Strom LNG reports late to FE: reverse merger expected 2020-11-01 | WWALS Watershed Coalition (WWALS) is Suwannee RIVERKEEPER®

Update 2021-04-04: Late again: Strom Inc. semi-annual report to DoE FE about Crystal River LNG 2021-04-04.

Apparently Strom Inc. of the long-touted future LNG export operation in Crystal River, Florida, thinks some public company is so desperate for cash that it will let Strom take over its board for money.

“Additionally, Strom, Inc. is actively in early stage negotiations with a third-party entity regarding a reverse-merger and anticipate filing a report upon completion.”

What money? From a “term-sheet agreement” from un-named financiers that Strom has been claiming since at least April 2020. Lots of big talk, little LNG export action. Which is good news for Crystal River and Tampa, since the most likely export route for Strom would be by truck to Port of Tampa.

Report, Map

Strom also has big plans for exporting to “China, Latin America, and several Caribbean countries.”

“Specifically, Strom has received specific interest from LNG users in the Bahamas, China, Belize, Panama, Mexico, Dominican Republic, Honduras and is pursuing all qualified leads. These requests for LNG will far exceed Strom’s authorized capacity, 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.”

Specifically, interest is not a contract.

This is interesting:

“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.”

Yes, AECOM was involved in for instance Elba Island LNG in Georgia.

But Strom LNG in Crystal River, FL, is not a FERC-approved project. Back in 2014 when Strom still planned to locate in Starke, FL, Strom filed with FERC for a Notice of Petition for Declaratory Order re Strom, Inc. under CP14-121. But FERC dismissed that request for lack of fee payment. No other FERC docket for Strom has appeared, so apparently Strom has neither FERC approval nor a declaratory order for Strom’s “mobile liquefaction unit be eligible to export LNG with exemption from FERC’s jurisdiction under the Natural Gas Act.”

As usual, Strom’s report was late. At least, unlike most of its earlier reports, it arrived before a WWALS member had to ask FE where it was.

Strom, Inc., Semi-Annual Report for October 2020

Here’s is Strom’s report, for FE Docket # 14-56-LNG, Order No. 3537. See also the PDF.

RECEIVED
By Docket Room at 8:26 am, Oct 26, 2020
STROM Inc.
Energy in Motion
VIA ELECTRONIC MAIL TO FERGAS@HQ.DOE.GOV
October 20^th, 2020
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 30^th, 2020
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 29^th, 2020 (“Reporting Date”) in the above-referenced docket, Strom, Inc. (“Strom”) submits its semi-annual report for the period ending September 30″, 2020. 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 1* and October 1* 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 18^th, 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, multi- contract 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 21^st, 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, we have revised our estimate for construction. Strom has entered into a binding term sheet with a large international oil and gas supplier that will provide Strom with a combination equity and debt capital required to initiate the pre-construction process in this year with a targeted beginning operating capacity in the fourth quarter of 2022.

We are actively engaged in the design concept stage of the plant and intend to file environmental study information as soon as practicable. 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 has been actively engaged in the negotiations and term sheet described above that will include Offtake customers upon completion. Strom’s parent company Glauben Besitz, LLC (Glauben) has also entered into a term sheet agreement to pursue marketing and distribution of LNG in China. Additionally, Strom, Inc. is actively in early stage negotiations with a third-party entity regarding a reverse-merger and anticipate filing a report upon completion.

Through third-party legal counsel and other paths, Strom has continued 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, China, Belize, Panama, Mexico, Dominican Republic, Honduras and is pursuing all qualified leads. These requests for LNG will far exceed Strom’s authorized capacity, 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 the fourth quarter of 2022, providing COVID-19 does not have a prolong negative effect, on the market conditions. Strom is continuing to negotiate with several funding/infrastructure funds and will file the required reports with the DOE upon completion.

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