Delfin LNG LLC; Request for Supplemental Order Granting Conditional Extension of Time for Long-Term Authorization To Export Liquefied Natural Gas, 22137-22139 [2024-06703]
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Federal Register / Vol. 89, No. 62 / Friday, March 29, 2024 / Notices
purchase the power it plans to export
voluntarily through the electric energy
markets in the United States and/or
from electric utilities, wholesale
generators, power marketers and other
parties, and thus such power will be
surplus to the needs of the selling
parties or organization.’’ Id. at 4. CP
Energy Marketing also states it ‘‘will
make all necessary commercial
arrangements and will obtain any and
all other regulatory approvals required
in order to carry out any power
exports.’’ Id. CP Energy Marketing
asserts its ‘‘export of power will not
impair or tend to impede the sufficiency
of electric power supplies in the United
States or the regional coordination of
electric utility planning or operation. Id.
The existing international
transmission facilities to be utilized by
the Applicant have been previously
authorized by Presidential permits
issued pursuant to Executive Order
10485, as amended, and are appropriate
for open access transmission by third
parties. See App. at Exhibit C.
Procedural Matters: Any person
desiring to be heard in this proceeding
should file a comment or protest to the
Application at Electricity.Exports@
hq.doe.gov. Protests should be filed in
accordance with Rule 211 of FERC’s
Rules of Practice and Procedure (18 CFR
385.211). Any person desiring to
become a party to this proceeding
should file a motion to intervene at
Electricity.Exports@hq.doe.gov in
accordance with FERC Rule 214 (18 CFR
385.214).
Comments and other filings
concerning CP Energy Marketing’s
Application should be clearly marked
with GDO Docket No. EA–260–G.
Additional copies are to be provided
directly to Colleen Smith, CP Energy
Marketing (US) Inc. c/o Capital Power
Corporation, 155 Federal Street, Suite
1200, Boston, MA 02110, notices@
captialpower.com, and Peter P. Thieman
and Clarence R. Hawkes III, Dentons US
LLP, 1900 K Street NW, Washington, DC
20006, peter.thieman@dentons.com,
clarence.hawkes@dentons.com.
A final decision will be made on the
requested authorization after the
environmental impacts have been
evaluated pursuant to DOE’s National
Environmental Policy Act Implementing
Procedures (10 CFR part 1021) and after
DOE evaluates whether the proposed
action will have an adverse impact on
the sufficiency of supply or reliability of
the United States electric power supply
system.
Copies of this Application will be
made available, upon request, by
accessing the program website at
https://www.energy.gov/gdo/pending-
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applications-0 or by emailing
Electricity.Exports@hq.doe.gov.
Signing Authority: This document of
the Department of Energy was signed on
March 25, 2024, by Maria Robinson,
Director, Grid Deployment Office,
pursuant to delegated authority from the
Secretary of Energy. That document
with the original signature and date is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
Signed in Washington, DC on March 26,
2024.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2024–06733 Filed 3–28–24; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF ENERGY
[Docket No. 13–147–LNG]
Delfin LNG LLC; Request for
Supplemental Order Granting
Conditional Extension of Time for
Long-Term Authorization To Export
Liquefied Natural Gas
Office of Fossil Energy and
Carbon Management, Department of
Energy.
ACTION: Notice of request.
AGENCY:
The Office of Fossil Energy
and Carbon Management (FECM) of the
Department of Energy (DOE), formerly
the Office of Fossil Energy (FE), gives
notice (Notice) of receipt of a request
(Request), filed by Delfin LNG LLC
(Delfin) on March 1, 2024. Delfin
requests a supplemental order
modifying its authorization to export
domestically produced liquefied natural
gas (LNG) to non-free trade agreement
countries set forth in DOE/FE Order No.
4028, as amended, to allow Delfin to
commence export operations from the
proposed Delfin Deepwater Port by no
later than June 1, 2029—a five-year
extension from its existing
commencement deadline. Delfin
proposes that this extension of time
should be conditional, with Delfin
required to meet the proposed
conditions within a period of nine
months. Delfin filed the Request under
the Natural Gas Act (NGA) and pursuant
SUMMARY:
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to DOE’s Policy Statement on Export
Commencement Deadlines in
Authorizations to Export Natural Gas to
Non-Free Trade Agreement Countries.
Protests, motions to intervene, notices of
intervention, and written comments are
invited.
DATES: Protests, motions to intervene, or
notices of intervention, as applicable,
and written comments are to be filed as
detailed in the Public Comment
Procedures section no later than 4:30
p.m., eastern time, April 29, 2024.
ADDRESSES:
Electronic Filing by email (Strongly
encouraged): fergas@hq.doe.gov.
Postal Mail, Hand Delivery, or Private
Delivery Services (e.g., FedEx, UPS,
etc.), U.S. Department of Energy (FE–
34), Office of Regulation, Analysis, and
Engagement, Office of Fossil Energy and
Carbon Management, Forrestal Building,
Room 3E–056, 1000 Independence
Avenue SW, Washington, DC 20585.
Due to potential delays in DOE’s
receipt and processing of mail sent
through the U.S. Postal Service, we
encourage respondents to submit filings
electronically to ensure timely receipt.
FOR FURTHER INFORMATION CONTACT:
Jennifer Wade or Peri Ulrey, U.S.
Department of Energy (FE–34), Office
of Regulation, Analysis, and
Engagement, Office of Resource
Sustainability, Office of Fossil Energy
and Carbon Management, Forrestal
Building, Room 3E–042, 1000
Independence Avenue SW,
Washington, DC 20585, (202) 586–
4749 or (202) 586–7893,
jennifer.wade@hq.doe.gov or
peri.ulrey@hq.doe.gov
Cassandra Bernstein, U.S. Department of
Energy (GC–76), Office of the
Assistant General Counsel for Energy
Delivery and Resilience, Forrestal
Building, Room 6D–033, 1000
Independence Avenue SW,
Washington, DC 20585, (240) 780–
1691, cassandra.bernstein@
hq.doe.gov
SUPPLEMENTARY INFORMATION:
Background
On June 1, 2017, in DOE/FE Order No.
4028 (as amended),1 DOE authorized
Delfin to export domestically produced
LNG by vessel from the proposed Delfin
1 Delfin LNG LLC, DOE/FE Order No. 4028,
Docket No. 13–147–LNG (June 1, 2017), reh’g
denied, Order No. 4028–A (Apr. 3, 2018), amended
by Order No. 4028–B (Dec. 10, 2020) (extending
export term), further amended by Order No. 4028–
C (May 18, 2021) (correcting and amending location
of floating LNG vessels). In addition, Delfin’s export
authorization was amended by DOE/FE Order No.
4641 (Dec. 18, 2020) to include short-term export
authority on a non-additive basis.
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Federal Register / Vol. 89, No. 62 / Friday, March 29, 2024 / Notices
Liquefaction Project (Project), a floating
liquefaction facility to be located in the
Gulf of Mexico off the coast of Cameron
Parish, Louisiana, to any country with
which the United States has not entered
into a free trade agreement (FTA)
requiring national treatment for trade in
natural gas, which currently has or in
the future develops the capacity to
import LNG, and with which trade is
not prohibited by U.S. law or policy
(non-FTA countries).2 Delfin is
authorized to export this LNG in a
volume equivalent to 657.5 billion cubic
feet per year of natural gas for a term
extending through December 31, 2050.3
Because Delfin’s Project will be a
‘‘deepwater port’’ within the meaning of
the Deepwater Port Act of 1974, as
amended (DWPA), 33 U.S.C. 1501 et
seq., the Project requires a deepwater
port license from the U.S. Department of
Transportation Maritime Administration
(MARAD), in conjunction with the U.S.
Coast Guard.4 In the Request, Delfin
explains that, although it has received a
favorable Record of Decision from
MARAD, it has been waiting for ‘‘nearly
two years’’ for MARAD to issue a final
deepwater license authorizing the
operation of Delfin’s offshore facilities.5
Delfin’s Project also involves certain
onshore components that required the
authorization of the Federal Energy
Regulatory Commission (FERC), which
Delfin received in 2017.6 Delfin states
that, on October 4, 2023, it obtained an
extension from FERC of the deadline to
construct and place its onshore facilities
into service—from September 28, 2023,
to September 28, 2027.7
As relevant here, Order No. 4028
requires Delfin to ‘‘commence export
operations using the planned
liquefaction facilities no later than
seven years from the date of issuance of
[the] Order’’—i.e., by June 1, 2024.8
2 15
U.S.C. 717b(a).
LNG LLC, DOE/FE Order No. 4028, as
amended in Order No. 4028–B (Ordering Para. A).
4 For more information on MARAD’s deepwater
port licensing, see Delfin LNG LLC, DOE/FE Order
No. 4028, at 1–3, 126–35 (summarizing MARAD’s
process and Delfin’s status at that time), 173
(Ordering Para. H), and Request at 5, 22–27.
5 See Request at 2, 22–26.
6 For more information on FERC’s jurisdiction
over limited onshore components of the Project, see
Delfin LNG LLC, DOE/FE Order No. 4028, at 2–3,
173 (Ordering Para. H), and Request at 6 n.9, 7 n.12,
8 n.13.
7 See Request at 6 n.9, 26–27 (citing Delfin LNG
LLC, 185 FERC ¶ 61,009 (2023)).
8 Delfin LNG LLC, DOE/FE Order No. 4028, at 173
(Ordering Para. D). Additionally, Delfin asks DOE
to amend its existing FTA authorization (DOE/FE
Order No. 3393, as amended). DOE will address the
FTA portion of the Request separately pursuant to
NGA section 3(c), 15 U.S.C. 717b(c).
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3 Delfin
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Request for Conditional Extension
In its Request, Delfin asks DOE to
issue a supplemental order that would
‘‘modify’’ Order No. 4028 to provide
Delfin a five-year ‘‘conditional
extension of time’’ for Delfin to
commence export operations from the
Project—from June 1, 2024, to June 1,
2029.9 Delfin states that this Request is
consistent with DOE’s Policy Statement
on Export Commencement Deadlines
(Commencement Extension Policy)
issued on April 26, 2023.10
Specifically, Delfin proposes that DOE
‘‘grant only a conditional extension that
requires Delfin to certify by no later
than nine (9) months after DOE/FECM’s
order that it has: (1) obtained the final
DWPA license (to the extent that this
has not occurred prior to DOE/FECM
granting the conditional extension); (2)
secured necessary financing
arrangements to construct its first
FLNGV [floating LNG vessel] and the
Deepwater Port; (3) made its positive
FID [Final Investment Decision] with
respect to first FLNGV; and (4) issued an
unconditional, full NTP [Notice to
Proceed] for first FLNGV to the EPCI
[Engineering, Procurement,
Construction and Integration] contractor
pursuant to the binding, executed EPCI
contract.’’ 11
Delfin states that, although it ‘‘is
confident in its ability to satisfy those
conditions within the requested time
period, should it fail to do so then the
export authorizations would expire at
the end of that period.’’ 12 Delfin further
contends that ‘‘imposition by DOE/
FECM of these conditions on the
extension of time will eliminate soon
any uncertainty about the status of
Delfin’s project, providing assurance to
DOE (and all other stakeholders and
interested observers) that Delfin will
actually commence LNG exports by the
extended deadline.’’ 13 Delfin thus
asserts that its Request ‘‘satisf[ies] the
9 Delfin LNG LLC, Request for Supplemental
Order Granting Conditional Extension of Time for
Long-Term Authorizations to Export Liquefied
Natural Gas, Docket No. 13–147–LNG, at 32, 43
(Mar. 1, 2024) [hereinafter Request]. Delfin states
that it is not seeking to modify any other aspect of
its Project or non-FTA authorization. See id. at 2.
10 U.S. Dep’t of Energy, Policy Statement on
Export Commencement Deadlines in Authorizations
to Export Natural Gas to Non-Free Trade Agreement
Countries, 88 FR 25272 (Apr. 26, 2023), https://
www.energy.gov/sites/default/files/2023-06/
Policy%20Statement%20on
%20Export%20Commencement%20
Deadlines%20in%20Authorizations
%20to%20Export%20Natural%20Gas%20to%20
Non-Free%20Trade%20Agreement
%20Countries.pdf [hereinafter Commencement
Extension Policy].
11 Request at 5; see also id. at 37.
12 Id. at 5.
13 Id. at 5–6.
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Fmt 4703
Sfmt 4703
objective of the Commencement
Extension Policy of reducing the
‘regulatory overhang’ between
authorized export volumes and projects
actually moving forward.’’ 14
In support of its Request, Delfin
asserts that good cause exists to grant
the requested conditional extension of
time, and that Delfin’s authorized
exports remain in the public interest.
Delfin also states that it meets the
criteria established by DOE in the
Commencement Extension Policy for
such requests. Specifically, Delfin
argues that its Project ‘‘has been delayed
by a series of extenuating circumstances
outside its control,’’ 15 and that ‘‘[m]uch
of the infrastructure for [the Project] has
already been constructed and is in
existence, namely the large offshore
natural gas pipelines that will transport
feed gas to the FLNGVs.’’ 16
Additionally, Delfin distinguishes its
floating offshore Project from ‘‘the landbased LNG export projects holding all
other non-FTA authorizations.’’ 17
Delfin states that ‘‘the key part’’ of its
Project, the FLNGVs, ‘‘will be
constructed in existing shipyards
overseas.’’ 18 Delfin describes both its
commercial progress to date for the
FLNGV construction and the remaining
steps needed to reach FID.19
Delfin states that, because it is not
requesting an extension of its export
term under Order No. 4028, as amended
(which ends on December 31, 2050), or
an increase in its authorized export
volume, ‘‘the result of the extension will
be that Delfin will have five years fewer
to export LNG for a significant decrease
in the total volumes of LNG exports
under the authorization than was
previously authorized.’’ 20
Finally, Delfin asks DOE to grant the
Request by its existing export
commencement deadline of June 1,
2024. If DOE is unable to act on the
Request by this date, Delfin asks DOE to
‘‘toll’’ the existing June 1, 2024, export
commencement deadline in Order No.
4028 in light of the pending Request, so
that ‘‘the existing non-FTA
authorization would not expire and
DOE/FECM could subsequently grant
the conditional extension
14 Id.
at 6.
at 3–4 (citing, e.g., ‘‘the continuing
evolution of FLNGV technology requiring a series
of refinements of the project, complications related
to trade with China, the impacts of the COVID–19
epidemic, the related slowdown in market demand
for LNG, and significant challenges with the
MARAD licensing process’’).
16 Request at 4; see also id. at 11–16.
17 Id. at 4.
18 Id.
19 Id. at 4, 16–22, 27–31.
20 Id. at 33.
15 Id.
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Federal Register / Vol. 89, No. 62 / Friday, March 29, 2024 / Notices
notwithstanding passage of the preexisting deadline.’’ 21
Additional details can be found in the
Request, posted on the DOE website at:
www.energy.gov/sites/default/files/
2024-03/Delfin%20DOE%20
Extension%20request%20%28030124
%20FINAL%29.pdf.
DOE Evaluation
In reviewing Delfin’s Request, DOE
will consider any issues required by law
or policy under NGA section 3(a), DOE’s
regulations, DOE’s Commencement
Extension Policy, and any other
documents deemed appropriate.
Parties that may oppose the Request
should address these issues and
documents in their comments and/or
protests, as well as other issues deemed
relevant to the Request.
The National Environmental Policy
Act (NEPA), 42 U.S.C. 4321 et seq.,
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.
Public Comment Procedures
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In response to this Notice, any person
may file a protest, comments, or a
motion to intervene or notice of
intervention, as applicable, addressing
the Request. Interested parties will be
provided 30 days from the date of
publication of this Notice in which to
submit comments, protests, motions to
intervene, or notices of intervention.
The public previously was given an
opportunity to intervene in, protest, and
comment on Delfin’s non-FTA
application in Docket No. 13–147–
LNG.22 Therefore, DOE will not
consider comments or protests that do
not bear directly on this Request.
Any person wishing to become a party
to this proceeding evaluating Delfin’s
Request must file a motion to intervene
or notice of intervention.23 The filing of
comments or a protest with respect to
the Request will not serve to make the
commenter or protestant a party to this
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 Request. All protests,
comments, motions to intervene, or
21 Request
at 6.
supra note 1.
23 Status as an intervenor in prior proceeding(s)
in this docket does not continue to this proceeding
evaluating Delfin’s Request, and therefore any
person interested in intervening to address the
Request must file a new motion to intervene (or
notice of intervention, as applicable). 10 CFR
590.303.
22 See
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notices of intervention must meet the
requirements specified by the
regulations in 10 CFR part 590,
including the service requirements.
Filings may be submitted using one of
the following methods:
(1) Submitting the filing electronically
at fergas@hq.doe.gov;
(2) Mailing the filing to the Office of
Regulation, Analysis, and Engagement
at the address listed in the ADDRESSES
section; or
(3) Hand delivering the filing to the
Office of Regulation, Analysis, and
Engagement at the address listed in the
ADDRESSES section.
For administrative efficiency, DOE
prefers filings to be filed electronically.
All filings must include a reference to
‘‘Docket No. 13–147–LNG’’ or ‘‘Delfin
LNG LLC Request’’ in the title line.
For electronic submissions: Please
include all related documents and
attachments (e.g., exhibits) in the
original email correspondence. Please
do not include any active hyperlinks or
password protection in any of the
documents or attachments related to the
filing. All electronic filings submitted to
DOE must follow these guidelines to
ensure that all documents are filed in a
timely manner.
The Request, and any filed protests,
motions to intervene, notices of
intervention, and comments will be
available electronically on the DOE
website at www.energy.gov/fecm/
regulation.
A decisional record on the Request
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. If
an additional procedure is scheduled,
notice will be provided to all parties. If
no party requests additional procedures,
a final Order may be issued based on the
official record, including the Request
and responses filed by parties pursuant
to this Notice, in accordance with 10
CFR 590.316.
Signed in Washington, DC, on March 25,
2024.
Amy Sweeney,
Director, Office of Regulation, Analysis, and
Engagement, Office of Resource
Sustainability.
[FR Doc. 2024–06703 Filed 3–28–24; 8:45 am]
BILLING CODE 6450–01–P
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22139
DEPARTMENT OF ENERGY
National Petroleum Council Meeting
Office of Fossil Energy and
Carbon Management, Department of
Energy.
ACTION: Notice of open meeting.
AGENCY:
This notice announces a
meeting of the National Petroleum
Council. The Federal Advisory
Committee Act requires that public
notice of this meeting be announced in
the Federal Register.
DATES: Tuesday, April 23, 2024; 9:00
a.m. to no later than 12:00 p.m. (EST).
ADDRESSES: Willard InterContinental,
1401 Pennsylvania Avenue NW,
Washington, DC 20004. In-person
meeting. Information to access a live
stream of the meeting proceedings will
be available at: www.energy.gov/fecm/
national-petroleum-council-npc.
FOR FURTHER INFORMATION CONTACT:
Nancy Johnson, U.S. Department of
Energy, Office of Resource
Sustainability (FECM–30), 1000
Independence Avenue SW, Washington,
DC 20585; telephone: (202) 586–6458 or
email: nancy.johnson@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
Purpose of the Committee: To provide
advice, information, and
recommendations to the Secretary of
Energy on matters relating to oil and
natural gas, and the oil and natural gas
industries.
Purpose of the Meeting: The National
Petroleum Council will hold a meeting
on April 23, 2024, to present and
approve the final reports of the
Committees on Hydrogen Energy and
GHG Emissions.
SUMMARY:
Tentative Agenda
• Call to Order and Introductory
Remarks
• Department of Energy Remarks
• Presentations, Discussion, and
Approval of the Final Reports of the
NPC Hydrogen Energy and GHG
Emissions Committees
• Discussion of Any Other Business
Properly Brought Before the National
Petroleum Council
• Adjournment
Public Participation: The meeting is
open to the public. The Chair of the
Council will conduct the meeting to
facilitate the orderly conduct of
business. Members of the public who
wish to make oral statements pertaining
to agenda items should contact Ms.
Nancy Johnson at the address or
telephone number listed above.
Approximately 15 minutes will be
reserved for public comments. The time
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Agencies
[Federal Register Volume 89, Number 62 (Friday, March 29, 2024)]
[Notices]
[Pages 22137-22139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06703]
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DEPARTMENT OF ENERGY
[Docket No. 13-147-LNG]
Delfin LNG LLC; Request for Supplemental Order Granting
Conditional Extension of Time for Long-Term Authorization To Export
Liquefied Natural Gas
AGENCY: Office of Fossil Energy and Carbon Management, Department of
Energy.
ACTION: Notice of request.
-----------------------------------------------------------------------
SUMMARY: The Office of Fossil Energy and Carbon Management (FECM) of
the Department of Energy (DOE), formerly the Office of Fossil Energy
(FE), gives notice (Notice) of receipt of a request (Request), filed by
Delfin LNG LLC (Delfin) on March 1, 2024. Delfin requests a
supplemental order modifying its authorization to export domestically
produced liquefied natural gas (LNG) to non-free trade agreement
countries set forth in DOE/FE Order No. 4028, as amended, to allow
Delfin to commence export operations from the proposed Delfin Deepwater
Port by no later than June 1, 2029--a five-year extension from its
existing commencement deadline. Delfin proposes that this extension of
time should be conditional, with Delfin required to meet the proposed
conditions within a period of nine months. Delfin filed the Request
under the Natural Gas Act (NGA) and pursuant to DOE's Policy Statement
on Export Commencement Deadlines in Authorizations to Export Natural
Gas to Non-Free Trade Agreement Countries. Protests, motions to
intervene, notices of intervention, and written comments are invited.
DATES: Protests, motions to intervene, or notices of intervention, as
applicable, and written comments are to be filed as detailed in the
Public Comment Procedures section no later than 4:30 p.m., eastern
time, April 29, 2024.
ADDRESSES:
Electronic Filing by email (Strongly encouraged):
[email protected].
Postal Mail, Hand Delivery, or Private Delivery Services (e.g.,
FedEx, UPS, etc.), U.S. Department of Energy (FE-34), Office of
Regulation, Analysis, and Engagement, Office of Fossil Energy and
Carbon Management, Forrestal Building, Room 3E-056, 1000 Independence
Avenue SW, Washington, DC 20585.
Due to potential delays in DOE's receipt and processing of mail
sent through the U.S. Postal Service, we encourage respondents to
submit filings electronically to ensure timely receipt.
FOR FURTHER INFORMATION CONTACT:
Jennifer Wade or Peri Ulrey, U.S. Department of Energy (FE-34), Office
of Regulation, Analysis, and Engagement, Office of Resource
Sustainability, Office of Fossil Energy and Carbon Management,
Forrestal Building, Room 3E-042, 1000 Independence Avenue SW,
Washington, DC 20585, (202) 586-4749 or (202) 586-7893,
[email protected] or [email protected]
Cassandra Bernstein, U.S. Department of Energy (GC-76), Office of the
Assistant General Counsel for Energy Delivery and Resilience, Forrestal
Building, Room 6D-033, 1000 Independence Avenue SW, Washington, DC
20585, (240) 780-1691, [email protected]
SUPPLEMENTARY INFORMATION:
Background
On June 1, 2017, in DOE/FE Order No. 4028 (as amended),\1\ DOE
authorized Delfin to export domestically produced LNG by vessel from
the proposed Delfin
[[Page 22138]]
Liquefaction Project (Project), a floating liquefaction facility to be
located in the Gulf of Mexico off the coast of Cameron Parish,
Louisiana, to any country with which the United States has not entered
into a free trade agreement (FTA) requiring national treatment for
trade in natural gas, which currently has or in the future develops the
capacity to import LNG, and with which trade is not prohibited by U.S.
law or policy (non-FTA countries).\2\ Delfin is authorized to export
this LNG in a volume equivalent to 657.5 billion cubic feet per year of
natural gas for a term extending through December 31, 2050.\3\
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\1\ Delfin LNG LLC, DOE/FE Order No. 4028, Docket No. 13-147-LNG
(June 1, 2017), reh'g denied, Order No. 4028-A (Apr. 3, 2018),
amended by Order No. 4028-B (Dec. 10, 2020) (extending export term),
further amended by Order No. 4028-C (May 18, 2021) (correcting and
amending location of floating LNG vessels). In addition, Delfin's
export authorization was amended by DOE/FE Order No. 4641 (Dec. 18,
2020) to include short-term export authority on a non-additive
basis.
\2\ 15 U.S.C. 717b(a).
\3\ Delfin LNG LLC, DOE/FE Order No. 4028, as amended in Order
No. 4028-B (Ordering Para. A).
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Because Delfin's Project will be a ``deepwater port'' within the
meaning of the Deepwater Port Act of 1974, as amended (DWPA), 33 U.S.C.
1501 et seq., the Project requires a deepwater port license from the
U.S. Department of Transportation Maritime Administration (MARAD), in
conjunction with the U.S. Coast Guard.\4\ In the Request, Delfin
explains that, although it has received a favorable Record of Decision
from MARAD, it has been waiting for ``nearly two years'' for MARAD to
issue a final deepwater license authorizing the operation of Delfin's
offshore facilities.\5\
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\4\ For more information on MARAD's deepwater port licensing,
see Delfin LNG LLC, DOE/FE Order No. 4028, at 1-3, 126-35
(summarizing MARAD's process and Delfin's status at that time), 173
(Ordering Para. H), and Request at 5, 22-27.
\5\ See Request at 2, 22-26.
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Delfin's Project also involves certain onshore components that
required the authorization of the Federal Energy Regulatory Commission
(FERC), which Delfin received in 2017.\6\ Delfin states that, on
October 4, 2023, it obtained an extension from FERC of the deadline to
construct and place its onshore facilities into service--from September
28, 2023, to September 28, 2027.\7\
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\6\ For more information on FERC's jurisdiction over limited
onshore components of the Project, see Delfin LNG LLC, DOE/FE Order
No. 4028, at 2-3, 173 (Ordering Para. H), and Request at 6 n.9, 7
n.12, 8 n.13.
\7\ See Request at 6 n.9, 26-27 (citing Delfin LNG LLC, 185 FERC
] 61,009 (2023)).
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As relevant here, Order No. 4028 requires Delfin to ``commence
export operations using the planned liquefaction facilities no later
than seven years from the date of issuance of [the] Order''--i.e., by
June 1, 2024.\8\
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\8\ Delfin LNG LLC, DOE/FE Order No. 4028, at 173 (Ordering
Para. D). Additionally, Delfin asks DOE to amend its existing FTA
authorization (DOE/FE Order No. 3393, as amended). DOE will address
the FTA portion of the Request separately pursuant to NGA section
3(c), 15 U.S.C. 717b(c).
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Request for Conditional Extension
In its Request, Delfin asks DOE to issue a supplemental order that
would ``modify'' Order No. 4028 to provide Delfin a five-year
``conditional extension of time'' for Delfin to commence export
operations from the Project--from June 1, 2024, to June 1, 2029.\9\
Delfin states that this Request is consistent with DOE's Policy
Statement on Export Commencement Deadlines (Commencement Extension
Policy) issued on April 26, 2023.\10\
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\9\ Delfin LNG LLC, Request for Supplemental Order Granting
Conditional Extension of Time for Long-Term Authorizations to Export
Liquefied Natural Gas, Docket No. 13-147-LNG, at 32, 43 (Mar. 1,
2024) [hereinafter Request]. Delfin states that it is not seeking to
modify any other aspect of its Project or non-FTA authorization. See
id. at 2.
\10\ U.S. Dep't of Energy, Policy Statement on Export
Commencement Deadlines in Authorizations to Export Natural Gas to
Non-Free Trade Agreement Countries, 88 FR 25272 (Apr. 26, 2023),
https://www.energy.gov/sites/default/files/2023-06/Policy%20Statement%20on%20Export%20Commencement%20Deadlines%20in%20Authorizations%20to%20Export%20Natural%20Gas%20to%20Non-Free%20Trade%20Agreement%20Countries.pdf [hereinafter Commencement
Extension Policy].
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Specifically, Delfin proposes that DOE ``grant only a conditional
extension that requires Delfin to certify by no later than nine (9)
months after DOE/FECM's order that it has: (1) obtained the final DWPA
license (to the extent that this has not occurred prior to DOE/FECM
granting the conditional extension); (2) secured necessary financing
arrangements to construct its first FLNGV [floating LNG vessel] and the
Deepwater Port; (3) made its positive FID [Final Investment Decision]
with respect to first FLNGV; and (4) issued an unconditional, full NTP
[Notice to Proceed] for first FLNGV to the EPCI [Engineering,
Procurement, Construction and Integration] contractor pursuant to the
binding, executed EPCI contract.'' \11\
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\11\ Request at 5; see also id. at 37.
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Delfin states that, although it ``is confident in its ability to
satisfy those conditions within the requested time period, should it
fail to do so then the export authorizations would expire at the end of
that period.'' \12\ Delfin further contends that ``imposition by DOE/
FECM of these conditions on the extension of time will eliminate soon
any uncertainty about the status of Delfin's project, providing
assurance to DOE (and all other stakeholders and interested observers)
that Delfin will actually commence LNG exports by the extended
deadline.'' \13\ Delfin thus asserts that its Request ``satisf[ies] the
objective of the Commencement Extension Policy of reducing the
`regulatory overhang' between authorized export volumes and projects
actually moving forward.'' \14\
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\12\ Id. at 5.
\13\ Id. at 5-6.
\14\ Id. at 6.
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In support of its Request, Delfin asserts that good cause exists to
grant the requested conditional extension of time, and that Delfin's
authorized exports remain in the public interest. Delfin also states
that it meets the criteria established by DOE in the Commencement
Extension Policy for such requests. Specifically, Delfin argues that
its Project ``has been delayed by a series of extenuating circumstances
outside its control,'' \15\ and that ``[m]uch of the infrastructure for
[the Project] has already been constructed and is in existence, namely
the large offshore natural gas pipelines that will transport feed gas
to the FLNGVs.'' \16\
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\15\ Id. at 3-4 (citing, e.g., ``the continuing evolution of
FLNGV technology requiring a series of refinements of the project,
complications related to trade with China, the impacts of the COVID-
19 epidemic, the related slowdown in market demand for LNG, and
significant challenges with the MARAD licensing process'').
\16\ Request at 4; see also id. at 11-16.
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Additionally, Delfin distinguishes its floating offshore Project
from ``the land-based LNG export projects holding all other non-FTA
authorizations.'' \17\ Delfin states that ``the key part'' of its
Project, the FLNGVs, ``will be constructed in existing shipyards
overseas.'' \18\ Delfin describes both its commercial progress to date
for the FLNGV construction and the remaining steps needed to reach
FID.\19\
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\17\ Id. at 4.
\18\ Id.
\19\ Id. at 4, 16-22, 27-31.
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Delfin states that, because it is not requesting an extension of
its export term under Order No. 4028, as amended (which ends on
December 31, 2050), or an increase in its authorized export volume,
``the result of the extension will be that Delfin will have five years
fewer to export LNG for a significant decrease in the total volumes of
LNG exports under the authorization than was previously authorized.''
\20\
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\20\ Id. at 33.
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Finally, Delfin asks DOE to grant the Request by its existing
export commencement deadline of June 1, 2024. If DOE is unable to act
on the Request by this date, Delfin asks DOE to ``toll'' the existing
June 1, 2024, export commencement deadline in Order No. 4028 in light
of the pending Request, so that ``the existing non-FTA authorization
would not expire and DOE/FECM could subsequently grant the conditional
extension
[[Page 22139]]
notwithstanding passage of the pre-existing deadline.'' \21\
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\21\ Request at 6.
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Additional details can be found in the Request, posted on the DOE
website at: www.energy.gov/sites/default/files/2024-03/Delfin%20DOE%20Extension%20request%20%28030124%20FINAL%29.pdf.
DOE Evaluation
In reviewing Delfin's Request, DOE will consider any issues
required by law or policy under NGA section 3(a), DOE's regulations,
DOE's Commencement Extension Policy, and any other documents deemed
appropriate.
Parties that may oppose the Request should address these issues and
documents in their comments and/or protests, as well as other issues
deemed relevant to the Request.
The National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et
seq., 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.
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, addressing the Request. Interested parties will be provided
30 days from the date of publication of this Notice in which to submit
comments, protests, motions to intervene, or notices of intervention.
The public previously was given an opportunity to intervene in,
protest, and comment on Delfin's non-FTA application in Docket No. 13-
147-LNG.\22\ Therefore, DOE will not consider comments or protests that
do not bear directly on this Request.
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\22\ See supra note 1.
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Any person wishing to become a party to this proceeding evaluating
Delfin's Request must file a motion to intervene or notice of
intervention.\23\ The filing of comments or a protest with respect to
the Request will not serve to make the commenter or protestant a party
to this 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 Request. All protests, comments,
motions to intervene, or notices of intervention must meet the
requirements specified by the regulations in 10 CFR part 590, including
the service requirements.
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\23\ Status as an intervenor in prior proceeding(s) in this
docket does not continue to this proceeding evaluating Delfin's
Request, and therefore any person interested in intervening to
address the Request must file a new motion to intervene (or notice
of intervention, as applicable). 10 CFR 590.303.
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Filings may be submitted using one of the following methods:
(1) Submitting the filing electronically at [email protected];
(2) Mailing the filing to the Office of Regulation, Analysis, and
Engagement at the address listed in the ADDRESSES section; or
(3) Hand delivering the filing to the Office of Regulation,
Analysis, and Engagement at the address listed in the ADDRESSES
section.
For administrative efficiency, DOE prefers filings to be filed
electronically. All filings must include a reference to ``Docket No.
13-147-LNG'' or ``Delfin LNG LLC Request'' in the title line.
For electronic submissions: Please include all related documents
and attachments (e.g., exhibits) in the original email correspondence.
Please do not include any active hyperlinks or password protection in
any of the documents or attachments related to the filing. All
electronic filings submitted to DOE must follow these guidelines to
ensure that all documents are filed in a timely manner.
The Request, and any filed protests, motions to intervene, notices
of intervention, and comments will be available electronically on the
DOE website at www.energy.gov/fecm/regulation.
A decisional record on the Request 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.
If an additional procedure is scheduled, notice will be provided to all
parties. If no party requests additional procedures, a final Order may
be issued based on the official record, including the Request and
responses filed by parties pursuant to this Notice, in accordance with
10 CFR 590.316.
Signed in Washington, DC, on March 25, 2024.
Amy Sweeney,
Director, Office of Regulation, Analysis, and Engagement, Office of
Resource Sustainability.
[FR Doc. 2024-06703 Filed 3-28-24; 8:45 am]
BILLING CODE 6450-01-P