Gulf LNG cleared to pre-apply with Ferc

Kinder Morgan-backed Gulf LNG Liquefaction is getting ready to pre-apply to the Federal Energy Regulatory Commission (Ferc) to renovate a $1 billion liquefied natural gas storage terminal in Pascagoula, Mississippi, to add liquefaction and export capabilities.

Ferc said Gulf LNG had complied with all prerequisites and that "the pre-filing review process may begin".

Gulf LNG filed an application in late 2012 to begin the regulatory process necessary for the conversion of the import facility in Jackson County, Mississippi.

The company plans to construct LNG trains, and processing and support facilities to the existing terminal and pipeline infrastructure to accommodate bi-directional flow of natural gas. The project would require new or additional in-tank pumps, piping modifications, and valves and control systems, among other things, a filing with Ferc said.

The proposed additions could produce up to 10.5 million tonnes per annum of LNG from a gas feedstock rate of up to 1.5 billion cubic feet per day. The investment in the upgrades is expected to total about $8 billion.

Gulf LNG is expected to file its full application to Ferc in April 2015. It has also applied for an export permit to non-free trade countries with the US Department of Energy.

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