June 7, 2019
Pending Applications for LNG Export Projects in the United States: Mississippi, Oregon, and Texas
Written by Chloe Marie – Research Specialist
In May 2017, we wrote three articles addressing the then-pending and approved applications for LNG export projects in the United States. Since that time, many legal developments have occurred and so we will once again provide a discussion of LNG export developments through a planned five-part series.
The first two articles in the series addressed approved applications for LNG export projects in the United States with the first article providing an overview on the development of six projects in Louisiana and the second one focusing on five projects in Texas and one project in Georgia that have been approved by both the Federal Energy Regulatory Commission (FERC) and the U.S Department of Energy (DOE).
The third article in our series addressed the status of pending LNG export project applications in the states of Alaska, Florida, and Louisiana. This article will address the status of similar applications in the states of Mississippi, Oregon, and Texas. The final article in our series will provide an overview of LNG export projects that have moved beyond the mere application stage and are currently in operation.
Mississippi:
The Gulf LNG Liquefaction Project (FERC docket CP15-521)
The Gulf LNG Liquefaction Project would expand the existing Gulf LNG Terminal located near Pascagoula in Jackson County, Mississippi, by adding liquefaction and export facilities with a capable capacity to export up to 11.5 million metric tonnes per annum (Mtpa).
In May 2012, Gulf LNG filed an application with DOE for long-term authorization to export up to 547.5 Bcf per year of LNG to Free Trade Agreement (FTA) countries, which was approved in June 2012. Gulf LNG filed an application in August 2012 to export LNG to Non-Free Trade Agreement, and this application remains under consideration by DOE.
On June 19, 2015, Gulf LNG filed a permit application before FERC under Section 3 of the Natural Gas Act to construct and operate the Gulf LNG Liquefaction Project. On April 17, 2019, FERC released a final Environmental Impact Statement (EIS) for the project concluding that “approval of the proposed Project, with the mitigation measures recommended in the EIS, would have some adverse environmental impacts; however, these impacts would be avoided or reduced to less-than-significant levels.”
On September 7, 2018, FERC published a Notice of Anticipated Schedule for the Gulf LNG Liquefaction Project in the Federal Register and expects to reach a decision regarding a final order on July 16, 2019.
Oregon:
The Jordan Cove LNG Project (FERC docket CP17-494)
The Jordan Cove LNG Project proposes a new LNG export terminal and associated facilities located across the North Spit of Coos Bay, in Coos County, Oregon, which would have the capacity to export up to 7.8 million tonnes per annum (Mtpa) of LNG per year. This LNG Project has generated strong opposition from a number of local organizations, and this opposition has led to additional legal challenges for the project’s proponents. According to Citizens Against LNG, one of the groups opposed to the Jordan Cove LNG Project, this project “would not only negatively impact coastal shorelands, it would be located in a tsunami inundation and earthquake subduction zone, directly across the Coos Estuary … from the cities of North Bend, Coos Bay and the Southwest Oregon Regional Airport.”
Jordan Cove Energy Project, L.P. (JCEP) filed two separate applications with DOE for authorizations to export LNG to FTA and NFTA countries in September 2011 and March 2012, respectively. DOE approved JCEP’s request to export approximately 438 Bcf per year of LNG to FTA countries in December 2011. DOE also allowed, in March 2014, JCEP to export up to the equivalent of 292 Bcf per year of LNG to NFTA countries on a conditional basis. In granting this approval, DOE declared that it “intends to monitor developments that could tend to undermine the public interest in grants of successive applications for exports of domestically produced LNG and … to attach terms and conditions to the authorization in this proceeding and to succeeding LNG export authorizations as are necessary for protection of the public interest.” On July 20, 2018, DOE approved a reduction in the approved export volume from 1.2 Bcf per day to 1.08 Bcf per day, at the request of JCEP. JCEP also applied for a reduction in the approved NFTA export volume, and that request is currently being reviewed by DOE.
On September 21, 2017, FERC received an application from JCEP for authorization under Section 3 of the Natural Gas to site, construct, and operate the Jordan Cove LNG Project. On March 29, 2019, FERC issued a draft Environmental Impact Statement for the Jordan Cove Project. FERC indicated that this project would create adverse environmental effects and impact the housing in Coos Bay as well as the visual character of the city. FERC also indicated that the project would affect 13 federally-listed threatened and endangered species including the marbled murrelet, northern spotted owl, and coho salmon. FERC, however, concluded that most of these impacts could be reduced to less than significant levels with the implementation of recommended mitigation measures.
Based on the revised and current schedule for the Jordan Cove LNG Project published by FERC in the Federal Register on March 6, 2019, a final version of the Environmental Impact Statement was expected on October 11, 2019, and a final decision on the project was anticipated on January 9, 2020.
On May 6, 2019, however, the Oregon Department of Environmental Quality (DEQ) denied JCEP’s request for a Section 401 Water Quality Certification (WQC) that was filed on October 24, 2017. The 401 Certification is a key permit necessary for the construction of the facility. In its denial letter, Oregon DEQ explained that it “does not have a reasonable assurance that the construction and operation of the Project will comply with applicable Oregon water quality standards” based on DEQ’s Evaluation and Findings Report. DEQ stated that this decision was made without prejudice, leaving it up to JCEP to decide whether it will request a contested case hearing or reapply for a Section 401 WQC submitting “additional information that is responsive to the bases for denial in this decision.”
Texas:
The Texas LNG Liquefaction Project (FERC CP16-116)
The Texas LNG Liquefaction Project proposes to construct and operate new LNG export facilities on the Brownsville Ship Channel in Cameron County, Texas, including a terminal facility foreseen to have a capacity to export 2 million metric tonnes per annum (Mtpa).
Texas LNG Brownsville, LLC, owner of the Project, filed an application before DOE for authorizations to export up to 4 million tonnes per annum of LNG to FTA and NFTA countries in April 2015. Texas LNG Brownsville, LLC, received authorization to export up to the equivalent of 204.4 Bcf per year of natural gas to FTA countries in September 2015. DOE is still reviewing the application concerning the export of LNG to NFTA countries.
On March 31, 2016, Texas LNG Brownsville, LLC, filed an application with FERC under Section 3 of the Natural Gas Act for authorization to construct and operate the project. On March 15, 2019, FERC issued a final Environmental Impact Statement for the Texas LNG Project providing a favorable outlook for the continuation of the project. FERC’s deadline to issue a final decision is set on June 13, 2019.
The Rio Grande LNG Project (FERC docket CP16-454)
On May 5, 2016, NextDecade requested authorization from FERC to develop the Rio Grande LNG Project in Cameron County, Texas, which would include the construction and operation of six liquefaction trains, each with a capacity to export up to 4.5 million tons per annum (Mtpa); four LNG storage tanks, and two LNG vessel berths, among other things. On April 26, 2019, FERC issued a final Environmental Impact Statement for the Rio Grande LNG Project providing a favorable outcome for the project.
According to a media report dated May 28, 2019, NextDecade recently entered into two Engineering, Procurement and Construction (EPC) agreements with Bechtel for the construction of the project. The media report states that the “EPC contracts are for the first phase of the Rio Grande LNG Project, which consists of three liquefaction trains, two 180,000 cubic meter storage tanks and two marine berths.”
The Annova LNG Brownsville Project (FERC docket CP16-480)
The proposed Annova LNG Brownsville Project would involve the construction and operation of a new LNG export terminal, including natural gas pretreatment and liquefaction facilities, two LNG storage tanks and marine dock, and LNG transfer facilities, among others, with a capacity to produce approximately 6.95 million metric tonnes per year of LNG for export. This project would be located in the Port of Brownsville, Texas.
In February 2014, Annova LNG obtained approval from DOE to export up to 342 Bcf per year of natural gas to FTA countries. Annova LNG has not filed any applications regarding LNG export to NFTA countries at this point in time.
On April 19, 2019, FERC released a final Environmental Impact Statement for the Annova LNG Brownsville Project and found that the project would create adverse consequences to the environment, but that they could be avoided or minimized if properly addressed. With regard to these impacts, FERC declared that “the Project, combined with other projects in the geographic scope, including the Rio Grande LNG and Texas LNG Projects, would result in significant cumulative impacts from: construction noise during nighttime pile-driving; sediment/turbidity and shoreline erosions within the Brownsville Ship Channel during operations from vessel transits; on the federally listed ocelot and jaguarundi from habitat loss and potential for increased vehicular strikes during construction; on the federally listed aplomado falcon from habitat loss; and on visual resources from the presence of aboveground structures.”
References:
The Gulf LNG Liquefaction Project (FERC docket CP15-521)
FERC Gulf LNG Liquefaction Project Final Environmental Impact Statement (April 2019)
The Jordan Cove LNG Project (FERC docket CP17-494)
Citizens Against LNG, “Jordan Cove LNG project would put American jobs and citizens at risk”
The Texas LNG Liquefaction Project (FERC CP16-116)
Website – Texas LNG Project Overview
FERC, Texas LNG Project Final Environmental Impact Statement (March 2019)
The Rio Grande LNG Project (FERC docket CP16-454)
Website – Rio Grande LNG Project
FERC Rio Grande LNG Project Final Environmental Impact Statement (April 2019)
LNG World News, “Bechtel scores $9.5 bln Rio Grande LNG EPC deal (May 28, 2019)
The Annova LNG Brownsville Project (FERC docket CP16-480)
FERC Annova LNG Brownsville Project Final Environmental Impact Statement (April 2019)
The Center for Agricultural and Shale Law is a partner of the National Agricultural Law Center (NALC) at the University of Arkansas System Division of Agriculture, which serves as the nation’s leading source of agricultural and food law research and information. This material is provided as part of that partnership and is based upon work supported by the National Agricultural Library, Agricultural Research Service, U.S. Department of Agriculture.
