Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



U.S. says Cheniere must do work on Louisiana Sabine LNG storage tanks

U.S. energy and safety regulators told Cheniere Energy Inc the company had to take several steps before the agencies would authorize the return to service of two liquefied natural gas (LNG) storage tanks that leaked at the Sabine Pass LNG export terminal in Louisiana.

The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Federal Energy Regulatory Commission (FERC) told Cheniere that neither agency is prepared to authorize a return to service at this time.

In April 2018, Cheniere agreed to take certain corrective measures, but the agencies said in their filing that the company has in some instances “failed to comply” with requests to test equipment and provide documentation of the testing.

In response, Cheniere, the biggest U.S. LNG exporter, said in an email, “We are analyzing the letter from the agencies and will provide a formal response. We have been responsive and forthcoming throughout this process, and will continue to be.”

PHMSA ordered Cheniere to shut two LNG storage tanks on Feb. 8, 2018, after plant workers on Jan. 22, 2018, discovered a 1-to-6-foot-long crack at one tank that leaked fuel into an outer layer. During the investigation of the Sabine site, PHMSA discovered a second tank had also experienced releases of LNG from the inner tank.

The agencies told Cheniere that any work done to return a tank to service prior to completion of the agencies’ requirements is “at your own risk.”

The agencies noted PHMSA has previously conveyed its concern to Cheniere regarding premature filling of one tank with perlite, which is used to insulate LNG tanks.

Some of the tasks the agencies said Cheniere would have to complete before allowing the tanks to return to service include a structural re-inspection of all LNG storage tanks at Sabine and installation of additional devices to detect leaks.

There are five tanks at Sabine, each with the capacity to hold the equivalent of 3.4 billion cubic feet of gas (bcf), or 17 bcf in total. One billion cubic feet of gas is enough to fuel about 5 million U.S. homes for a day.

Sabine Pass was the first big LNG export terminal to enter service in the Lower 48 U.S. states in February 2016. There are now four LNG export terminals operating in the United States with a total capacity of 6.4 billion cubic feet per day.

Reporting by Scott DiSavino Editing by Leslie Adler


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
The $26-B small-scale LNG market is gaining exciting traction this year.
Regional Focus: Singapore moves closer to becoming a global LNG trading hub
-Eugene Gerden
Amid strong demand for LNG in the Asia-Pacific region and the need to secure regular gas supplies on a large scale, Singapore may become a major regional hub for LNG trade.
Show Preview
-Adrienne Blume
For the third time in its 47-yr history, Gastech is returning to Houston, Texas.


Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies

Register Now

By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.

June 18, 2019 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.