[Federal Register Volume 83, Number 209 (Monday, October 29, 2018)]
[Notices]
[Pages 54337-54338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23471]


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DEPARTMENT OF ENERGY

[FE Docket No. 18-145-LNG]


Energ[iacute]a Costa Azul S. de R.L. de C.V; Application for 
Long-Term, Multi-Contract Authorization To Export Natural Gas to Mexico 
and To Export Liquefied Natural Gas to Non-Free Trade Agreement Nations

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 
September 27, 2018, by Energ[iacute]a Costa Azul S. de R.L. de C.V 
(Energ[iacute]a Costa Azul), a subsidiary of Infrastructura Energetica 
Nova, S.A.B. de C.V. (IEnova) and IEnova's subsidiaries. A majority of 
the ownership interests in IEnova (66.43%) is held by indirect, wholly-
owned subsidiaries of Sempra Energy, a publicly traded California 
corporation. The Application requests long-term, multi-contract 
authorization to export domestically produced natural gas to Mexico in 
a volume up to 545 billion cubic feet (Bcf) per year (Bcf/yr) (1.5 Bcf 
per day), and to re-export a portion of this natural gas as liquefied 
natural gas (LNG) in a volume equivalent to 475 Bcf/yr of natural gas 
(1.3 Bcf per day). Energ[iacute]a Costa Azul seeks to export this LNG 
from the proposed Energ[iacute]a Costa Azul Large-Scale Project, which 
consists of certain liquefaction and export terminal facilities located 
on the site of Energ[iacute]a Costa Azul's existing LNG import terminal 
north of Ensenada, Baja California, Mexico. The volumes for which 
Energ[iacute]a Costa Azul seeks authorization in this Application would 
be additive to the volumes for which Energ[iacute]a Costa Azul seeks 
authorization in its application in FE Docket No. 18-144-LNG. 
Energ[iacute]a Costa Azul requests authorization to export this; LNG 
to: (i) Countries with which the United States has entered into a free 
trade agreement (FTA) requiring national treatment for trade in natural 
gas (FTA countries) and (ii) any other countries with which trade is 
not prohibited by U.S. law or policy (non-FTA countries). 
Energ[iacute]a Costa Azul seeks to export the requested volume of 
natural gas and the requested volume of LNG on its own behalf and as 
agent for other entities who hold title to the natural gas at the time 
of export. Energ[iacute]a Costa Azul requests the authorization for a 
20-year term to commence on the earlier of the date of first export or 
seven years from the issuance of the requested authorization. 
Energ[iacute]a Costa Azul further requests authorization to continue 
exporting for a total of three years following the end of the 20-year 
authorization term requested herein, solely to export any volumes that 
it is unable to export during the 20-year authorization term (Make-Up 
Volumes). Energ[iacute]a Costa Azul filed the Application under section 
3 of the Natural Gas Act (NGA). Additional details and related 
procedural history can be found in Energ[iacute]a Costa Azul's 
Application, posted on the DOE/FE website at: https://www.energy.gov/fe/downloads/energ-costa-azul-s-de-rl-de-cv-dkt-no-18-145-lng. 
Protests, motions to intervene, notices of intervention, and written 
comments are invited.

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, December 28, 
2018.

ADDRESSES: 
    Electronic Filing by email: [email protected].
    Regular Mail: U.S. Department of Energy (FE-34), Office of 
Regulation, Analysis, and Engagement, 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 Regulation, 
Analysis, and Engagement, Office of Fossil Energy, Forrestal Building, 
Room 3E-042, 1000 Independence Avenue SW, Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT:  Benjamin Nussdorf or Larine Moore, 
U.S. Department of Energy (FE-34), Office of Regulation, Analysis, and 
Engagement, Office of Fossil Energy, Forrestal Building, Room 3E-042, 
1000 Independence Avenue SW, Washington, DC 20585, (202) 586-7970; 
(202) 586-9478. Cassandra Bernstein or Ronald (R.J.) Colwell, U.S. 
Department of Energy (GC-76), Office of the Assistant General Counsel 
for Electricity and Fossil Energy, Forrestal Building, 1000 
Independence Avenue SW, Washington,

[[Page 54338]]

DC 20585, (202) 586-9793; (202) 586-8499.

SUPPLEMENTARY INFORMATION: 

DOE/FE Evaluation

    In the Application, Energ[iacute]a Costa Azul requests 
authorization to export LNG from the proposed Energ[iacute]a Costa Azul 
liquefaction and export terminal facilities to both FTA countries and 
non-FTA countries. This Notice applies only to the portion of the 
Application requesting authority to export LNG to non-FTA countries 
pursuant to section 3(a) of the NGA, 15 U.S.C. 717b(a). DOE/FE will 
review Energ[iacute]a Costa Azul's request for a FTA export 
authorization separately pursuant to section 3(c) of the NGA, 15 U.S.C. 
717b(c).
    In reviewing Energ[iacute]a Costa Azul's request for a non-FTA 
authorization, DOE will consider any issues required by law or policy. 
DOE will consider domestic need for the natural gas, as well as any 
other issues determined to be appropriate, including whether the 
arrangement is consistent with DOE's policy of promoting competition in 
the marketplace by allowing commercial parties to freely negotiate 
their own trade arrangements. As part of this analysis, DOE will 
consider one or more of the following studies examining the cumulative 
impacts of exporting domestically produced LNG:
     Effect of Increased Levels of Liquefied Natural Gas on 
U.S. Energy Markets, conducted by the U.S. Energy Information 
Administration upon DOE's request (2014 EIA LNG Export Study); \1\
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    \1\ The 2014 EIA LNG Export Study, published on Oct. 29, 2014, 
is available at: https://www.eia.gov/analysis/requests/fe/.
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     The Macroeconomic Impact of Increasing U.S. LNG Exports, 
conducted jointly by the Center for Energy Studies at Rice University's 
Baker Institute for Public Policy and Oxford Economics, on behalf of 
DOE (2015 LNG Export Study); \2\ and
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    \2\ The 2015 LNG Export Study, dated Oct. 29, 2015, is available 
at: http://energy.gov/sites/prod/files/2015/12/f27/20151113_macro_impact_of_lng_exports_0.pdf.
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     Macroeconomic Outcomes of Market Determined Levels of U.S. 
LNG Exports, conducted by NERA Economic Consulting on behalf of DOE 
(2018 LNG Export Study).\3\
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    \3\ The 2018 LNG Export Study, dated June 7, 2018, is available 
at: https://www.energy.gov/sites/prod/files/2018/06/f52/Macroeconomic%20LNG%20Export%20Study%202018.pdf. DOE is currently 
evaluating public comments received on this Study (83 FR 27314).
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    Additionally, DOE will consider the following environmental 
documents:
     Addendum to Environmental Review Documents Concerning 
Exports of Natural Gas From the United States, 79 FR 48132 (Aug. 15, 
2014); \4\ and
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    \4\ The Addendum and related documents are available at: https://www.energy.gov/sites/prod/files/2014/08/f18/Addendum.pdf.
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     Life Cycle Greenhouse Gas Perspective on Exporting 
Liquefied Natural Gas from the United States, 79 FR 32260 (June 4, 
2014).\5\
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    \5\ The Life Cycle Greenhouse Gas Report is available at: http://energy.gov/fe/life-cycle-greenhouse-gas-perspective-exporting-liquefied-natural-gas-united-states.

Parties that may oppose this Application should address these issues 
and documents in their comments and/or protests, as well as other 
issues deemed relevant to the Application.
    The National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et 
seq., requires DOE to give appropriate consideration to the 
environmental effects of its proposed decisions. No final decision will 
be issued in this proceeding until DOE has met its environmental 
responsibilities.

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. Interested parties will be provided 60 days from the date 
of publication of this Notice in which to submit comments, protests, 
motions to intervene, or notices of intervention.
    Any person wishing to become a party to the proceeding must file a 
motion to intervene or notice of intervention. 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. 18-145-LNG 
in the title line; (2) mailing an original and three paper copies of 
the filing to the Office of Regulation, Analysis, and Engagement at the 
address listed in ADDRESSES; or (3) hand delivering an original and 
three paper copies of the filing to the Office of Regulation, Analysis, 
and Engagement at the address listed in ADDRESSES. All filings must 
include a reference to FE Docket No. 18-145-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. 
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 
Office of Regulation, Analysis, and Engagement 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.

    Signed in Washington, DC, on October 23, 2018.
Amy Sweeney,
Director, Division of Natural Gas Regulation.
[FR Doc. 2018-23471 Filed 10-26-18; 8:45 am]
 BILLING CODE 6450-01-P