
    Comments (315) | Send Message
     
    Dear Aero,

     

    As to 100 years, Just read the EIA 2012 publications about Proven Reserves and compare with consumption. Hope you still remember division. We have NG for less than 15 years.

     

    As to exploding, just read SeekingAlpha on XOM today, or the WSJ, about the problems with condensate from Bakken shale and beyond. And if you still do not see "around you", I would really seek out a good ophthalmologist.
    7 Jul 2014, 07:16 PM Reply Like
  • User 353732
    , contributor
    Comments (5161) | Send Message
     
    LNG exports will create national wealth, provide good jobs and enhance the geo strategic position of the US while constraining Gazprom and Iranian natural gas development. Texas and Pennsylvania now have a global competitive advantage in the entire natural gas and gas liquids value chain and this advantage should be nurtured and enhanced.
    8 Jul 2014, 01:05 PM Reply Like
  • Moshe Ben-Reuven
    , contributor
    Comments (315) | Send Message
     
    Creating Synthetic NG/gasoline industry in the USA will create vastly more jobs than LNG. Additional benefits are national security, energy security, positive balance of trade.

     

    LNG may only briefly enrich some narrow interests, which are now desperate for cash, while a national resource would be drained irreversibly. LNG is not an option for PA shale gas, due to the huge infrastructure needed to pipeline this gas to LNG liquefaction/exporting terminals. Russia's Gazprom already has a $0.5 trillion NG supply deal with china, so you may soon say goodbye to JCC pricing for LNG.
    9 Jul 2014, 08:40 AM Reply Like
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