[Federal Register Volume 79, Number 147 (Thursday, July 31, 2014)]
[Notices]
[Pages 44439-44441]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18030]



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DEPARTMENT OF ENERGY

[FE Docket No. 13-161-LNG]


Gasfin Development USA, LLC; Application for Long-Term 
Authorization To Export Liquefied Natural Gas Produced From Domestic 
Natural Gas Resources to Non-Free Trade Agreement Countries for a 20-
Year Period

AGENCY: Office of Fossil Energy, DOE.

ACTION: Notice of application.

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SUMMARY: The Office of Fossil Energy (FE) of the Department of Energy 
(DOE) gives notice of receipt of an application (Application) filed on 
December 24, 2013, by Gasfin Development USA, LLC (Gasfin), requesting 
long-term, multi-contract authorization to export liquefied natural gas 
(LNG) produced from domestic sources in a volume equivalent to 
approximately 74 billion cubic feet per year (Bcf/yr) of natural gas, 
or 0.2 Bcf per day (Bcf/d). Gasfin seeks authorization to export the 
LNG by vessel from the proposed Gasfin LNG Export Project, a mid-scale 
natural gas liquefaction and LNG export terminal to be located along 
the Calcasieu River in Cameron Parish, Louisiana (the Project), for a 
20-year term commencing on the earlier of the date of first export or 
eight years from the date the authorization is granted. Gasfin requests 
authorization to export the LNG by vessel to any country with which the 
United States does not have a free trade agreement (FTA) requiring 
national treatment for trade in natural gas (non-FTA countries), and 
with which trade is not prohibited by U.S. law or policy. Gasfin 
requests this authorization on its own behalf and as agent for other 
parties who hold title to the LNG at the time of export. The 
Application was filed under section 3(a) of the Natural Gas Act (NGA).

DATES: Protests, motions to intervene or notices of intervention, as 
applicable, requests for additional procedures, and written comments 
are to be filed using procedures detailed in the Public Comment 
Procedures section no later than 4:30 p.m., Eastern time, September 29, 
2014.

ADDRESSES: Electronic Filing by email: [email protected].

Regular Mail

    U.S. Department of Energy (FE-34), Office of Oil and Gas Global 
Security and Supply, Office of Fossil Energy, P.O. Box 44375, 
Washington, DC 20026-4375.

Hand Delivery or Private Delivery Services (e.g., FedEx, UPS, etc.)

    U.S. Department of Energy (FE-34), Office of Oil and Gas Global 
Security and Supply, Office of Fossil Energy, Forrestal Building, Room 
3E-042, 1000 Independence Avenue SW., Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT:
Larine Moore or Lisa Tracy, U.S. Department of Energy (FE-34), Office 
of Oil and Gas Global Security and Supply, Office of Fossil Energy, 
Forrestal Building, Room 3E-042, 1000 Independence Avenue SW., 
Washington, DC 20585, (202) 586-9478; (202) 586-4523.
Cassandra Bernstein, U.S. Department of Energy, Office of the Assistant 
General Counsel for Electricity and Fossil Energy, Forrestal Building, 
1000 Independence Avenue SW., Washington, DC 20585, (202) 586-9793.

SUPPLEMENTARY INFORMATION: 

Background

    Applicant. Gasfin states that it is a Delaware limited liability 
company with its principal place of business in Strassen, Luxembourg. 
Gasfin is a wholly owned subsidiary of Gasfin Development S.A. (Gasfin 
Development), a Luxembourg company that develops, owns and manages mid-
scale LNG infrastructure.
    According to Gasfin, Gasfin Development is management controlled by 
Roland Fisher (CEO) and Vladimir Puklavec (Chairman). Gasfin 
Development's affiliated operating group companies are TGE Gas 
Engineering GmbH (TGE Gas) and TGE Marine Gas Engineering GmbH (TGE 
Marine)--both limited companies set up in Bonn, Germany. Gasfin 
Development management holds 40 percent of the share capital of TGE Gas 
and TGE Marine. China International Marine Containers (Group) Co., 
Ltd., a publicly traded Chinese manufacturing group listed on the 
Shenzhen Stock Exchange, is a 60 percent shareholder of TGE Gas. 
Caledonia Investments plc, a publicly traded UK Investment Trust listed 
on the London Stock Exchange, is a 60 percent shareholder of TGE 
Marine.
    Procedural History. On March 7, 2013, DOE/FE issued Order No. 3253, 
in which it authorized Gasfin to export LNG produced from domestic 
sources to FTA countries (i.e., countries with which the United States 
currently has, or in the future will have, a free trade agreement 
requiring national treatment for trade in natural gas) \1\ in a volume 
equivalent to approximately 74 Bcf/yr of natural gas (0.2 Bcf/d), or 
1.5 million metric tons per annum (mtpa) of LNG.\2\ This is the same 
volume of LNG requested for exported to non-FTA countries in the 
current Application.
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    \1\ The United States currently has FTAs requiring national 
treatment for trade in natural gas with Australia, Bahrain, Canada, 
Chile, Colombia, Dominican Republic, El Salvador, Guatemala, 
Honduras, Jordan, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, 
Republic of Korea, and Singapore. FTAs with Israel and Costa Rica do 
not require national treatment for trade in natural gas.
    \2\ Gasfin Development USA, LLC, DOE/FE Order. No. 3253, Docket 
No. 13-06-LNG, Order Granting Long-Term Multi-Contract Authorization 
to Export Liquefied Natural Gas by Vessel from the Proposed Gasfin 
LNG Export Project in Cameron Parish, Louisiana, to Free Trade 
Agreement Nations (March 7, 2013).
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    Liquefaction Project. Gasfin seeks long-term authorization to 
export domestically produced LNG from the Gasfin LNG Export Project, 
which Gasfin proposes to construct, own, and operate. Gasfin states 
that the Project will be located on a 65-acre site along the Calcasieu 
River in Cameron Parish, Louisiana. Gasfin states that construction of 
the Project will occur in three phases, with each phase capable of 
producing 0.5 mtpa of LNG (approximately 67.5 million standard cubic 
feet per day of natural gas) for a total of 1.5 mtpa. Gasfin 
anticipates that the Project will have LNG storage capacity ranging 
from 80,000 cubic meters (m\3\) to 200,000 m\3\, to be completed as 
single or multiple tanks depending on Project phasing.
    Gasfin states that it will construct a single berth to accommodate 
mid-scale LNG carriers ranging in size from 10,000 m\3\ to 174,000 
m\3\. The Project also will include a pipeline (approximately 3 to 11 
miles long) to link the Project to the existing gas pipeline network, 
as well as common facilities including control and administration 
buildings, utilities, and a flare.

Current Application

    Gasfin requests long-term, multi-contract authorization to export 
LNG in a volume equivalent to approximately 74 Bcf/yr of domestic 
natural gas (0.2 Bcf/d) by vessel from the proposed Gasfin LNG Export 
Project to any non-FTA country which has developed or in the future 
develops the capacity to import LNG, and with which trade is not 
prohibited by U.S. law or policy. Gasfin requests this authorization 
for a 20-year term commencing on the earlier of the date of first 
export or eight years from the date the requested authorization is 
granted.
    Gasfin seeks to export the requested LNG on its own behalf and as 
agent for

[[Page 44440]]

third parties who hold title to the LNG at the time of export. Gasfin 
states that it will comply with all DOE/FE requirements for exporters 
and agents as set forth in recent DOE/FE orders, including registering 
each LNG title holder for whom Gasfin seeks to export as agent. Gasfin 
states that this registration will include a written statement by the 
title holder acknowledging and agreeing to comply with all applicable 
requirements included by DOE/FE in Gasfin's export authorization. 
Gasfin further states that it will include those requirements in any 
subsequent purchase or sale agreement entered into by that title 
holder. In addition, Gasfin states that it will file under seal with 
DOE/FE any relevant long-term commercial agreements between Gasfin and 
the LNG title holder, once those agreements have been executed.
    Gasfin states that the proposed Project site is located in close 
proximity to various major interstate and intrastate pipeline systems, 
including those of Tennessee Gas Pipeline Company, ANR Pipeline 
Company, Bridgeline Holdings, L.P., Columbia Gulf Transmission Company, 
and Natural Gas Pipeline Company of America. According to Gasfin, 
specific interconnections with these neighboring pipelines will be 
driven by customer demand for delivery and receipt points.
    Gasfin states that the planned construction of a short pipeline 
(approximately 3 to 11 miles long), to be built either by Gasfin or a 
third-party pipeline company, will allow the Project to interconnect 
with major pipeline systems that span large regions of the United 
States and cross multiple conventional and unconventional gas plays. As 
a result, Gasfin asserts that the Project will be able to source gas 
from almost any point on the U.S. natural gas pipeline grid through 
direct physical delivery, by displacement on the spot market, or 
pursuant to long-term supply arrangements.
    Gasfin states that it has not yet entered into long-term supply and 
long-term LNG purchase and sale or export agreements, but it is engaged 
in commercial discussions with various potential regional and 
international large industrial customers. Gasfin further states that it 
has commenced negotiations with the neighboring pipelines for 
transportation capacity, interconnection points, and the development of 
the planned pipeline. According to Gasfin, it will finalize these 
arrangements once commercial discussions progress with potential 
customers. Gasfin states that it will submit transaction-specific 
information to DOE/FE when such contracts are executed.

Public Interest Considerations

    Gasfin contends that publicly available information demonstrates 
that the United States has significant natural gas resources to meet 
projected future domestic needs, including the quantities requested for 
export to non-FTA countries in the current Application. Gasfin 
maintains that it is evident from the current supply/demand balance of 
natural gas in the United States that its requested authorization will 
not impinge on any national or regional need for the gas. In support of 
the Application, Gasfin addresses the following:
    Domestic Natural Gas Supply. Gasfin contends that the U.S. Energy 
Information Administration's (EIA) Annual Outlook 2013 (AEO 2013) 
supports the view that the U.S. natural gas resource base continues to 
expand rapidly. Gasfin highlights AEO 2013 projections that U.S. dry 
natural gas production will total 33.14 trillion cubic feet (Tcf) (90.8 
Bcf/d) by 2040, an increase of 10.14 Tcf (27.8 Bcf/d), or 44.1%, from 
production levels of 23.0 Tcf (63.0 Bcf/d) in 2011. Gasfin also notes 
EIA's short-term forecast, which projects domestic marketed production 
to increase from 69.2 Bcf/d in 2012 to 70.4 Bcf/d in 2013, marking a 
third record-breaking year in a row. Pointing to EIA's 2014 
projections, Gasfin asserts that this trend is expected to continue.
    Gasfin next points to recent industry evaluations that, according 
to Gasfin, reflect a robust outlook for increased domestic natural gas 
supply capacity. As one example, Gasfin highlights a natural gas 
resource assessment prepared by the Potential Gas Committee of the 
Colorado School of Mines (Potential Gas Committee) in April 2013. 
Gasfin states that the Potential Gas Committee raised its prior 
estimates of the U.S. technically recoverable gas resource base by 486 
Tcf, or 25.6%, to 2,384 Tcf at year-end 2012, the highest resource 
evaluation in the group's 48-year history.
    Gasfin concludes that the Potential Gas Committee resource 
assessment, AEO 2013, and other publicly available information 
demonstrate that the United States has sufficient natural gas resources 
available at modest prices to meet projected domestic demand over the 
next 25 years.
    Domestic Natural Gas Demand. Citing the AEO 2013 Reference Case, 
Gasfin states that the domestic natural gas market is projected to grow 
at a 0.7% annual rate through 2040, with demand projected to expand to 
29.54 Tcf of natural gas (80.9 Bcf/d) in 2040 from 24.37 Tcf (66.7 Bcf/
d) in 2011.
    Supply-Demand Balance. Gasfin contends that recent trends in the 
U.S. natural gas market demonstrate that there is little, if any, 
domestic need for the natural gas that would be exported as a result of 
its requested authorization. Citing EIA data, Gasfin asserts that U.S. 
natural gas production has been growing at almost twice the rate of 
domestic demand growth since 2005. According to Gasfin, this trend 
demonstrates that available natural gas reserves exceed current demand, 
and that future resources exist well in excess of projected long-term 
domestic needs. Gasfin notes that the AEO 2013 Reference Case projects 
that domestic natural gas production is expected to exceed domestic 
consumption by 3.6 Tcf (9.86 Bcf/d) by 2040. Gasfin reiterates that 
this surplus of deliverable supply demonstrates that resources are 
available for export and would not interfere with the public interest.
    Price Impacts. Gasfin maintains that EIA data and other publicly-
available information demonstrate that the United States has sufficient 
natural gas resources available at modest prices to meet projected 
domestic demand over the export period requested by Gasfin in the 
Application. To support this point, Gasfin discusses two studies: (i) 
The NERA Study, which concluded that the largest price impacts after 
five years of LNG export growth would range from $0.22 to $1.11 per 
Mcf, and that exports of LNG will provide a net economic benefit to the 
United States, regardless of the amount of LNG that is exported; and 
(ii) the ICF State-Level Study, which projected net gross domestic 
product gains in natural gas producing states ranging from $10 to $31 
billion and up to $2.6 billion to $5 billion for non-natural gas 
producing states by 2035, as well as net jobs gains nationwide in 2035.
    Based on these factors, Gasfin maintains that the proposed exports 
are not inconsistent with the public interest. Additional details can 
be found in Gasfin's Application, which is posted on the DOE/FE Web 
site at: http://www.fossil.energy.gov/programs/gasregulation/authorizations/2013_applications/13_161_lngnfta.pdf.

Environmental Impact

    Gasfin states that the potential environmental impact of the 
Project will be reviewed by the Federal Energy Regulatory Commission 
(FERC). Gasfin further states that FERC will conduct that review in 
conjunction with Gasfin's request to site, construct, and operate the 
Project under section (3) of the NGA.

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Gasfin states that, consistent with the National Environmental Policy 
Act (NEPA), 42 U.S.C. 4321 et seq., FERC will act as the lead agency 
for the environmental review, with DOE acting as a cooperating agency. 
Gasfin anticipates requesting authorization to commence FERC's 
mandatory NEPA pre-filing review process for the Project once the 
commercial discussions with potential customers and project partners 
have progressed.

DOE/FE Evaluation

    The Application will be reviewed pursuant to section 3(a) of the 
NGA, 15 U.S.C. 717b(a), and DOE will consider any issues required by 
law or policy. To the extent determined to be relevant, these issues 
will include the domestic need for the natural gas proposed to be 
exported, the adequacy of domestic natural gas supply, U.S. energy 
security, and the cumulative impact of the requested authorization and 
any other LNG export application(s) previously approved on domestic 
natural gas supply and demand fundamentals. DOE may also consider other 
factors bearing on the public interest, including the impact of the 
proposed exports on the U.S. economy (including GDP, consumers, and 
industry), job creation, the U.S. balance of trade, and international 
considerations; and whether the authorization is consistent with DOE's 
policy of promoting competition in the marketplace by allowing 
commercial parties to freely negotiate their own trade arrangements. 
Parties that may oppose this Application should address these issues in 
their comments and/or protests, as well as other issues deemed relevant 
to the Application.
    NEPA requires DOE to give appropriate consideration to the 
environmental effects of its decisions. No final decision will be 
issued in this proceeding until DOE has met its environmental 
responsibilities.
    Due to the complexity of the issues raised by the Applicant, 
interested persons will be provided 60 days from the date of 
publication of this Notice in which to submit comments, protests, 
motions to intervene, notices of intervention, or motions for 
additional procedures.

Public Comment Procedures

    In response to this Notice, any person may file a protest, 
comments, or a motion to intervene or notice of intervention, as 
applicable. Any person wishing to become a party to the proceeding must 
file a motion to intervene or notice of intervention, as applicable. 
The filing of comments or a protest with respect to the Application 
will not serve to make the commenter or protestant a party to the 
proceeding, although protests and comments received from persons who 
are not parties will be considered in determining the appropriate 
action to be taken on the Application. All protests, comments, motions 
to intervene, or notices of intervention must meet the requirements 
specified by the regulations in 10 CFR part 590.
    Filings may be submitted using one of the following methods: (1) 
Emailing the filing to [email protected] with FE Docket No. 13-161-LNG 
in the title line; (2) mailing an original and three paper copies of 
the filing to the Office of Oil and Gas Global Security and Supply at 
the address listed in ADDRESSES; or (3) hand delivering an original and 
three paper copies of the filing to the Office of Oil and Gas Global 
Security and Supply at the address listed in ADDRESSES. All filings 
must include a reference to FE Docket No. 13-161-LNG. Please Note: If 
submitting a filing via email, please include all related documents and 
attachments (e.g., exhibits) in the original email correspondence. 
Please do not include any active hyperlinks or password protection in 
any of the documents or attachments related to the filing. All 
electronic filings submitted to DOE must follow these guidelines to 
ensure that all documents are filed in a timely manner. Any hardcopy 
filing submitted greater in length than 50 pages must also include, at 
the time of the filing, a digital copy on disk of the entire 
submission.
    A decisional record on the Application will be developed through 
responses to this notice by parties, including the parties' written 
comments and replies thereto. Additional procedures will be used as 
necessary to achieve a complete understanding of the facts and issues. 
A party seeking intervention may request that additional procedures be 
provided, such as additional written comments, an oral presentation, a 
conference, or trial-type hearing. Any request to file additional 
written comments should explain why they are necessary. Any request for 
an oral presentation should identify the substantial question of fact, 
law, or policy at issue, show that it is material and relevant to a 
decision in the proceeding, and demonstrate why an oral presentation is 
needed. Any request for a conference should demonstrate why the 
conference would materially advance the proceeding. Any request for a 
trial-type hearing must show that there are factual issues genuinely in 
dispute that are relevant and material to a decision, and that a trial-
type hearing is necessary for a full and true disclosure of the facts.
    If an additional procedure is scheduled, notice will be provided to 
all parties. If no party requests additional procedures, a final 
Opinion and Order may be issued based on the official record, including 
the Application and responses filed by parties pursuant to this notice, 
in accordance with 10 CFR 590.316.
    The Application is available for inspection and copying in the 
Division of Natural Gas Regulatory Activities docket room, Room 3E-042, 
1000 Independence Avenue SW., Washington, DC 20585. The docket room is 
open between the hours of 8:00 a.m. and 4:30 p.m., Monday through 
Friday, except Federal holidays. The Application and any filed 
protests, motions to intervene or notice of interventions, and comments 
will also be available electronically by going to the following DOE/FE 
Web address: http://www.fe.doe.gov/programs/gasregulation/index.html.

    Issued in Washington, DC, on July 25, 2014.
John A. Anderson,
Director, Division of Natural Gas Regulatory Activities, Office of Oil 
and Gas Global Security and Supply, Office of Oil and Natural Gas.
[FR Doc. 2014-18030 Filed 7-30-14; 8:45 am]
BILLING CODE 6450-01-P