LNG

Bechtel Energy, the leading US and global liquefied natural gas engineering and construction company, said it was looking to hire for more than 500 roles for the Port Arthur LNG export project in Texas as building gets underway.

NextDecade Corp., the developer of the Rio Grande LNG export project in Brownsville in Texas, has entered into a credit agreement with a group of lenders for $356 million of senior loans to finance a portion of the first three liquefaction Trains.

The US Golden Pass LNG export project on the Gulf Coast, owned by Qatar Petroleum and ExxonMobil, is requesting authorization from the Federal Energy Regulatory Commission to begin the work covered in the latest part of its Implementation Plan and including the foundations of the first liquefaction Train by mid-October 2020.

The FERC formally approved the transformation of the Golden Pass import terminal located on the Sabine-Neches Waterway in Texas into an export plant in December 2016.

The Qatar-ExxonMobil project is building three liquefaction Trains with around 16 million tonnes per annum of output.

The first Train is still scheduled to come on stream in 2024, with Train 2 expected to follow six-to-eight months later, and Train 3 six-to-eight months after that.

Golden Pass has continued to progress its site development activities since 2019 and has now submitted the next chapter of the Implementation Plan to expand work at the site.

The project’s engineering, procurement and construction contractor is a joint venture comprising Chiyoda Corp. of Japan and US companies McDermott International and Zachry Group.

The EPC companies have been making sure that local businesses received priority consideration for work and has awarded 34 local sub-contracts since actual construction began in May 2020.

The part of the Implementation Plan referred to in the latest FERC filing includes the installation of the foundations in the LNG Train 1 Area.

“While Southeast Texas perseveres through the Covid-19 crisis, many companies and residents are getting a boost from opportunity brought to the area by the Golden Pass LNG export project,” the developers have said.

The EPC contractors said they had already committed over $245 million to local businesses so far, and more than 650 local residents were working on the construction site as of the start of August 2020.

The companies noted that the schedule for the Golden Pass Project remains the same as the schedule that was provided in the Implementation Plan.

Part of the latest information exchange with the FERC covered the foundation calculations for the steel piperack (Pipe Bridge) in Train 1

“Golden Pass shall file with the Secretary the following information, stamped and sealed by the professional engineer-of-record in the state of Texas: a. site preparation drawings and specifications; b. LNG liquefaction facility structures and foundation design drawings and calculations (including prefabricated and field constructed structures); c. seismic specifications for procured equipment; and d. quality control procedures to be used for civil-structural design and construction,” it explained to the FERC.

Golden Pass requested that the information in this part of the plan (Volume II) be treated as “privileged and confidential”, and that it not be released to the public.

“This information contains proprietary information that is customarily treated as privileged and confidential and disclosure of this information could result in commercial and competitive harm to Golden Pass,” the developers told the FERC.

Qatar Petroleum owns 70 percent of the project and 30 percent is held by ExxonMobil.

The US major is also Qatar’s main partner in the existing Trains in Qatar itself which produce 77 MTPA and will be expanded to 110 MTPA.

ExxonMobil has said that the Golden Pass project is building on the other successful international relationship between the two in exploration and development activities in nations such as Argentina, Brazil and Mozambique.

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.

The US Annova liquefied natural gas export project planned for the south bank of the Brownsville Ship Channel in Texas, and whose owners include Chicago-based power company Exelon Corp., has signed a facilities agreement to book all the transmission needs of the plant.

Annova’s accord is with the South Texas Electrical Cooperative (STEC) for 405 megawatts of power for the export plant with capacity to produce 6.0 million tonnes per annum of LNG.

“The Annova LNG project has a significantly lower environmental impact on the Rio Grande Valley than other proposed projects due to its use of electrical power instead of natural gas to drive its liquefaction compressors,” said Omar Khayum, Annova Chief Executive.

“We are confident that through the executed agreement, STEC will provide all electric transmission services required for safe and reliable operation of the project,” added Khayum.

Annova added that Magic Valley Electric Cooperative, a member of STEC, will be the sole provider of electric energy to power the facility.

“This agreement is yet another example of Annova LNG’s momentum,” said Khayum.

“The project continues to make significant progress as we begin 2019,” he stated, noting that commercial operations are scheduled to begin in 2024.

Annova received its draft environmental impact statement in December 2018 prepared by the Federal Energy Regulatory Commission.

The project company added that it had modified its layout to create a 185-acre environmental conservation corridor and avoid impacting over 100 acres of wetlands.

Its environmental plans would also restore tidal exchange and estuarine habitats lost when the Brownsville Ship Channel and State Highway 48 were constructed.

The joint venture proposes the construction of six small-scale liquefaction Trains as well as an interconnected pipeline and marine export facilities.

Annova said it would support an average of around 700 on-site jobs over a four-year period and thereafter would need about 165 permanent full-time workers to run and manage the plant.

The company said it expected to receive its Final Environmental Impact Statement in the second quarter of 2019.

The joint venture’s equity owners in addition to Exelon are US engineering, processing and equipment company Black & Veatch of Kansas and construction firm Kiewit Corp., based in Omaha, Nebraska.

The company said it was in the process of securing one billion cubic feet per day of firm natural gas transportation from Agua Dulce Hub in south Texas to the project site.