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FERC issues positive final environmental review of Texas LNG project

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Essential Energy Insights - January 2021


FERC issues positive final environmental review of Texas LNG project

A Texas LNG LLC subsidiary received the final environmental review it needed from the Federal Energy Regulatory Commission for the company's proposed natural gas liquefaction and export plant, bringing the project closer to a final decision from the commission.

FERC staff found that the Texas LNG Brownsville LLC project would have some negative effects on the environment but that the impacts could be reduced to less-than-significant levels with mitigation measures and plans, "with the exception of visual resources."

The staff recommended mitigation measures as part of the March 15 environmental statement to help ensure the environmental impacts would not become significant. The staff observed that the project would be placed in an area zoned for commercial and industrial use on the Brownsville Ship Channel in Cameron County, Texas.

The project cleared a draft environmental impact statement in October 2018.

The Texas LNG project could eventually be able to produce up to 4 million tonnes per annum of LNG. The first phase would put in place a single 2-mtpa train. A second train of the same size could be added later. In addition to the trains, the project would include two storage tanks, an LNG carrier berth and support facilities. A 30-inch-diameter pipeline, built and operated by a third party, would deliver gas to the terminal.

The export project is one of three LNG terminals proposed for the area around Brownsville, Texas. The others are NextDecade Corp.'s Rio Grande LNG terminal and Exelon Corp.'s Annova LNG facility. The three projects were among 12 LNG projects to receive new or updated environmental review schedules in August 2018 as part of FERC's effort to work through a backlog of applications for export facilities.

Texas LNG applied for a Natural Gas Act certificate for its project in March 2016. (FERC docket CP16-116)