LNG

Feb 22 (LNGJ) - Gulfstream LNG, a proposed mid-scale LNG export project located on the shore of the Mississippi River in Plaquemines Parish in Louisiana plans to request that the Federal Energy Regulatory Commission (FERC) begins a pre-filing process after completion of the company’s current initial equity funding round. The Gulfstream project plans to start exporting volumes by 2029 from its mid-scale facility with 4 million tonnes per annum of output.

   The Gulfstream Chief Executive is Vivek Chandra who previously founded Texas LNG, an export project still under development . Under Chandra’s leadership as CEO, Texas LNG completed multiple funding and technical rounds and received its FERC permit. That project then then found engineering partners and was reported to be progressing towards its final investment decision.

Glenfarne Group, the owner of the Magnolia LNG export project in Louisiana, has made a request to the Federal Energy Regulatory Commission for five more years to complete the plant and associated facilities.

The regulators had previously approved construction of Magnolia LNG and related pipeline expansions in April 2016 under its previous owner, the Australian-listed company LNG Ltd that ceased trading amid financial difficulties.

That approval had required LNG Ltd to complete the project within five years, by April 2021.

The Magnolia plant is proposed for a 115-acre site near the Calcasieu Ship Channel. It is designed to produce 8.8 million tonnes per annum of LNG from four Trains.

“Unforeseeable developments in the global LNG market have affected Magnolia LNG’s ability to enter into long-term LNG offtake contracts,” privately-held Glenfarne told the FERC in requesting the extension.

“Magnolia and pipeline provider Kinder Morgan request a five-year extension of their authorizations, up to and including April 15, 2026, to place the Magnolia LNG Project facilities and Lake Charles Expansion Project facilities, respectively, into service,” Glenfarne added in its Magnolia project filing.

A final investment decision had not yet been taken on Magnolia as it sought to finalize a purchase agreement with a Vietnamese power and import venture in the Mekong Delta. That accord has now lapsed.

Glenfarne also acquired LNG Ltd.’s patented optimized single mixed refrigerant (OSMR) liquefaction technology from the Australian administrators.

Its purchase of Magnolia boosts the amount of US LNG export capacity Glenfarne has under development to 12 MTPA as it also owns Texas LNG Brownsville.

The Texas project received authorization from the FERC in November 2019 for the facility to be sited along the Brownsville Ship Channel.

Texas LNG seeks to supply Permian feed-gas as LNG to global customers along with two other rival projects being developed alongside.

These are the Rio Grande LNG project with five liquefaction Trains and over 26 MTPA of output and the smaller scale Annova LNG venture.

Rio Grande is own by NextDecade Corp and one of the main shareholders in Annova is Exelon Corp, the utility headquartered in Chicago.

All three Brownsville projects have pushed back their investment decisions and original construction and engineering timetables.

Glenfarne’s Texas LNG leadership still includes the project's co-founders, Chief Executive Vivek Chandra and Chief Operating Officer Langtry Meyer.

The sale to Glenfarne by the Australian administrators of LNG Ltd assets did not include the proposed Bear Head LNG project in the Canadian province of Nova Scotia with 12 MTPA of capacity.

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.

The Rio Grande LNG export plant proposed for a 984-acre site in the Port of Brownsville in Texas has been issued with a notice to proceed by regulators with the implementation plan and site preparation as well as equipment mobilization.

US regulators have denied requests for the rehearing of its orders authorizing construction and operation of two of three proposed liquefied natural gas export plants on the shore of the Brownsville Ship Channel in Cameron County in Texas. 

The US export project, Texas LNG Brownsville, was authorized by the  Department of Energy to export US-sourced natural gas to any country with which the US has not entered into a Free Trade Agreement.

The US Federal Energy Regulatory Commission authorized three LNG export projects around the Texas Port of Brownsville comprising multiple liquefaction Trains and around 37 million tonnes per annum of output, along with investments amounting to almost $39 million to create thousands of jobs in the Gulf Coast port region.

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 Texas LNG export project proposed for Cameron County in the port of Brownsville made more progress as the Federal Energy Regulatory Commission delivered a final environmental impact statement.

Texas LNG, the project in Brownsville founded by Vivek Chandra and Langtry Meyer, has received its draft environmental impact statement (DEIS) from regulators.