Department of energy office of fossil energy



Yüklə 353,3 Kb.
Pdf görüntüsü
səhifə61/61
tarix30.12.2017
ölçüsü353,3 Kb.
#18883
1   ...   53   54   55   56   57   58   59   60   61

 
170 
public disclosure, and DOE/FE determines it will be afforded confidential treatment in 
accordance with 10 C.F.R. § 1004.11.
407
 
DOE/FE will require that Delfin file or cause to be filed with DOE/FE any relevant long-
term commercial agreements, including liquefaction tolling agreements, pursuant to which 
Delfin exports LNG as agent for a Registrant.   
DOE/FE finds that the submission of all such agreements or contracts within 30 days of 
their execution using the procedures described below will be consistent with the “to the extent 
practicable” requirement of section 590.202(b).  By way of example and without limitation, a 
“relevant long-term commercial agreement” would include an agreement with a minimum term 
of two years, an agreement to provide natural gas processing or liquefaction services at the 
Delfin Liquefaction Facility, a long-term sales contract involving natural gas or LNG stored or 
liquefied at the Delfin Liquefaction Facility, or an agreement to provide export services from the 
Delfin Liquefaction Facility.  
In addition, DOE/FE finds that section 590.202(c) of DOE/FE’s regulations
408
 requires 
that Delfin file, or cause to be filed, all long-term contracts associated with the long-term supply 
of natural gas to the Delfin Liquefaction Facility, whether signed by Delfin or the Registrant, 
within 30 days of their execution. 
DOE/FE recognizes that some information in Delfin’s or a Registrant’s long-term 
commercial agreements associated with the export of LNG, and/or long-term contracts 
associated with the long-term supply of natural gas to the Delfin Liquefaction Facility, may be 
commercially sensitive.  DOE/FE therefore will provide Delfin the option to file or cause to be 
filed either unredacted contracts, or in the alternative (A) Delfin may file, or cause to be filed, 
                                                 
407
 Id. § 590.202(e). 
408
 Id. § 590.202(c). 


 
171 
long-term contracts under seal, but it also will file either:  i) a copy of each long-term contract 
with commercially sensitive information redacted, or ii) a summary of all major provisions of the 
contract(s) including, but not limited to, the parties to each contract, contract term, quantity, any 
take or pay or equivalent provisions/conditions, destinations, re-sale provisions, and other 
relevant provisions; and (B) the filing must demonstrate why the redacted information should be 
exempted from public disclosure. 
To ensure that DOE/FE destination and reporting requirements included in this Order are 
conveyed to subsequent title holders, DOE/FE will include as a condition of this authorization 
that future contracts for the sale or transfer of LNG exported pursuant to this Order shall include 
an acknowledgement of these requirements. 
G.
 
Export Quantity  
In the Application, Delfin sought authorization to export up 657.5 Bcf/yr of natural gas 
(1.8 Bcf/d), which is within the maximum liquefaction capacity of the Delfin Liquefaction 
Facility as approved by MARAD.
409
  As set forth herein, this Order authorizes the export of 
LNG in the full amount requested, up to the equivalent of 657.5 Bcf/yr of natural gas.   
H.
 
Combined FTA and Non-FTA Export Authorization Volumes 
Delfin is currently authorized in DOE/FE Order No. 3393 to export domestically 
produced LNG to FTA countries in a volume equivalent to approximately 657.5 Bcf/yr of natural 
gas.  Because the source of LNG for that FTA order and this Order is the Delfin Liquefaction 
Facility, Delfin may not treat the volumes as additive to one another. 
 
 
                                                 
409
 See MARAD ROD at 10-11; Final EIS at xxii, 2-1. 


 
172 
XIV.
 
FINDINGS 
On the basis of the findings and conclusions set forth above, we find that it has not been 
shown that a grant of the requested authorization will be inconsistent with the public interest, and 
we further find that Delfin’s Application should be granted subject to the Terms and Conditions 
set forth herein.  The following Ordering Paragraphs reflect current DOE/FE practice. 
XV.
 
ORDER 
Pursuant to section 3 of the Natural Gas Act, it is ordered that: 
A.  Delfin LNG LLC (Delfin) is authorized to export domestically produced LNG by 
vessel from the proposed floating Delfin Liquefaction Facility, to be located in West Cameron 
Block 167 in the Gulf of Mexico, offshore of Cameron Parish, Louisiana.  Delfin is authorized to 
export this LNG in a volume equivalent to 657.5 Bcf/yr of natural gas on its own behalf and as 
agent for other entities that hold title to the natural gas, pursuant to one or more long-term 
contracts (a contract greater than two years). 
B.  The 20-year authorization period will commence when Delfin commences 
commercial export of domestically sourced LNG from the Delfin Liquefaction Facility, but not 
before.  Delfin may export Commissioning Volumes prior to the commencement of the terms of 
this Order, pursuant to a separate short-term export authorization.  The Commissioning Volumes 
will not be counted against the maximum level of volumes previously authorized in Delfin’s 
FTA order (DOE/FE Order No. 3393) or in this Order. 
C.  Delfin may continue exporting for a total of three years following the end of the 20-
year export term, solely to export any Make-Up Volume that it was unable to export during the 
original export period.  The three-year Make-Up Period allowing the export of Make-Up 
Volumes does not affect or modify the maximum volume of LNG authorized for export in 
Delfin’s existing FTA order (DOE/FE Order No. 3393) or in this Order.  Insofar as Delfin may 


 
173 
seek to export additional volumes not previously authorized for export, it will be required to 
obtain appropriate authorization from DOE/FE. 
D.  Delfin must commence export operations using the planned liquefaction facilities no 
later than seven years from the date of issuance of this Order.   
E.  The LNG export quantity authorized in this Order is equivalent to 657.5 Bcf/yr of 
natural gas.  This quantity is not additive to the export volume in Delfin’s existing FTA order, set 
forth in DOE/FE Order No. 3393. 
F.  This LNG may be exported to any country with which the United States does not have 
a FTA requiring the national treatment for trade in natural gas, which currently has or in the 
future develops the capacity to import LNG, and with which trade is not prohibited by United 
States law or policy. 
G.  Delfin shall ensure that all transactions authorized by this Order are permitted and 
lawful under United States laws and policies, including the rules, regulations, orders, policies, 
and other determinations of the Office of Foreign Assets Control of the United States 
Department of the Treasury, MARAD, and FERC.  Failure to comply with this requirement 
could result in rescission of this authorization and/or other civil or criminal remedies. 
H.  Delfin shall ensure compliance with all terms and conditions described by MARAD 
in its Record of Decision dated March 13, 2017, and/or imposed in MARAD’s forthcoming 
deepwater port license for Delfin.
  
Additionally, this authorization is conditioned on Delfin’s 
receipt of all connected local, state, and federal permits (including FERC’s authorization under 
Section 7 of the Natural Gas Act for the Delfin Onshore Facility), and on Delfin’s on-going 
compliance with any other preventative and mitigative measures at the Delfin Liquefaction 
Facility imposed by MARAD or any other federal or state agencies. 


 
174 
I.  (i)  Delfin shall file, or cause others to file, with the Office of Regulation and 
International Engagement a non-redacted copy of all executed long-term contracts associated 
with the long-term export of LNG as agent for other entities from the Delfin Liquefaction 
Facility.  The non-redacted copies may be filed under seal and must be filed within 30 days of 
their execution.  Additionally, if Delfin has filed the contracts described in the preceding 
sentence under seal or subject to a claim of confidentiality or privilege, within 30 days of their 
execution, Delfin shall also file, or cause others to file, for public posting either:  (a) a redacted 
version of the contracts described in the preceding sentence, or (b) major provisions of the 
contracts.  In these filings, Delfin shall state why the redacted or non-disclosed information 
should be exempted from public disclosure. 
(ii)  Delfin shall file, or cause others to file, with the Office of Regulation and 
International Engagement a non-redacted copy of all executed long-term contracts associated 
with the long-term supply of natural gas to the Delfin Liquefaction Facility.  The non-redacted 
copies may be filed under seal and must be filed within 30 days of their execution.  Additionally, 
if Delfin has filed the contracts described in the preceding sentence under seal or subject to a 
claim of confidentiality or privilege, within 30 days of their execution, Delfin shall also file, or 
cause others to file, for public posting either:  i) a redacted version of the contracts described in 
the preceding sentence, or ii) major provisions of the contracts.  In these filings, Delfin shall state 
why the redacted or non-disclosed information should be exempted from public disclosure. 
J.  Delfin, or others for whom Delfin acts as agent, shall include the following provision 
in any agreement or other contract for the sale or transfer of LNG exported pursuant to this Order 
and any other applicable DOE/FE authorization: 
Customer or purchaser acknowledges and agrees that it will resell or transfer U.S.-
sourced natural gas in the form of LNG purchased hereunder for delivery only to 


 
175 
countries identified in Ordering Paragraph F of DOE/FE Order No. 4028, issued 
June 1, 2017, in FE Docket No. 13-147-LNG and/or to purchasers that have agreed 
in writing to  limit their direct or indirect resale or transfer of such LNG to such 
countries.  Customer or purchaser further commits to cause a report to be provided 
to  Delfin LNG LLC that identifies the country of destination  (or countries)  into 
which the exported LNG or natural gas was actually delivered and/or received for 
end use, and to include in any resale contract for such LNG the necessary conditions 
to insure that Delfin LNG LLC is made aware of all such actual destination 
countries. 
 
K.   Delfin is permitted to use its authorization in order to export LNG as agent for other 
entities, after registering such entities with DOE/FE.  Registration materials shall include an 
acknowledgement and agreement by the Registrant to supply Delfin with all information 
necessary to permit Delfin to register that person or entity with DOE/FE, including:  (1) the 
Registrant’s agreement to comply with this Order and all applicable requirements of DOE/FE’s 
regulations at 10 C.F.R. Part 590, including but not limited to destination restrictions; (2) the 
exact legal name of the Registrant, state/location of incorporation/registration, primary place of 
doing business, and the Registrant’s ownership structure, including the ultimate parent entity if 
the Registrant is a subsidiary or affiliate of another entity; (3) the name, title, mailing address, e-
mail address, and telephone number of a corporate officer or employee of the Registrant to 
whom inquiries may be directed; and (4) within 30 days of execution, a copy of any long-term 
contracts not previously filed with DOE/FE, described in Ordering Paragraph I of this Order. 
L.  Each registration submitted pursuant to this Order shall have current information on 
file with DOE/FE.  Any changes in company name, contact information, change in term of the 
long-term contract, termination of the long-term contract, or other relevant modification, shall be 
filed with DOE/FE within 30 days of such change(s). 
M.  As a condition of this authorization, Delfin shall ensure that all persons required by 
this Order to register with DOE/FE have done so.  Any failure by Delfin to ensure that all such 


 
176 
persons or entities are registered with DOE/FE shall be grounds for rescinding in whole or in part 
the authorization. 
N.  Within two weeks after the first export of domestically produced LNG occurs from 
the Delfin Liquefaction Facility, Delfin shall provide written notification of the date that the first 
export of LNG authorized in Ordering Paragraph A above occurred. 
O.  Delfin shall file with the Office of Regulation and International Engagement, on a 
semi-annual basis, written reports describing the progress of the Delfin Liquefaction Facility.  
The reports shall be filed on or by April 1 and October 1 of each year, and shall include 
information on the progress of the Delfin Liquefaction Facility, the date the Liquefaction Facility 
is expected to be operational, and the status of the long-term contracts associated with the long-
term export of LNG and any long-term supply contracts. 
P.  With respect to any change in control of the authorization holder, Delfin must comply 
with DOE/FE’s Procedures for Change in Control Affecting Applications and Authorizations to 
Import or Export Natural Gas.
410
  For purposes of this Ordering Paragraph, a “change in control” 
shall include any change, directly or indirectly, of the power to direct the management or policies 
of Delfin, whether such power is exercised through one or more intermediary companies or 
pursuant to an agreement, written or oral, and whether such power is established through 
ownership or voting of securities, or common directors, officers, or stockholders, or voting trusts, 
holding trusts, or debt holdings, or contract, or any other direct or indirect means.
411
 
Q.  Monthly Reports:  With respect to the LNG exports authorized by this Order, Delfin 
shall file with the Office of Regulation and International Engagement, within 30 days following 
the last day of each calendar month, a report indicating whether exports of LNG have been made.  
                                                 
410
 See Procedures for Changes in Control at 65,541-42. 
411
 See id. at 65,542. 


Document Outline

  • DEPARTMENT OF ENERGY
  • OFFICE OF FOSSIL ENERGY
  • OPINION AND ORDER GRANTING LONG-TERM, MULTI-CONTRACT AUTHORIZATION TO EXPORT LIQUEFIED NATURAL GAS
  • BY VESSEL FROM A PROPOSED FLOATING LIQUEFACTION PROJECT
  • AND DEEPWATER PORT 30 MILES OFFSHORE OF LOUISIANA
  • TO NON-FREE TRADE AGREEMENT NATIONS
  • DOE/FE ORDER NO. 4028
  • I. INTRODUCTION
  • II. SUMMARY OF FINDINGS AND CONCLUSIONS
  • III. PUBLIC INTEREST STANDARD
  • IV. DESCRIPTION OF REQUEST
    • A. Description of Applicant
    • B. Proposed Liquefaction Facility
    • C. Procedural History
    • D. Business Model
    • E. Source of Natural Gas
  • V. APPLICANT’S PUBLIC INTEREST ANALYSIS
    • A. Unique Benefits of the Liquefaction Facility
    • B. Adequacy of Domestic Supply
    • C. Impact on Domestic Natural Gas Prices
    • D. Domestic Benefits of LNG Exports
  • VI. CURRENT PROCEEDING BEFORE DOE/FE
    • A. Overview
    • B. API’s Motion to Intervene and Comments
    • C. V4EI’s Motion to Intervene and Protest
    • D. APGA’s Motion to Intervene and Protest
    • E. Sierra Club’s Motion to Intervene, Protest, and Comments
      • 1. Alleged Scope of Environmental Impact Statement
      • 2. Alleged Environmental Impacts from the Requested Authorization
      • 3. Alleged Economic Impacts from the Requested Authorization
    • F. Delfin’s Consolidated Response
    • G. Sierra Club’s Renewed Motion to Reply and Reply
  • VII. DOE/FE’S LNG EXPORT STUDIES
    • A. 2012 LNG Export Study
    • B. 2014 EIA LNG Export Study, Effect of Increased Levels of Liquefied Natural Gas Exports on U.S. Energy Markets
      • 1. Methodology
      • 2. Scope of EIA Study
      • 3. Results of the 2014 EIA LNG Export Study
      • 4. Increased Natural Gas Prices
      • 5. Increased Natural Gas Production and Supply
      • 6. Decreased Domestic Natural Gas Consumption
      • 7. Energy-Related Carbon Dioxide Emissions
      • 8. Increased End-User Natural Gas and Electricity Delivered Prices
      • 9. Increased Gross Domestic Product
    • C. 2015 LNG Export Study, The Macroeconomic Impact of Increasing                                 U.S. LNG Exports
      • 1. Overview of Rice-Oxford’s Findings in the 2015 Study
      • 2. Methodology
      • 3. Natural Gas Market Assumptions Across International Demand Scenarios
      • 4. The Rice World Gas Trade Model
      • 5. The Oxford Global Economic Model and Global Industry Model
      • 6. Results of the 2015 LNG Export Study
  • VIII. COMMENTS ON THE 2014 AND 2015 LNG EXPORT STUDIES                                                    AND DOE/FE ANALYSIS
    • A. Data Inputs and Estimates of Natural Gas Demand
    • B. Distributional Impacts
      • 1. Gross Domestic Product (GDP)
        • a. Comments
        • b. DOE/FE Analysis
      • 2. Sectoral Impacts
        • a. Comments
        • b. DOE/FE Analysis
      • 3. Household and Distributional Impacts
        • a. Comments
        • b. DOE/FE Analysis
      • 4. Regional Impacts
        • a. Comments
        • b. DOE/FE Analysis
    • C. Estimates of Domestic Natural Gas Supplies
      • 1. Comments
      • 2. DOE/FE Analysis
        • a. Measures of Supply
        • b. Supply Impacts
        • c. Supply Impacts Related to Renewable Energy Sources
    • D. Modeling the LNG Export Business
      • 1. Comments
      • 2. DOE/FE Analysis
    • E. Cost of Environmental Externalities
      • 1. Comments
      • 2. DOE/FE Analysis
    • F. Prices and Volatility
      • 1. Natural Gas Price Volatility
        • a. Comments
        • b. DOE/FE Analysis
      • 2. Linking the Domestic Price of Natural Gas to World Prices
        • a. Comments
        • By contrast, API argues that natural gas prices will not rise to global prices because the market will limit the amount of U.S. natural gas that will be exported, since liquefaction, transportation, and regasification costs act as a cushion.  API argu...
        • b. DOE/FE Analysis
  • IX. DOE/FE ADDENDUM TO ENVIRONMENTAL REVIEW DOCUMENTS CONCERNING EXPORTS OF NATURAL GAS FROM THE UNITED STATES
    • A. Water Resources
      • 1. Water Quantity
      • 2. Water Quality
    • B. Air Quality
    • C. GHG Emissions
    • D. Induced Seismicity
    • E. Land Use
  • X. DOE/FE LIFE CYCLE GREENHOUSE GAS PERSPECTIVE ON EXPORTING LIQUEFIED NATURAL GAS FROM THE UNITED STATES
    • A. Description of LCA GHG Report
      • 1. Purpose of the LCA GHG Report
      • 2. Study Scenarios
      • 3. GHGs Reported as Carbon Dioxide Equivalents
      • 4. Natural Gas Modeling Approach
      • 5. Coal Modeling Approach
      • 6. Key Modeling Parameters
      • 7. Results of the LCA GHG Report
    • B. Comments on the LCA GHG Report and DOE/FE Analysis
      • 1. Study Conclusions
        • a. Comments
        • b. DOE/FE Analysis
      • 2. Boundaries of the LCA GHG Report
        • a. Comments
        • b. DOE/FE Analysis
      • 3. Natural Gas Transport between Regasification and Power Plants
        • a. Comments
        • b. DOE/FE Analysis
      • 4. Data Quality for LNG Infrastructure, Natural Gas Extraction, and Coal Mining
        • a. Comments
        • b. DOE/FE Analysis
          • (1) Liquefaction Data
          • (2) Natural Gas Methane Data
          • (3) Coal Methane Data
      • 5. Methane Leakage Rate Used in the LCA GHG Report
        • a. Comments
        • b. DOE/FE Analysis
      • 6. The Uncertainty Bounds of the LCA GHG Report
        • a. Comments
        • b. DOE/FE Analysis
      • 7. The LCA GHG Report and the NEPA Approval Process
        • a. Comments
        • b. DOE/FE Analysis
  • XI. MARAD PROCEEDING AND GRANT OF DEEPWATER PORT LICENSE
    • A. Statutory Background
      • 1. The Deepwater Port Act of 1974
      • 2. NEPA
    • B. MARAD’s Procedural History
    • C. MARAD’s Record of Decision
  • XII. DISCUSSION AND CONCLUSIONS
    • A. Motions to Intervene
    • B. Non-Environmental Issues
      • 1. Delfin’s Application
      • 2. Regional Impacts
      • 3. Price Impacts
      • 4. Significance of the 2014 and 2015 LNG Export Studies
      • 5. Benefits of International Trade
    • C. Environmental Issues
      • 1. Adoption of MARAD’s Final EIS
      • 2. Scope of NEPA Review
      • 3. Cumulative Environmental Impacts
      • 4. Environmental Impacts Associated with Induced Production of Natural Gas
      • 5. Compliance with the Endangered Species Act
      • 6. Greenhouse Gas Impacts Associated with U.S. LNG Exports
        • a. Domestic Environmental Impacts Associated with Increased Natural Gas Prices
        • b. International Impacts Associated with Energy Consumption in Foreign Nations
    • D. Other Considerations
    • E. Conclusion
  • XIII. TERMS AND CONDITIONS
    • A. Term of the Authorization
    • B. Commencement of Operations Within Seven Years
    • C. Commissioning Volumes
    • D. Transfer, Assignment, or Change in Control
    • E. Agency Rights
    • F. Contract Provisions for the Sale or Transfer of LNG to be Exported
    • G. Export Quantity
    • H. Combined FTA and Non-FTA Export Authorization Volumes
  • XIV. FINDINGS
  • XV. ORDER

Yüklə 353,3 Kb.

Dostları ilə paylaş:
1   ...   53   54   55   56   57   58   59   60   61




Verilənlər bazası müəlliflik hüququ ilə müdafiə olunur ©www.genderi.org 2024
rəhbərliyinə müraciət

    Ana səhifə