Texas LNG kicks off FERC review for liquefied natural gas project in Texas

Texas LNG Brownsville LLC, a subsidiary of Texas LNG LLC, filed a March 9 request at the Federal Energy Regulatory Commission to initiate the commission’s National Environmental Policy Act pre-filing review for its proposed Texas LNG Brownsville LNG Project, to be located in Brownsville, Texas.

Texas LNG proposes to build, own, and operate a 4 million tonne per annum (MTA) nameplate capacity liquefied natural gas (LNG) facility on a 625-acre site in the Port of Brownsville, Texas. This facility will receive natural gas via an intrastate natural gas pipeline to be constructed from the Agua Dulce natural gas hub approximately 150 miles north of Brownsville to the Brownsville market to provide natural gas service to proposed LNG export facilities in the Port of Brownsville, industrial projects, power generation facilities, gas utility companies and export markets in Mexico. The project will liquefy the natural gas and store and deliver the LNG as needed to LNG carriers for export.

In December 2013, Texas LNG LLC filed an application with the Department of Energy/Office of Fossil Energy seeking authorization to export up to two million (2,000,000) metric tonnes of LNG per annum to Free Trade Agreement (FTA) and non-FTA nations over 25 years. In June 2014, Texas LNG LLC received approval for the FTA portion of its request. Texas LNG’s application in that docket for DOE/FE authorization to export those same volumes of LNG to non-FTA nations is pending. Texas LNG will file with DOE/FE to transfer the existing FTA authorization and to modify the pending non-FTA application at the appropriate time.

The project will include two 2 MTA LNG trains to be installed in two phases. Phase 1 will be constructed upon receipt of all required authorizations and Phase 2 will be constructed based on market demand. The Phase 1 LNG will be stored in one single containment LNG storage tank of 210,000 cubic meters (m3 ) and Phase 2 will include a second single containment LNG storage tank. The new natural gas lateral pipeline will have the capacity to transport the gas necessary to produce 4 MTA of LNG. A single LNG tanker loading berth with a dredged slip connected to the Brownsville shipping channel will be constructed to accommodate LNG vessels.

Texas LNG will not file its application pursuant to Natural Gas Act Section 3 for the project sooner than 180 days after the commencement of this pre-filing process. The company wants the facility in initial operation in 2020.

The Agua Dulce natural gas hub is a relatively liquid point with multiple inter- and intrastate pipelines transiting through the area. Interconnecting pipelines in the Aqua Dulce area include Texas Eastern Pipeline, Tennessee Pipeline, Energy Transfer, Enterprise, South Cross, Natural Gas Pipeline Co., Transcontinental Gas Pipeline, Conoco, and Houston Pipeline. Texas LNG said it is in negotiations with several pipeline companies that are developing pipeline projects to supply the Brownsville and Mexico markets. The objective of the negotiations is a long-term firm pipeline transportation agreement for 600 MMscf/d, the full quantity of natural gas required to supply the proposed 4 MTA liquefaction facility.

Electric motors will be used to drive the propane and mixed refrigerant compressors. The LNG facility’s electric power requirements will be purchased from the grid. Texas LNG said it has commenced discussions with American Electric Power regarding the required infrastructure to deliver the LNG facility’s requirements for power.

The Texas LNG initial development team is comprised of the following elements:

  • Texas LNG Brownsville LLC;
  • Texas LNG LLC;
  • Samsung Engineering Co. Ltd. – Project Concept Design, pre-Front End Engineering Design (pre-FEED), and FEED services; owns equity in the project;
  • Braemar Technical Services (Engineering) Inc. – Engineering Consultant;
  • K&L Gates – Legal and Regulatory Counsel;
  • Greenberg Traurig – Commercial Legal Counsel;
  • Royston Razor – Brownsville Legal Counsel and Representative;
  • Natural Resource Group LLC – FERC Environmental Support, Permitting, and Public Engagement; and
  • Rodino Inc. – WSA Consultant.

Texas LNG sent out a request for proposals to eight potential third-party contractors on Feb. 18, and received five proposals in response on March 5. Contemporaneously with this pre-filing request and under separate cover, Texas LNG is providing to the commission staff the bid responses from the three leading environmental contractors.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.