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A Very Large Gas Carrier (VLGC)

Louisiana LNG Energy, LLC’s new plant poised for profit

By Marissa Hall | Shale Plays Media

An affiliate of ArcLight Capital Partners, LLC (“ArcLight”) has provided funding to Louisiana LNG Energy, LLC (“LLNGE”), a liquefied natural gas (LNG) company based in Houston, Texas, for a midscale export terminal on the Mississippi River in Louisiana. The amount provided by ArcLight is as of yet undisclosed.

LLNGE’s facility would fall in the southeastern tip of Louisiana in Plaquemines Parish and consist of about 200 acres. Upon its anticipated completion in 2017, this facility would have a 2 million ton export capacity each year. LLNGE’s facility would also have access to deep water, allowing for very large gas carriers (VLGC).

“The ArcLight funding agreement is a significant step in advancing the LLNGE Project,” says CEO of LLNGE Jim Lindsay.

Related: How Will Louisiana Address its Looming Natural Gas Supply Shortfall?

Chart Energy & Chemicals Inc. has been chosen to design the new LNG liquefaction plant and provide advanced engineering for the venture.

In recent years, Haynesville’s dry natural gas production has begun to decrease, but is still producing about 6.5 billion cubic feet of natural gas per day, topped only by the natural gas being produced from Marcellus shale play. LLNGE would seem to be taking steps toward becoming a substantive part of the exportation of this product. Seven applications for the exportation of LNG have been approved by the Department of Energy so far, facilitating conditional trade agreements with India, South Korea, and Japan.

LNG is estimated to about half of the natural gas production in the U.S. by 2035, and the U.S. is currently offers the lowest price on natural gas exportation. Although production decreased in 2013 for Haynesville, some industry observers speculate that increase in demand for LNG could herald the return of drilling to Louisiana, already putting LLNGE ahead of the game. However, some market observers believe that Haynesville still remains at a disadvantage, given that it produces little in the way of liquid product.

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