SCT&E Secures Land for New LNG Facility

Greg Michaels, Chairman and CEO of Southern California Telephone & Energy, announced the acquisition of land located on the Calcasieu Ship Channel for the development of a $2.4 billion LNG facility by its subsidiary SCT&E LNG, LLC.

The approximate +/-232 acre site is strategically located on Monkey Island in Cameron Parish, Louisiana, and is expected to have significant positive financial impact on the Cameron Parish Community, as well as the State of Louisiana.

Less than three miles from the Gulf of Mexico, the Monkey Island site has 3,500 feet of deep water frontage on the Calcasieu Ship Channel and 4,000 feet of frontage on the Calcasieu Pass/Cameron Loop at the northern boundary of the property. The area is one of the most robust natural gas transportation networks in North America and is adjacent to the convergence of several major interstate and intrastate natural gas pipelines.

SCT&E LNG intends to build, own, and operate four LNG trains (Phase One), each capable of producing nearly 1 million tonnes per annum (mtpa) for a total of 4 mtpa or the liquefaction of approximately .54 billion cubic feet per
day (Bcfd) of natural gas. Because of the deep water access at Monkey Island, close proximity to the Gulf Coast, and large river frontage, the site will accommodate large LNG vessels and may be used as a refueling station for newly converted or future vessels using LNG as a fuel source.

Natural gas will be treated at the Monkey Island site, liquefied, stored, and loaded onto LNG carriers for export to overseas customers in countries that have a free trade agreement (FTA) and/or non-FTA status with the United States. The site will house multiple LNG storage tanks which may be used for LNG bunkering and fueling of transportation ships for distribution of LNG. Now that the land acquisition is complete, SCT&E LNG will submit applications to the Department of Energy (DOE) for permission to export LNG to FTA and non-FTA nations.

Michaels’ decision to build an LNG facility was originally driven by an agreement with the Dominican Republic Government for the development of a 400 MW natural gas-fired power plant. The Dominican Republic power plant requires approximately 500,000 tonnes per annum (tpa) of LNG allowing SCT&E LNG to sell the remaining 3.5 mtpa of LNG to other LNG off-takers. Michaels said, “With the shutdown of the Fukushima nuclear power plant and other nuclear phase-outs throughout Europe, China’s recent announcement for targeted air pollution reductions requiring the use of LNG, and the increasing international demand for clean burning natural gas, the United States is in a position to become the powerhouse to LNG markets worldwide.”

Michaels is quick to state that “owning an LNG facility allows SCT&E to manage the availability of LNG for their own projects, allowing the company to win contracts for the development and ownership of gas-fired power plants world-wide.”

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Press Release, May 12, 2014