What’s this about LNG tanker, in Strom, Inc’s latest LNG export planning report?

Strom has insisted on liquid natural gas (LNG) in shipping containers since 2014, back when it tried to get FERC to state it wasn’t overseeing small-export LNG. Strom still aims to export through the Port of Tampa, and maybe other ports.

“As a direct result of recent Offtake and LNG supply requests, Strom may elect to file an amendment to our application to allow transportation of LNG by LNG tanker.”

Does that mean LNG tanker truck, such as I photographed rolling down I-75, and turning onto I-10 for Jacksonville, probably from Pivotal LNG in Georgia?

Or does it mean LNG tanker ship, like this one?

Photo: Pline, Le LNG RIVERS arrive à Brest pour son premier carénage, Creative Commons Attribution-Share Alike 3.0 Unported license.

According to Strom’s website they mean LNG tanker ships:

In Phase II, Strom will develop a larger LNG liquifaction facility along with bulk LNG storage and a marine loading facility to both refuel LNG powered ships and to bulk load tanker ships exporting LNG to strategic trading partners of the United States.

Whether “LNG tanker” means truck or ship, that’s very different from LNG in shipping containers. Bait and switch?

Remember, Strom is at the end of Sabal Trail’s Citrus County Pipeline that feeds the fracked methane power plant Duke Energy is building in Crystal River, and from the beginning Strom has said Sabal Trail will be one of its sources of gas. Was it right for Sabal Trail to use federal eminent domain to force landowners to give up easements so Strom could export to these destinations: China, Bahamas, Belize, and Panama, Mexico, Dominican Republic, and Honduras? Was it right for our rivers, wildlife, and safety to be risked for private profit through LNG export?

These are some of the reasons WWALS is fundraising for our DC attorneys to sue the Federal Energy Regulatory Commission (FERC) for shirking its LNG export oversight duty. You can help by contributing or by becoming a witness or a co-plaintiff, or by getting the word out.

 -jsq, John S. Quarterman, Suwannee RIVERKEEPER®

You can join this fun and work by becoming a WWALS member today!

Strom, Inc.’s Semi-annual report through 30 Sept 2018

This report is here: Strom, Inc., FE Docket No. 14-56-LNG; Semi-annual report for the period ending September 30st, 2018; Filed pursuant to Ordering Paragraph G of DOE/FE Order No. 3537

All Strom’s reports are here: SEMI-ANNUAL REPORTS FOR – STROM, INC. – FE DKT. NO. 14-56-LNG – ORDER NO 3537.

RECEIVED
By DOE/FE at 9:46 am, Oct 01, 2018

Strom Inc.
Energy in Motion
VIA ELECTRONIC MAIL TO FERGAS@HQ.DOE.GOV
September 30th, 2018

Department of Energy
Office of Oil and Gas Global Security and Supply
Docket Room 3E-042, FE-34
Forrestal Building
1000 Independence Avenue, S.W.
Washington, D.C. 20585
United States of America

Subject: Strom, Inc., FE Docket No. 14-56-LNG
Semi-annual report for the period ending September 30st, 2018
Filed pursuant to Ordering Paragraph G of DOE/FE Order No. 3537

Pursuant to Ordering Paragraph G of Order No. 3537 (“Order”) granting long-term, multi-contract authorization to export natural gas to any country that currently has, or in the future will have, the capacity to import LNG via approved ISO IM07/TV AC-ASME LNG (ISO) containers transported on ocean-going carriers, and with which the United States has a free trade agreement (“FTA”) providing for national treatment for trade in natural gas, on September 30th, 2018 (“Reporting Date”) in the above-referenced docket, Strom, Inc. (“Strom”) submits its semi-annual report for the period ending September 30st, 2018. In particular, Ordering Paragraph G states:

“Strom shall file with the Office of Oil and Gas Global Security and Supply, on a semi-annual basis, written reports describing the progress of the proposed Project. The reports shall be filed on or by April 1st and October 1st of each year and shall include information on the progress of the Project, the date the 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.”

Facility Progress Report

On April 18th, 2014, Strom filed an application with the Office of Fossil Energy (FE) of the Department of Energy (DOE) under section 3 of the Natural Gas Act (NGA) for long-term, multicontract authorization to export liquefied natural gas (LNG) produced from domestic sources. Once in operation, based on conservative assumptions regarding EPC design, ambient air temperatures at the liquefaction project site, the quality of feed gas supplying the project and maintenance downtime, Strom expects that commercial LNG production available for export will be as much as approximately 28.21 billion cubic feet per year (Bcf/yr) of natural gas (0.08 Bcf per day).

On October 21st, 2014, Strom received authorization from DOE/FE via the Order to export domestically produced LNG by ISO containers on vessels from the proposed Project. The Project will be constructed on a property site approximately 174 acres in size, to be located at 6700 Tallahassee Road, Crystal River, Florida. Strom has reached a tentative agreement with the Port of Tampa in Tampa Florida, for long-term leases for shipping of LNG.

Due to changing conditions in the emerging market for LNG exports, and some unforeseen delays, our estimate for construction has been moved back from the originally projected fourth quarter 2017. Strom is finalizing negotiations with two large domestic USA Infrastructure Funds to provide a combination and equity and debt capital required to initiate the preconstruction process in this year with a targeted completion to operating capacity in the third quarter of 2020.

We are actively engaged in the design concept stage of the plant and intend to file environmental study information by April 1, 2019. Strom has secured certain preliminary agreements for equipment and has selected AECOM to fill the role of our EPCM for the Project. AECOM is well versed in Oil and Gas and has been involved in a myriad of FERC approved Oil and Gas projects.

Status of Long-term LNG Export Contracts

Strom’s management team is actively engaged in the negotiations for the above design and financing paths and is now working to secure possible offtake customers upon completion. While Strom is still moving forward with several large-scale buyers, in September 2017 Strom’s parent company Glauben Besitz, LLC (Glauben) entered into a tentative term agreement with a trading company to pursue marketing and distribution of LNG in China. In March of this year, Glauben’s Board of Directors elected to terminate that agreement and pursue the other more favorable options.

Through third-party legal counsel and other paths, Strom is in discussions with electric power suppliers in China, Latin America, and several Caribbean countries. Specifically, Strom has received specific interest from LNG users in the Bahamas, Belize, and Panama, Mexico, Dominican Republic, Honduras and is pursuing all qualified leads. These requests for LNG will far exceed Strom’s authorized authority, and we will explore our options as we execute agreements. In accordance with Ordering Paragraph D of the Order, Strom will file any such long-term contracts with the DOE/FE following their execution.

Status of Long-term Gas Supply Contracts.

Strom has had productive negotiations with Tampa Electric Co. (TECO) regarding the transportation of natural gas to the facility and has received their “draft term sheet” confirming very competitive pricing for transportation of natural gas to the proposed plant.

As of the Reporting Date, Strom has not executed any such contracts for the long-term transportation or supply of U.S.-sourced natural gas. Strom continues to discuss terms and conditions with long-term suppliers and expects to achieve favorable results. In accordance with Ordering Paragraph D of the Order, Strom will file any such contracts associated with the long-term supply of natural gas to the Project with the DOE/FE following their execution.

Date Facility is Expected to be Operational

As previously mentioned in this report, Strom’s liquefaction facilities are expected to commence commercial operations in 2020, providing market conditions remain relatively stable. Strom is continuing to negotiate with several funding/infrastructure funds and will file the required reports with the DOE upon completion.

As a direct result of recent Offtake and LNG supply requests, Strom may elect to file an amendment to our application to allow transportation of LNG by LNG tanker. All such applications will provide a complete backup and the executed agreements including all necessary documents required to achieve a successful filing.

Any questions concerning this filing should be addressed to the undersigned at (727) 230 8840 or via email at deanwallace@glaubenbesitz.com

Respectfully Submitted,
[signed] Dean M. Wallace, PMP
President

 -jsq, John S. Quarterman, Suwannee RIVERKEEPER®

You can join this fun and work by becoming a WWALS member today!

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