LNG

Texas LNG Brownsville, the mid-scale export plant proposed by industry veterans Vivek Chandra and Langtry Meyer, has been handed a ruling by the Texas Commission on Environmental Quality that it would issue an air permit allowing the construction and operation of the liquefaction facility.

The project is one of three being developed around the South Texas port and will be built on a 625-acre site located on the Port of Brownsville's deepwater ship channel near plentiful natural gas supplies and pipelines.

Texas LNG plans to ship 4 million tonnes per annum of cargoes to established and emerging markets.

“We appreciate the hard work and effort from TCEQ and are pleased to have reached this important achievement that paves the way for a 2021 final investment decision and construction of an LNG facility consistent with all air emission regulations,” said the project’s joint founder Chandra who is Chief Executive.

“Though current LNG markets are unusual in terms of pricing and supply dynamics, Texas LNG is confident that its low-cost, flexible commercial model, and realistically-sized production volumes will be key differentiators, ideally suited for global customers when operations begin in 2025,” explained the CEO.

The other two projects planned for the Brownsville Ship Channel area are Rio Grande LNG run by Houston-based NextDecade Corp. and Annova LNG whose backers include Chicago-based power company Exelon Corp.

The Rio Grande venture plans to produce 27 MTPA while Annova is aiming for 6.95 MTPA.

Langtry Meyer, the other co-founder of Texas LNG Brownsville and who is Chief Operating Officer said his company was committed to operating in an environmentally responsible manner.

“This includes the use of electric motors instead of conventional gas turbine compressors to minimize air emissions, making the facility one of the world’s cleanest LNG liquefaction plants,” Meyer explained.

“By delivering clean, safe, low-cost Texas natural gas energy to our customers around the world, Texas LNG can contribute to a cleaner global environment,” he stated.

The TCEQ air permit adds to the November 2019 authorization from the Federal Energy Regulatory Commission to proceed with the project.

Other permits received include one from Department of Energy to export US-sourced LNG to any country with which trade is not prohibited by federal law or policy.

Texas LNG will aim to source low cost and abundant Permian Basin feed gas using third-party pipeline infrastructure and an efficient modular construction design for the plant.

Annova LNG, the medium-scale US project planned for the south bank of the Brownsville Ship Channel in Texas, and whose owners include Chicago-based power company Exelon Corp., has received one of its final permits to begin construction.

US LNG projects are facing stiffer opposition in the Rio Grande Valley as a state permit decision for the Texas LNG export project, one of three being developed near the Port of Brownsville, will have to wait at least another five months to progress.

Commissioners with the Texas Commission of Environmental Quality sent Texas LNG’s state permit application to the State Office of Administrative Hearings as a contested case based on a request from the City of Port Isabel.

Texas LNG is seeking permission from state and federal regulators to build a liquefaction plant In Cameron County along the Brownsville Ship Channel with initial capacity to export 4 million tonnes per annum.

The case is being followed closely by the “Houston Chronical” newspaper, which noted in a report that the project now faces tough opposition from “a coalition of neighboring communities, fishermen, shrimpers, environmentalists and Native Americans.”

The commissioners ruled that while Texas LNG is located outside Port Isabel's city limits, it falls within its extra territorial jurisdiction as it is part of the Brownsville metropolitan area.

Texas LNG Chief Operating Officer Langtry Meyer said the Houston-based company remains confident that it will receive a state environment permit.

“Texas LNG is committed to operating our project in an environmentally responsible manner, including using electric motors to minimize air emissions," said Meyer.

“By delivering clean, safe, low-cost Texas natural gas energy to our customers around the world, Texas LNG can contribute to a cleaner global environment.” he added.

The Texas LNG project is one of three being developed around Brownsville along with the Rio Grande LNG project of NextDecade Corp. and the Annova LNG venture, backed by Chicago-based utility company Exelon.

Texas LNG’s scope includes the building of two liquefaction Trains and support facilities as well as two LNG storage tanks, each of around 210,000 cubic metres capacity.

The LNG carrier berthing dock will be capable of receiving vessels with capacities of between 130,000 cubic metres and 180,000 cubic metres.

Meyer has said he was looking forward to allowing construction to begin and LNG production to commence by 2024.

“This project will bring jobs and investment to Cameron County and deliver clean, safe, abundant Texas natural gas energy to the world,” Meyer added in an earlier statement.

A final investment decision for Texas LNG is scheduled to be taken in the months ahead and is contingent on factors such as completing the required commercial agreements and obtaining financing.

Samsung Engineering of South Korea will provide all technical and engineering services for the project and is expected to take a minority stake.

The newspaper report noted that although multiple parties, communities and groups had requested “affected persons status” for Texas LNG's state permit application, Port Isabel was the only party in the state to receive it due to the project's location along State Highway 48.

The Texas environmental  commissioners ordered that the contested case hearing should take place within the next 150 days in the state capital Austin to address health and safety issues and impacts on plants and wildlife.

Port Isabel City Manager Jared Hockema told the “Houston Chronicle” that city officials are preparing for the hearing and plan to travel to Austin to testify against the project.

“We are gratified that the Commission recognized the clear impact that the proposed project will have on Port Isabel,” added Hockema.

“The city will continue to fight to protect our environment, our economy and our way of life from being destroyed by these LNG facilities,” the paper cited him as saying.