Regulator Delays EIS for Two US LNG Projects [UPDATE]
The US Federal Energy Regulatory Commission (Ferc) said February 28 it has delayed the issuance of final environmental impact statements (EIS) for two major US LNG export projects, citing the month-long shut-down of the US government earlier this year for one of the delays.
A final EIS for Pembina Pipeline’s proposed 7.8mn mt/yr Jordan Cove LNG project has been delayed to October 11, 2019 from August 30, 2019, Ferc staff said.
“Due to the funding lapse at certain federal agencies between December 22, 2018 and January 25, 2019, an extension is required for the co-operating agencies to complete their respective input,” Ferc said. A final order on the project will now be issued no later than January 9, 2020 rather than by November 29, 2019 as previously contemplated by the commission.
The EIS schedule for the 20mn mt/yr Alaska LNG project proposed by Alaska Gasline Development Corporation (AGDC) has also been extended, Ferc said, with a final EIS now expected by March 6, 2020 and a final order set for June 4, 2020. The previous schedule called for a final EIS by November 8, 2019 and a final order by February 6, 2020.
The previous schedule, Ferc staff said, was based on AGDC providing “complete and timely” responses to any data requests. In its most recent partial data request response filings, AGDC said it would provide the rest of its responses in stages through July 2019. As a result, staff said, it has had to revise its EIS schedule for Alaska LNG.
The notice of the delayed EIS scheduled came the same day that AGDC's new CEO, named in January by Alaska governor Mike Dunleavy, told state legislators that if customers or additional investors for the estimated $43bn project are not found soon, he is prepared to shut it down.
Joe Dubler told a state budget subcommittee that Dunleavy has asked for an evaluation of the project’s viability; despite intense marketing and about $1bn spent on engineering and environmental work, AGDC has still not found customers, and is facing increasing pressure from other projects, including the Shell-led LNG Canada project in Kitimat, BC.
According to media reports, Dubler told the subcommittee AGDC’s plan is to evaluate the technical and commercial aspects of the project; if it is viable and partners can be found, work will continue into the front end engineering and design (Feed) stage. “If it is not viable, then the project will be wound down and all remaining funds will be returned to the (state) general fund,” he said.