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A planned liquefied natural gas terminal for Port Fourchon is now in the midst of the regulatory process, bringing the project a step closer to reality.
The Greater Lafourche Port Commission and the project’s developer, Energy World USA, have filed a formal letter with the US Federal Energy Regulatory Commission seeking review.
The terminal, statements from the commission and Energy World indicate, will eventually handle an estimated 5 million tons per year at the facility, being designed for both production and export.
Phase 1 of the Fourchon LNG project will produce 2 million tons of LNG per year for export, with a program to increase capacity up to 5 million tons in a second phase.
A half million tons per year will be reserved for domestic use.
Of particular interest to local industries, especially ship builders and operators, are plans for the project to provide fuel for next-generation offshore vessels that will be operating in the Gulf of Mexico.
“We welcome this critical milestone for the Fourchon LNG project by our tenant Energy World, and we are excited to have the opportunity to add their proposed facility and its services to Fourchon’s diverse and extensive list of offerings,” said the port’s Executive Director Chett Chiasson. “We are looking forward to working with Energy World and our community to move forward through the regulatory process and keep Port Fourchon at the forefront of the oil and gas service industry.”
The facility will be constructed to the west of Belle Pass on a site of up to 150 acres located on port-owned property outside of the port’s existing developments.
The project developer, Fourchon LNG LLC, is a newly established project company owned by Energy World USA Inc. and is part of the Energy World International Ltd. group of companies. The EWI group is engaged in the business of developing, constructing, and operating in property investment, infrastructure, power generation and energy-related projects.
“The Energy World Group of companies has over 20 years’ experience in the safe production, storage, transportation and delivery of LNG to its customers in Australia; and the Group is completing two world class LNG facilities in Indonesia, which will be the reference plant for Fourchon LNG, and the very first import terminal in the Philippines. We appreciate the opportunity to bring this type of new development to Port Fourchon,” said Graham Elliott, Project Director for Energy World.
“Energy World is pleased to commence our first US-based project by kicking off the formal regulatory process with FERC following over two decades of sustainable, safe, and timely delivery of similar projects in sensitive environments across the globe. We look forward to incorporating the LNG produced at Port Fourchon into our global supply chain to fuel our own gas-fired power plants right across the Asia-Pacific region as well as providing a clean, green source of fuel for the next generation of US marine vessels. Additionally, we hope to export to Jamaica and the wider Caribbean, where Energy World is separately proposing to develop an LNG hub terminal and gas-fired power plants consistent with our goal of delivering clean and affordable electricity to developing countries on a global platform,” added Stewart Elliott, Managing Director of Energy World International.
The proposed facility will represent an investment of upwards of $888 million for Phase 1, making it the largest single initial investment in the history of both Port Fourchon and Lafourche Parish.
GLPC has been working with Energy World to produce a Preliminary Waterway Suitability Assessment with the US Coast Guard, which will help to ensure that current and future port activities are not adversely affected by the operation of the potential facility. GLPC and Energy World are currently working with the Coast Guard to advance to the next stage of the Waterway Suitability Assessment process for the project. This assessment will also serve to support Energy World’s application to the FERC for project approval.
“We take our role as advocate for our existing tenants and the offshore service industry seriously, and we are working very closely with both the US Coast Guard and Energy World to ensure that vessel traffic in and out of the port will continue to grow through this development and our other expansion plans stretching far into the future,” said Port Commission President Perry Gisclair. •
