San Juan LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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San Juan LNG Terminal is a floating LNG terminal currently near San Juan, Puerto Rico.[1][2]

Location

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Project Details

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

The San Juan LNG Terminal is a floating LNG regasification terminal offshore of Puerto Rico. Its capacity is 0.5 mtpa and it is fully owned by New Fortress Energy. The terminal began operating in early 2020[1][2][4], despite having neglected to obtain the customary Natural Gas Act authorization from the Federal Energy Regulatory Commission.[7][8][9]

An investigation by the Institute for Energy Economics and Financial Analysis (IEEFA) discovered that the project's contract process was riddled with irregularities which provided unfair advantage to New Fortress Energy. In June 2020 the U.S. Federal Energy Regulatory Commission (FERC) issued an order to the company to show cause, within 30 days, why the LNG terminal facilities were not subject to FERC’s jurisdiction under section 3 of the Natural Gas Act.[10] The IEEFA report confirmed that New Fortress Energy had failed to seek FERC authorisation for the project.[11]

In 2022, the US Federal Court of Appeals for the DC Circuit ruled that New Fortress Energy had improperly sidestepped the FERC permitting process, and required the company to undergo an after-the-fact assessment of its operations.[12] However, the court exempted NFE from holding public hearings and allowed the San Juan terminal to continue operating without an approved emergency response plan, prompting ongoing pushback from environmentalists and civil society organizations.[7][13]

As of October 2024, the terminal continued to process incoming LNG shipments, including cargoes from New Fortress Energy's newly commissioned Altamira FLNG Terminal near Altamira, Mexico.[5][6]

Opposition

The terminal supplies a PREPA gas-burning plant. The developer built the facility without FERC authorization, claiming the terminal is outside of the commission’s jurisdiction under Section 3 of the Natural Gas Act. In March 2021, environmental groups were pushing PREPA to adopt renewable energy infrastructure more rapidly, and are calling for FERC to revisit the permitting process for the LNG terminal and to consider shutting it down. PREPA officials say the utility's strategy to continue burning gas is saving money compared with diesel-fired generation, while also lowering emissions.[2]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 2020 World LNG Report, page 129, International Gas Union, April 27, 2020
  2. 2.0 2.1 2.2 2.3 2.4 Robert Walton, FERC's expected jurisdiction claim over Puerto Rico LNG terminal could impact PREPA gas plant, renewables plans, Utility Drive, March 16, 2021
  3. GIIGNL 2021 Annual Report, accessed May 5, 2021
  4. 4.0 4.1 "New Fortress seeks US court review of FERC decision over Puerto Rico LNG facility". S&P Global. 2021-05-26.{{cite web}}: CS1 maint: url-status (link)
  5. 5.0 5.1 "Q3 2024 Investor Presentation". New Fortress Energy. November 7, 2024.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 "New Fortress Energy Provides Update on its Initial FLNG Asset". New Fortress Energy. 2024-10-25.{{cite web}}: CS1 maint: url-status (link)
  7. 7.0 7.1 "This fossil fuel company has put communities in Puerto Rico in harm's way for too long". Earthjustice. Retrieved 2024-11-11.
  8. "Puerto Rico LNG importer tells FERC it did not need agency approval for terminal". S&P Global. 2020-07-21.{{cite web}}: CS1 maint: url-status (link)
  9. "LNG terminal opens in Puerto Rico without required federal approval". Oil & Gas Watch. 2024-01-05.{{cite web}}: CS1 maint: url-status (link)
  10. "New Fortress Energy LLC Docket No. CP20-466-000 ORDER ON SHOW CAUSE" (PDF). UNITED STATES OF AMERICA FEDERAL ENERGY REGULATORY COMMISSION. 2021-06-18.{{cite web}}: CS1 maint: url-status (link)
  11. "IEEFA Puerto Rico: FERC orders New Fortress Energy to explain lack of permission for San Juan LNG facility", Institute for Energy Economics and Financial Analysis press release, Jun. 22, 2020
  12. "D.C. Circuit Court Rules New Fortress Energy LNG Terminal Must Undergo FERC Review". Earthjustice. 2022-06-16.{{cite web}}: CS1 maint: url-status (link)
  13. "A Ship Floating In Puerto Rico Could Become A Full-On Nightmare". HuffPost. 2024-10-19.{{cite web}}: CS1 maint: url-status (link)

Related GEM.wiki articles

Wikipedia also has an article on San Juan LNG Terminal. This article may use content from the Wikipedia article under the terms of the GFDL.