A proposed liquefied natural gas facility in Louisiana that had been dormant is alive again, Kallanish Energy reports.
Pointe LNG has hired Whitehall & Co. to raise investment capital and secure offtake for a liquefaction/export facility in Plaquemines Parish, Louisiana, to process 6 million tons per year of LNG.
It said $4 billion in capital would be needed for the project. That includes $56 million in development capital.
The project marks the return to the 600-acre site on the Mississippi River for two Pointe LNG founders: Tom Burgess and Jim Lindsay.
They had started development of an LNG project under the name Louisiana LNG Energy which they sold in 2015 to a joint venture between Cheniere Energy and Parallax.
When those plans did not advance, Pointe LNG resumed development under its new name.
The company plans to close development of the capital portion in third quarter 2020 with a final investment decision in mid-2022 and commercial operation by 2026.
The facility would be part of a second wave of LNG facilities being developed in the United States.
“The project has the best greenfield LNG site in the United States, and we are very excited to kick off this project,” Burgess said in a recent statement.
The site is only seven miles from two major natural gas pipelines: TGPL and SONAT. It could process natural gas from the Appalachian Basin, Oklahoma and the Hayneville Shale.
The ground at the site is stable with little dredging or additional work required and there are minimal wetlands to mitigate.
The facility could be doubled on the current site, the company said.
The current plan is three times larger the original size of the Louisiana project.
Since late 2018, the company has submitted paperwork to the Federal Energy Regulatory Commission and signed initial contracts to design, build and operate the plant.
