Golden Pass Products LLC; Application for Long-Term Authorization To Export Liquefied Natural Gas Produced From Domestic Natural Gas Resources to Non-Free Trade Agreement Countries for a 25-Year Period, 72837-72840 [2012-29479]
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Notices
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Dated: November 30, 2012.
Tony Miller,
Deputy Secretary of Education.
[FR Doc. 2012–29424 Filed 12–5–12; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF ENERGY
[FE Docket No. 12–156–LNG]
Golden Pass Products LLC;
Application for Long-Term
Authorization To Export Liquefied
Natural Gas Produced From Domestic
Natural Gas Resources to Non-Free
Trade Agreement Countries for a 25Year Period
Sfmt 4703
Office of Fossil Energy, DOE.
Notice of application.
AGENCY:
ACTION:
VII. Agency Contacts
72837
The Office of Fossil Energy
(FE) of the Department of Energy (DOE)
gives notice of receipt of an application
(Application) filed on October 26, 2012,
by Golden Pass Products LLC (GPP),
requesting long-term, multi-contract
authorization to export domestically
produced liquefied natural gas (LNG) in
an amount up to the equivalent of 740
billion cubic feet (Bcf) of domestically
produced natural gas per year, equal to
approximately 15.6 million metric tons
per annum (mtpa), for a period of 25
years beginning on the earlier of the
date of first export or seven years from
the date the authorization is granted by
DOE/FE. The LNG would be exported
from the existing Golden Pass LNG
Terminal (Golden Pass Terminal), a
facility located in Sabine Pass, Texas, to
any country (1) That has or in the future
develops the capacity to import LNG via
ocean-going carrier; (2) with which the
United States does not prohibit trade;
and (3) that does not have a Free Trade
Agreement (FTA) requiring the national
treatment for trade in natural gas (NFTA
country). GPP seeks to export this LNG
on its own behalf and also as agent for
other entities who themselves hold title
to the LNG. The Application was filed
under section 3 of the Natural Gas Act
(NGA). Protests, motions to intervene,
SUMMARY:
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notices of intervention, and written
comments are invited.
DATES: Protests, motions to intervene or
notices of intervention, as applicable,
requests for additional procedures, and
written comments are to be filed using
procedures detailed in the Public
Comment Procedures section no later
than 4:30 p.m., eastern time, February 4,
2013.
ADDRESSES:
Electronic Filing by email:
fergas@hq.doe.gov.
Regular Mail: U.S. Department of
Energy (FE–34), Office of Natural Gas
Regulatory Activities, Office of Fossil
Energy, P.O. Box 44375, Washington,
DC 20026–4375.
Hand Delivery or Private Delivery
Services (e.g., FedEx, UPS, etc.): U.S.
Department of Energy (FE–34), Office of
Natural Gas Regulatory Activities, Office
of Fossil Energy, Forrestal Building,
Room 3E–042, 1000 Independence
Avenue SW., Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT:
Larine Moore or Lisa Tracy, U.S.
Department of Energy (FE–34), Office
of Natural Gas Regulatory Activities,
Office of Fossil Energy, Forrestal
Building, Room 3E–042, 1000
Independence Avenue SW.,
Washington, DC 20585, (202) 586–
9478; (202) 586–4523;
Edward Myers, U.S. Department of
Energy, Office of the Assistant
General Counsel for Electricity and
Fossil Energy, Forrestal Building,
Room 6B–256, 1000 Independence
Avenue SW., Washington, DC 20585,
(202) 586–3397.
SUPPLEMENTARY INFORMATION:
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Background
GPP is a Delaware limited liability
company with its principal place of
business in Houston, Texas. GPP is
owned by QTL U.S. Terminal LLC (an
affiliate of Qatar Petroleum International
Limited), and Golden Pass LNG
Terminal Investments LLC. GPP is
affiliated with Golden Pass LNG
Terminal LLC (GPLNG) and Golden Pass
Pipeline LLC (GPPL). GPP was formed
by affiliates of Qatar Petroleum and
Exxon Mobil Corporation.
GPP states that the Application
represents the second part of a two-part
authorization request to export LNG
from domestic sources. On August 17,
2012, in FE Docket No. 12–88–LNG,
GPP filed with DOE/FE a separate
application for long-term multi-contract
authorization to engage in the export of
LNG in an amount up to 740 million Bcf
per year, to any country with which the
U.S. has or in the future will have an
FTA requiring the national treatment for
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trade in natural gas and LNG; that has
developed, or in the future develops, the
capacity to import LNG; and with which
trade is not prohibited by U.S. law or
policy. DOE/FE subsequently issued an
order in FE Docket No 12–88–LNG
granting long-term export authorization
to FTA countries from the Golden Pass
Terminal.1
GPLNG owns and operates an LNG
import terminal located near Sabine
Pass, in Jefferson County, Texas. GPPL
is an interstate pipeline connected to
the import terminal and regulated by the
Federal Energy Regulatory Commission
(FERC). The GPLNG import terminal is
a receiving facility for LNG imported
from abroad. The import terminal has a
nominal output of 2 Bcf per day (Bcf/
d), with a peak capacity of 2.7 Bcf/d. In
an order issued on July 6, 2005, the
FERC authorized GPLNG under Section
3 of the NGA to site, construct and
operate: (1) A berthing structure and
unloading facilities for LNG ships; (2)
vaporization equipment; (3) five LNG
storage tanks with approximate working
capacity of 155,000 cubic meters (m3)
each; and (4) associated utilities,
infrastructure and facilities required to
send out natural gas from the import
terminal. The July 6, 2005, FERC order
also authorized GPPL to construct and
operate a 70-mile interstate pipeline
system to receive revaporized gas form
the GPLNG import terminal to be
transported to domestic markets. The
import facilities were placed in service
on March 14, 2011.
GPP intends to construct and operate
the GPP export facility contiguous to
and interconnected with the GPLNG
import terminal, for the liquefaction and
export of domestically produced natural
gas. GPP states that it intends to
construct and operate the export
facilities to maximize use of the existing
GPLNG import terminal facilities, with
the intent of preserving full import
capability of the GPLNG import
facilities while also creating new export
capability.
GPP states that domestic gas would be
delivered to the GPP export facility
through GPPL’s existing pipeline. GPP
states that the pipeline would be
modified to flow gas (1) to the GPP
export facility for export to other
countries, or (2) from the GPLNG import
terminal for delivery to interstate and
intrastate markets. GPP also states that
the existing facilities at the import
terminal would be used as part of the
1 Golden Pass Products LLC, Order Granting LongTerm Multi-Contract Authorization to Export
Liquefied Natural Gas by Vessel from the Golden
Pass LNG Terminal to Free Trade Agreement
Nations, DOE/FE Order No. 3147, September 27,
2012 (FE Docket No 12–88–LNG).
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liquefaction project. These facilities
include insulated LNG and gas piping,
ship berthing facilities, and the five
LNG storage tanks and control systems.
In addition, GPP states that it would
construct new facilities to liquefy the
natural gas delivered to the GPP export
project through the pipeline owned by
GPPL.
Current Application
In the instant Application, GPP seeks
long-term, multi-contract authorization
to export LNG in an amount up to the
equivalent of 740 Bcf of domestically
produced natural gas per year, for a
period of 25 years beginning on the
earlier of the date of first export or seven
years from the date the authorization is
granted by DOE/FE. In order to engage
in these exports, GPP requests authority
to: (1) Engage in natural gas purchases
and LNG sales for export, and (2) act as
agent for third parties. In addition, GPP
requests authorization to provide tolling
services for third parties. GPP requests
authorization to export this LNG to any
country with which the United States
does not have an FTA requiring national
treatment for trade in natural gas, that
has, or in the future develops, the
capacity to import LNG, and with which
trade is not prohibited by U.S. law or
policy.
GPP states that it anticipates entering
into one or more long-term agreement to
export LNG that do no exceed the term
requested in the Application. GPP states
that the contracts will provide for GPP
to liquefy natural gas and load it onto
LNG tankers for export. GPP states that
the specific terms of GPP’s future
contracts for liquefaction end
exportation of natural gas will include
provisions governing dates of
commencement and termination,
pricing, volumes, and export
destinations. GPP notes that market
conditions and negotiations will
determine the precise terms of these
contracts. GPP further notes that such
contracts will expressly require that the
export destination be consistent with
GPP’s export authorization from DOE/
FE, and that deliveries shall be reported
to DOE/FE on a monthly basis.
GPP states that customers contracting
with GPP for tolling services will be
responsible for procuring their own gas
supplies and holding title to the gas
delivered to the GPP facility for
liquefaction. GPP states that customers
will be responsible for arranging the
delivery of gas to the terminal. GPP also
states that consistent with prior DOE/FE
orders authorizing export tolling
services, GPP will accept a condition
requiring GPP to register with DOE/FE
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each title holder for whom GPP seeks to
export LNG.2
GPP states that it will file with DOE/
FE any relevant long-term commercial
agreements within thirty days of
execution. GPP states that it will file
either (1) a copy of each long-term
contract with commercially sensitive
information redacted, or (2) a summary
of all major provision of the contract.
GPP states that each of its contract
filings will include a justification for
non-disclosure of any redacted contract
provisions or information.
GPP states that the GPP export facility
will have access to substantial
quantities of natural gas from diverse
domestic supply sources. GPP notes that
the GPP export facility will be located
close to the Onshore Gulf Coast, the
Offshore Gulf of Mexico and the MidContinent producing regions, which
GPP states have long been significant
U.S. natural gas supply areas.
Specifically, GPP states that the export
project is located close to welldeveloped pipeline and transportation
infrastructure. GPP states that the export
facility will be connected, through the
GPPL pipeline, with the interstate
pipeline systems of Florida Gas
Transmission Company, LLC; Golden
Triangle Storage, Inc.; Natural Gas
Pipeline Company of America;
Tennessee Gas Pipeline Company, LLC;
Texas Eastern Transmission, LP; and
Transcontinental Gas Pipeline
Company, LLC. GPP notes that each of
these pipelines in turn has
interconnections with a larger network
of pipeline traversing the Gulf Coast
region.
Lastly, GPP states that it intends to
apply separately to the FERC for
authorization to site, contract and
operate the proposed GPP export facility
under Section 3 of the NGA and Part
153 of the FERC’s regulations.
Public Interest Considerations
GPP states that the requested LNG
export authorization is in the public
interest. GPP states that approval of
GPP’s proposed exports will not impact
the adequacy of domestic production to
meet projected demand over the term of
the requested authorization. GPP further
states that it will contemplate contracts
that will be based on marketcompetitive terms. In addition, GPP
states that it has considered the public
benefits to its proposed exports,
including the impact on U.S. job
creation, U.S. gross domestic product,
2 Freeport LNG Development, L.P., FE Docket No.
11–51–LNG, DOE/FE Order No. 2986 (July 19,
2011); Sabine Pass Liquefaction, LLC, FE Docket
No. 10–111–LNG, DOE/FE Order No. 2961 (May 20,
2011).
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domestic energy security, U.S. trade, as
well as the cumulative impacts of all
LNG projects on the domestic need for
gas. GPP concludes that the proposed
export project is consistent with the
public interest under all of these
considerations.
In support of the Application, GPP
submitted an independent study by The
Perryman Group to help identify the
socioeconomic impacts of GPP’s
proposed export project (TPG Study). In
particular, the TPG Study sought to
quantify the potential gains in business
activity in Jefferson County, Texas, the
location of the terminal. GPP states that
the TPG Study concludes that the
project could create approximately $31
billion in U.S. economic gains at the
local, state and national levels over the
life of the project. Specifically, the
approximately $10 billion investment in
infrastructure to build the facility would
generate: (1) An estimated $20 billion in
national gross product during the fiveyear construction phase, and (2) an
estimated $11 billion in national gross
product from operations, about $460
million annually for the life of the
facility. The TPG Study goes on to
project that the GPP project would
generate tens of thousands of jobs for
American workers across the country
including: (1) 324,000 person-years of
direct and indirect work over the life of
the project; (2) the equivalent of 45,000
jobs nationally during the five-year
construction phase, including 9,000
construction jobs as well as jobs across
a wide spectrum of supporting
industries, including manufacturing,
transportation, and utilities; and (3)
around 3,800 permanent jobs
nationwide during the operation phase,
including more than 200 jobs at the
facility. Lastly, GPP states that the TPG
Study projects cumulative tax revenues
for federal, state, and local governments
totaling about $4.6 billion across the
construction and operating life of the
project.
To further support the Application,
GPP engaged Deloitte MarketPoint
(DMP) to provide a comprehensive
analysis to evaluate the price impact of
GPP’s proposal to export natural gas.
GPP states that the DMP study shows
that exports of 2 Bcf/d from the GPP
project would have less than a 1 percent
effect on long-term annual average
prices, despite an outlook of robust U.S.
gas demand growth. GPP notes that the
DMP study also concluded that the
potential cumulative price effects from
U.S. LNG export projects would be
modest based on the idea that: (1) U.S.
producers currently have access to
abundant domestic natural gas that can
be developed cost-effectively to supply
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72839
both domestic and incremental LNG
export opportunities; (2) only a limited
number of projects will likely reach
completion; and (3) competition for
international markets will serve to
balance the collective growth of U.S.
export developments, further
moderating domestic market
implications.
Additionally, in support of the
Application, GPP cites numerous
studies, statistics, and reports as
prepared by the Energy Information
Administration, MIT, the Brookings
Institution, the American Chemistry
Council, and the U.S. Census Bureau to
demonstrate that the export of LNG and
the approval of this Application are in
the public interest.
Further details can be found in the
Application, which has been posted at
https://www.fe.doe.gov/programs/
gasregulation/.
Environmental Impact
GPP states that the export project will
be designed to minimize or mitigate
environmental or other adverse impacts.
GPP contends that the proposal does not
constitute a major federal action
significantly affecting the quality of
human environment, within the
meaning of the National Environmental
Policy Act (NEPA) of 1969. GPP states
that it plans to file an application with
the FERC for the necessary
authorization to construct and operate
the GPP export facility, and that the
FERC will complete an environmental
review prior to granting the requested
authorization. GPP recognizes that it
cannot engage in the export of LNG
until after the FERC has granted its NGA
section 3 authorization and the
necessary facilities have been
constructed and placed in service. GPP
states that DOE has previously
participated in the FERC’s
environmental review process as a
cooperating agency in other LNG export
projects. Accordingly, GPP requests that
DOE/FE condition the export
authorization requested in this
Application on GGP’s receipt of all
necessary FERC authorizations to
construct and operate the GPP export
facility.
DOE/FE Evaluation
The Application will be reviewed
pursuant to section 3 of the NGA, as
amended, and the authority contained
in DOE Delegation Order No. 00–
002.00L (April 29, 2011) and DOE
Redelegation Order No. 00–002.04E
(April 29, 2011). In reviewing this LNG
export Application, DOE will consider
any issues required by law or policy. To
the extent determined to be relevant or
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appropriate, these issues will include
the impact of LNG exports associated
with this Application, and the
cumulative impact of any other
application(s) previously approved, on
domestic need for the gas proposed for
export, adequacy of domestic natural
gas supply, U.S. energy security, and
any other issues, including the impact
on the U.S. economy (GDP), consumers,
and industry, job creation, U.S. balance
of trade, international considerations,
and whether the arrangement is
consistent with DOE’s policy of
promoting competition in the
marketplace by allowing commercial
parties to freely negotiate their own
trade arrangements. Parties that may
oppose this Application should
comment in their responses on these
issues, as well as any other issues
deemed relevant to the Application.
NEPA requires DOE to give
appropriate consideration to the
environmental effects of its proposed
decisions. No final decision will be
issued in this proceeding until DOE has
met its environmental responsibilities.
Due to the complexity of the issues
raised by the Applicants, interested
persons will be provided 60 days from
the date of publication of this Notice in
which to submit comments, protests,
motions to intervene, notices of
intervention, or motions for additional
procedures.
Public Comment Procedures
In response to this notice, any person
may file a protest, comments, or a
motion to intervene or notice of
intervention, as applicable. Any person
wishing to become a party to the
proceeding must file a motion to
intervene or notice of intervention, as
applicable. The filing of comments or a
protest with respect to the Application
will not serve to make the commenter or
protestant a party to the proceeding,
although protests and comments
received from persons who are not
parties will be considered in
determining the appropriate action to be
taken on the Application. All protests,
comments, motions to intervene or
notices of intervention must meet the
requirements specified by the
regulations in 10 CFR part 590.
Filings may be submitted using one of
the following methods: (1) Emailing the
filing to fergas@hq.doe.gov with FE
Docket No. 12–156–LNG in the title
line; (2) mailing an original and three
paper copies of the filing to the Office
Natural Gas Regulatory Activities at the
address listed in ADDRESSES. The filing
must include a reference to FE Docket
No. 12–156–LNG; or (3) hand delivering
an original and three paper copies of the
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filing to the Office of Natural Gas
Regulatory Activities at the address
listed in ADDRESSES. The filing must
include a reference to FE Docket No.
12–156–LNG.
A decisional record on the
Application will be developed through
responses to this notice by parties,
including the parties’ written comments
and replies thereto. Additional
procedures will be used as necessary to
achieve a complete understanding of the
facts and issues. A party seeking
intervention may request that additional
procedures be provided, such as
additional written comments, an oral
presentation, a conference, or trial-type
hearing. Any request to file additional
written comments should explain why
they are necessary. Any request for an
oral presentation should identify the
substantial question of fact, law, or
policy at issue, show that it is material
and relevant to a decision in the
proceeding, and demonstrate why an
oral presentation is needed. Any request
for a conference should demonstrate
why the conference would materially
advance the proceeding. Any request for
a trial-type hearing must show that there
are factual issues genuinely in dispute
that are relevant and material to a
decision and that a trial-type hearing is
necessary for a full and true disclosure
of the facts.
If an additional procedure is
scheduled, notice will be provided to all
parties. If no party requests additional
procedures, a final Opinion and Order
may be issued based on the official
record, including the Application and
responses filed by parties pursuant to
this Notice, in accordance with 10 CFR
590.316.
The Application filed by GPP is
available for inspection and copying in
the Office of Natural Gas Regulatory
Activities docket room, Room 3E–042,
1000 Independence Avenue SW.,
Washington, DC 20585. The docket
room is open between the hours of 8:00
a.m. and 4:30 p.m., Monday through
Friday, except Federal holidays. The
Application and any filed protests,
motions to intervene or notice of
interventions, and comments will also
be available electronically by going to
the following DOE/FE Web address:
https://www.fe.doe.gov/programs/
gasregulation/.
Issued in Washington, DC, on November
30, 2012.
John A. Anderson,
Manager, Natural Gas Regulatory Activities,
Office of Oil and Gas Global Security and
Supply, Office of Fossil Energy.
[FR Doc. 2012–29479 Filed 12–5–12; 8:45 am]
BILLING CODE 6450–01–P
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DEPARTMENT OF ENERGY
[FE Docket No. 12–123–LNG]
CE FLNG, LLC; Application for LongTerm Authorization To Export
Liquefied Natural Gas Produced From
Domestic Natural Gas Resources to
Non-Free Trade Agreement Countries
for a 30-Year Period
Office of Fossil Energy, DOE.
Notice of application.
AGENCY:
ACTION:
The Office of Fossil Energy
(FE) of the Department of Energy (DOE)
gives notice of receipt of an application
(Application) filed on September 21,
2012, by CE FLNG, LLC (CE FLNG),
requesting long-term, multi-contract
authorization to export up to 8 million
tons per annum (mtpa) of domestically
produced liquefied natural gas (LNG),
the equivalent of about 391 billion cubic
feet (Bcf) of natural gas per year, or 1.07
Bcf per day (Bcf/d), over a 30-year
period, commencing on the earlier of
the date of first export or ten years from
the date the requested authorization is
granted. The LNG would be exported
from the proposed CE FLNG LNG
terminal in Plaquemines Parish,
Louisiana, (Project) to any country (1)
With which the United States does not
have a free trade agreement (FTA)
requiring national treatment for trade in
natural gas, (2) which has developed or
in the future develops the capacity to
import LNG via ocean-going carrier, and
(3) with which trade is not prohibited
by U.S. law or policy. The source of the
natural gas will be from direct connects
with the interstate pipelines of
Tennessee 500 leg, SONAT,
Transcontinental, Gulf South and
several intrastate pipelines in Louisiana.
CE FLNG anticipates that it will need to
extend pipeline approximately 100
miles to connect to the proposed
Project. CE FLNG anticipates that
sources of natural gas will include
Texas and Louisiana producing regions
and the offshore gulf producing regions,
with CE FLNG’s primary source of
natural gas coming from the Gulf of
Mexico rather than from shale gas plays.
CE FLNG is requesting this
authorization to export LNG both on its
own behalf and as agent for other parties
who hold title to the LNG at the point
of export. The Application was filed
under section 3 of the Natural Gas Act
(NGA). Protests, motions to intervene,
notices of intervention, and written
comments are invited.
DATES: Protests, motions to intervene or
notices of intervention, as applicable,
requests for additional procedures, and
written comments are to be filed using
SUMMARY:
E:\FR\FM\06DEN1.SGM
06DEN1
]]>Agencies
[Federal Register Volume 77, Number 235 (Thursday, December 6, 2012)]
[Notices]
[Pages 72837-72840]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29479]
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DEPARTMENT OF ENERGY
[FE Docket No. 12-156-LNG]
Golden Pass Products LLC; Application for Long-Term Authorization
To Export Liquefied Natural Gas Produced From Domestic Natural Gas
Resources to Non-Free Trade Agreement Countries for a 25-Year Period
AGENCY: Office of Fossil Energy, DOE.
ACTION: Notice of application.
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SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy
(DOE) gives notice of receipt of an application (Application) filed on
October 26, 2012, by Golden Pass Products LLC (GPP), requesting long-
term, multi-contract authorization to export domestically produced
liquefied natural gas (LNG) in an amount up to the equivalent of 740
billion cubic feet (Bcf) of domestically produced natural gas per year,
equal to approximately 15.6 million metric tons per annum (mtpa), for a
period of 25 years beginning on the earlier of the date of first export
or seven years from the date the authorization is granted by DOE/FE.
The LNG would be exported from the existing Golden Pass LNG Terminal
(Golden Pass Terminal), a facility located in Sabine Pass, Texas, to
any country (1) That has or in the future develops the capacity to
import LNG via ocean-going carrier; (2) with which the United States
does not prohibit trade; and (3) that does not have a Free Trade
Agreement (FTA) requiring the national treatment for trade in natural
gas (NFTA country). GPP seeks to export this LNG on its own behalf and
also as agent for other entities who themselves hold title to the LNG.
The Application was filed under section 3 of the Natural Gas Act (NGA).
Protests, motions to intervene,
[[Page 72838]]
notices of intervention, and written comments are invited.
DATES: Protests, motions to intervene or notices of intervention, as
applicable, requests for additional procedures, and written comments
are to be filed using procedures detailed in the Public Comment
Procedures section no later than 4:30 p.m., eastern time, February 4,
2013.
ADDRESSES:
Electronic Filing by email: fergas@hq.doe.gov.
Regular Mail: U.S. Department of Energy (FE-34), Office of Natural
Gas Regulatory Activities, Office of Fossil Energy, P.O. Box 44375,
Washington, DC 20026-4375.
Hand Delivery or Private Delivery Services (e.g., FedEx, UPS,
etc.): U.S. Department of Energy (FE-34), Office of Natural Gas
Regulatory Activities, Office of Fossil Energy, Forrestal Building,
Room 3E-042, 1000 Independence Avenue SW., Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT:
Larine Moore or Lisa Tracy, U.S. Department of Energy (FE-34), Office
of Natural Gas Regulatory Activities, Office of Fossil Energy,
Forrestal Building, Room 3E-042, 1000 Independence Avenue SW.,
Washington, DC 20585, (202) 586-9478; (202) 586-4523;
Edward Myers, U.S. Department of Energy, Office of the Assistant
General Counsel for Electricity and Fossil Energy, Forrestal Building,
Room 6B-256, 1000 Independence Avenue SW., Washington, DC 20585, (202)
586-3397.
SUPPLEMENTARY INFORMATION:
Background
GPP is a Delaware limited liability company with its principal
place of business in Houston, Texas. GPP is owned by QTL U.S. Terminal
LLC (an affiliate of Qatar Petroleum International Limited), and Golden
Pass LNG Terminal Investments LLC. GPP is affiliated with Golden Pass
LNG Terminal LLC (GPLNG) and Golden Pass Pipeline LLC (GPPL). GPP was
formed by affiliates of Qatar Petroleum and Exxon Mobil Corporation.
GPP states that the Application represents the second part of a
two-part authorization request to export LNG from domestic sources. On
August 17, 2012, in FE Docket No. 12-88-LNG, GPP filed with DOE/FE a
separate application for long-term multi-contract authorization to
engage in the export of LNG in an amount up to 740 million Bcf per
year, to any country with which the U.S. has or in the future will have
an FTA requiring the national treatment for trade in natural gas and
LNG; that has developed, or in the future develops, the capacity to
import LNG; and with which trade is not prohibited by U.S. law or
policy. DOE/FE subsequently issued an order in FE Docket No 12-88-LNG
granting long-term export authorization to FTA countries from the
Golden Pass Terminal.\1\
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\1\ Golden Pass Products LLC, Order Granting Long-Term Multi-
Contract Authorization to Export Liquefied Natural Gas by Vessel
from the Golden Pass LNG Terminal to Free Trade Agreement Nations,
DOE/FE Order No. 3147, September 27, 2012 (FE Docket No 12-88-LNG).
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GPLNG owns and operates an LNG import terminal located near Sabine
Pass, in Jefferson County, Texas. GPPL is an interstate pipeline
connected to the import terminal and regulated by the Federal Energy
Regulatory Commission (FERC). The GPLNG import terminal is a receiving
facility for LNG imported from abroad. The import terminal has a
nominal output of 2 Bcf per day (Bcf/d), with a peak capacity of 2.7
Bcf/d. In an order issued on July 6, 2005, the FERC authorized GPLNG
under Section 3 of the NGA to site, construct and operate: (1) A
berthing structure and unloading facilities for LNG ships; (2)
vaporization equipment; (3) five LNG storage tanks with approximate
working capacity of 155,000 cubic meters (m\3\) each; and (4)
associated utilities, infrastructure and facilities required to send
out natural gas from the import terminal. The July 6, 2005, FERC order
also authorized GPPL to construct and operate a 70-mile interstate
pipeline system to receive revaporized gas form the GPLNG import
terminal to be transported to domestic markets. The import facilities
were placed in service on March 14, 2011.
GPP intends to construct and operate the GPP export facility
contiguous to and interconnected with the GPLNG import terminal, for
the liquefaction and export of domestically produced natural gas. GPP
states that it intends to construct and operate the export facilities
to maximize use of the existing GPLNG import terminal facilities, with
the intent of preserving full import capability of the GPLNG import
facilities while also creating new export capability.
GPP states that domestic gas would be delivered to the GPP export
facility through GPPL's existing pipeline. GPP states that the pipeline
would be modified to flow gas (1) to the GPP export facility for export
to other countries, or (2) from the GPLNG import terminal for delivery
to interstate and intrastate markets. GPP also states that the existing
facilities at the import terminal would be used as part of the
liquefaction project. These facilities include insulated LNG and gas
piping, ship berthing facilities, and the five LNG storage tanks and
control systems. In addition, GPP states that it would construct new
facilities to liquefy the natural gas delivered to the GPP export
project through the pipeline owned by GPPL.
Current Application
In the instant Application, GPP seeks long-term, multi-contract
authorization to export LNG in an amount up to the equivalent of 740
Bcf of domestically produced natural gas per year, for a period of 25
years beginning on the earlier of the date of first export or seven
years from the date the authorization is granted by DOE/FE. In order to
engage in these exports, GPP requests authority to: (1) Engage in
natural gas purchases and LNG sales for export, and (2) act as agent
for third parties. In addition, GPP requests authorization to provide
tolling services for third parties. GPP requests authorization to
export this LNG to any country with which the United States does not
have an FTA requiring national treatment for trade in natural gas, that
has, or in the future develops, the capacity to import LNG, and with
which trade is not prohibited by U.S. law or policy.
GPP states that it anticipates entering into one or more long-term
agreement to export LNG that do no exceed the term requested in the
Application. GPP states that the contracts will provide for GPP to
liquefy natural gas and load it onto LNG tankers for export. GPP states
that the specific terms of GPP's future contracts for liquefaction end
exportation of natural gas will include provisions governing dates of
commencement and termination, pricing, volumes, and export
destinations. GPP notes that market conditions and negotiations will
determine the precise terms of these contracts. GPP further notes that
such contracts will expressly require that the export destination be
consistent with GPP's export authorization from DOE/FE, and that
deliveries shall be reported to DOE/FE on a monthly basis.
GPP states that customers contracting with GPP for tolling services
will be responsible for procuring their own gas supplies and holding
title to the gas delivered to the GPP facility for liquefaction. GPP
states that customers will be responsible for arranging the delivery of
gas to the terminal. GPP also states that consistent with prior DOE/FE
orders authorizing export tolling services, GPP will accept a condition
requiring GPP to register with DOE/FE
[[Page 72839]]
each title holder for whom GPP seeks to export LNG.\2\
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\2\ Freeport LNG Development, L.P., FE Docket No. 11-51-LNG,
DOE/FE Order No. 2986 (July 19, 2011); Sabine Pass Liquefaction,
LLC, FE Docket No. 10-111-LNG, DOE/FE Order No. 2961 (May 20, 2011).
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GPP states that it will file with DOE/FE any relevant long-term
commercial agreements within thirty days of execution. GPP states that
it will file either (1) a copy of each long-term contract with
commercially sensitive information redacted, or (2) a summary of all
major provision of the contract. GPP states that each of its contract
filings will include a justification for non-disclosure of any redacted
contract provisions or information.
GPP states that the GPP export facility will have access to
substantial quantities of natural gas from diverse domestic supply
sources. GPP notes that the GPP export facility will be located close
to the Onshore Gulf Coast, the Offshore Gulf of Mexico and the Mid-
Continent producing regions, which GPP states have long been
significant U.S. natural gas supply areas. Specifically, GPP states
that the export project is located close to well-developed pipeline and
transportation infrastructure. GPP states that the export facility will
be connected, through the GPPL pipeline, with the interstate pipeline
systems of Florida Gas Transmission Company, LLC; Golden Triangle
Storage, Inc.; Natural Gas Pipeline Company of America; Tennessee Gas
Pipeline Company, LLC; Texas Eastern Transmission, LP; and
Transcontinental Gas Pipeline Company, LLC. GPP notes that each of
these pipelines in turn has interconnections with a larger network of
pipeline traversing the Gulf Coast region.
Lastly, GPP states that it intends to apply separately to the FERC
for authorization to site, contract and operate the proposed GPP export
facility under Section 3 of the NGA and Part 153 of the FERC's
regulations.
Public Interest Considerations
GPP states that the requested LNG export authorization is in the
public interest. GPP states that approval of GPP's proposed exports
will not impact the adequacy of domestic production to meet projected
demand over the term of the requested authorization. GPP further states
that it will contemplate contracts that will be based on market-
competitive terms. In addition, GPP states that it has considered the
public benefits to its proposed exports, including the impact on U.S.
job creation, U.S. gross domestic product, domestic energy security,
U.S. trade, as well as the cumulative impacts of all LNG projects on
the domestic need for gas. GPP concludes that the proposed export
project is consistent with the public interest under all of these
considerations.
In support of the Application, GPP submitted an independent study
by The Perryman Group to help identify the socioeconomic impacts of
GPP's proposed export project (TPG Study). In particular, the TPG Study
sought to quantify the potential gains in business activity in
Jefferson County, Texas, the location of the terminal. GPP states that
the TPG Study concludes that the project could create approximately $31
billion in U.S. economic gains at the local, state and national levels
over the life of the project. Specifically, the approximately $10
billion investment in infrastructure to build the facility would
generate: (1) An estimated $20 billion in national gross product during
the five-year construction phase, and (2) an estimated $11 billion in
national gross product from operations, about $460 million annually for
the life of the facility. The TPG Study goes on to project that the GPP
project would generate tens of thousands of jobs for American workers
across the country including: (1) 324,000 person-years of direct and
indirect work over the life of the project; (2) the equivalent of
45,000 jobs nationally during the five-year construction phase,
including 9,000 construction jobs as well as jobs across a wide
spectrum of supporting industries, including manufacturing,
transportation, and utilities; and (3) around 3,800 permanent jobs
nationwide during the operation phase, including more than 200 jobs at
the facility. Lastly, GPP states that the TPG Study projects cumulative
tax revenues for federal, state, and local governments totaling about
$4.6 billion across the construction and operating life of the project.
To further support the Application, GPP engaged Deloitte
MarketPoint (DMP) to provide a comprehensive analysis to evaluate the
price impact of GPP's proposal to export natural gas. GPP states that
the DMP study shows that exports of 2 Bcf/d from the GPP project would
have less than a 1 percent effect on long-term annual average prices,
despite an outlook of robust U.S. gas demand growth. GPP notes that the
DMP study also concluded that the potential cumulative price effects
from U.S. LNG export projects would be modest based on the idea that:
(1) U.S. producers currently have access to abundant domestic natural
gas that can be developed cost-effectively to supply both domestic and
incremental LNG export opportunities; (2) only a limited number of
projects will likely reach completion; and (3) competition for
international markets will serve to balance the collective growth of
U.S. export developments, further moderating domestic market
implications.
Additionally, in support of the Application, GPP cites numerous
studies, statistics, and reports as prepared by the Energy Information
Administration, MIT, the Brookings Institution, the American Chemistry
Council, and the U.S. Census Bureau to demonstrate that the export of
LNG and the approval of this Application are in the public interest.
Further details can be found in the Application, which has been
posted at https://www.fe.doe.gov/programs/gasregulation/.
Environmental Impact
GPP states that the export project will be designed to minimize or
mitigate environmental or other adverse impacts. GPP contends that the
proposal does not constitute a major federal action significantly
affecting the quality of human environment, within the meaning of the
National Environmental Policy Act (NEPA) of 1969. GPP states that it
plans to file an application with the FERC for the necessary
authorization to construct and operate the GPP export facility, and
that the FERC will complete an environmental review prior to granting
the requested authorization. GPP recognizes that it cannot engage in
the export of LNG until after the FERC has granted its NGA section 3
authorization and the necessary facilities have been constructed and
placed in service. GPP states that DOE has previously participated in
the FERC's environmental review process as a cooperating agency in
other LNG export projects. Accordingly, GPP requests that DOE/FE
condition the export authorization requested in this Application on
GGP's receipt of all necessary FERC authorizations to construct and
operate the GPP export facility.
DOE/FE Evaluation
The Application will be reviewed pursuant to section 3 of the NGA,
as amended, and the authority contained in DOE Delegation Order No. 00-
002.00L (April 29, 2011) and DOE Redelegation Order No. 00-002.04E
(April 29, 2011). In reviewing this LNG export Application, DOE will
consider any issues required by law or policy. To the extent determined
to be relevant or
[[Page 72840]]
appropriate, these issues will include the impact of LNG exports
associated with this Application, and the cumulative impact of any
other application(s) previously approved, on domestic need for the gas
proposed for export, adequacy of domestic natural gas supply, U.S.
energy security, and any other issues, including the impact on the U.S.
economy (GDP), consumers, and industry, job creation, U.S. balance of
trade, international considerations, and whether the arrangement is
consistent with DOE's policy of promoting competition in the
marketplace by allowing commercial parties to freely negotiate their
own trade arrangements. Parties that may oppose this Application should
comment in their responses on these issues, as well as any other issues
deemed relevant to the Application.
NEPA requires DOE to give appropriate consideration to the
environmental effects of its proposed decisions. No final decision will
be issued in this proceeding until DOE has met its environmental
responsibilities.
Due to the complexity of the issues raised by the Applicants,
interested persons will be provided 60 days from the date of
publication of this Notice in which to submit comments, protests,
motions to intervene, notices of intervention, or motions for
additional procedures.
Public Comment Procedures
In response to this notice, any person may file a protest,
comments, or a motion to intervene or notice of intervention, as
applicable. Any person wishing to become a party to the proceeding must
file a motion to intervene or notice of intervention, as applicable.
The filing of comments or a protest with respect to the Application
will not serve to make the commenter or protestant a party to the
proceeding, although protests and comments received from persons who
are not parties will be considered in determining the appropriate
action to be taken on the Application. All protests, comments, motions
to intervene or notices of intervention must meet the requirements
specified by the regulations in 10 CFR part 590.
Filings may be submitted using one of the following methods: (1)
Emailing the filing to fergas@hq.doe.gov with FE Docket No. 12-156-LNG
in the title line; (2) mailing an original and three paper copies of
the filing to the Office Natural Gas Regulatory Activities at the
address listed in ADDRESSES. The filing must include a reference to FE
Docket No. 12-156-LNG; or (3) hand delivering an original and three
paper copies of the filing to the Office of Natural Gas Regulatory
Activities at the address listed in ADDRESSES. The filing must include
a reference to FE Docket No. 12-156-LNG.
A decisional record on the Application will be developed through
responses to this notice by parties, including the parties' written
comments and replies thereto. Additional procedures will be used as
necessary to achieve a complete understanding of the facts and issues.
A party seeking intervention may request that additional procedures be
provided, such as additional written comments, an oral presentation, a
conference, or trial-type hearing. Any request to file additional
written comments should explain why they are necessary. Any request for
an oral presentation should identify the substantial question of fact,
law, or policy at issue, show that it is material and relevant to a
decision in the proceeding, and demonstrate why an oral presentation is
needed. Any request for a conference should demonstrate why the
conference would materially advance the proceeding. Any request for a
trial-type hearing must show that there are factual issues genuinely in
dispute that are relevant and material to a decision and that a trial-
type hearing is necessary for a full and true disclosure of the facts.
If an additional procedure is scheduled, notice will be provided to
all parties. If no party requests additional procedures, a final
Opinion and Order may be issued based on the official record, including
the Application and responses filed by parties pursuant to this Notice,
in accordance with 10 CFR 590.316.
The Application filed by GPP is available for inspection and
copying in the Office of Natural Gas Regulatory Activities docket room,
Room 3E-042, 1000 Independence Avenue SW., Washington, DC 20585. The
docket room is open between the hours of 8:00 a.m. and 4:30 p.m.,
Monday through Friday, except Federal holidays. The Application and any
filed protests, motions to intervene or notice of interventions, and
comments will also be available electronically by going to the
following DOE/FE Web address: https://www.fe.doe.gov/programs/gasregulation/.
Issued in Washington, DC, on November 30, 2012.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas
Global Security and Supply, Office of Fossil Energy.
[FR Doc. 2012-29479 Filed 12-5-12; 8:45 am]
BILLING CODE 6450-01-P
