The Texas Commission on Environmental Quality (TCEQ) Wednesday ruled that it would authorize issuance of an air permit to Texas LNG Brownsville LLC for the construction and operation of an LNG export facility at the Port of Brownsville, Texas LNG reported.
The TCEQ ruling clears the way for a 2021 final investment decision (FID) and construction of an LNG facility consistent with all air emission regulations, Texas LNG Founder and CEO Vivek Chandra commented in a written statement emailed to Rigzone.
“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,” stated Chandra.
According to Texas LNG, the LNG export facility would be built on the Brownsville port’s deepwater ship channel near the U.S.-Mexico border and the Gulf of Mexico. The company’s website states the complex has a planned capacity to produce up to 2 million tonnes per annum (mtpa) of LNG from approximately 300 million cubic feet per day of feed gas. A second development phase would add 2 mtpa of liquefaction capacity. The firm contends the project’s strengths include access to low-cost gas from the Permian Basin, the use of third-party pipeline infrastructure, modular construction design and the application of a “transparent competitive pricing structure.”
Texas LNG’s website also states that FID hinges on factors such as completing required commercial agreements, securing all necessary permits and approvals, obtaining financing and incentives and satisfying other factors tied to the investment’s commercial viability. Construction would start after FID and initial LNG exports – under Phase 1 – would begin in 2025 and Phase 2 exports would likely begin “soon thereafter,” according to the firm.
“We are pleased the TCEQ decision,” remarked Langtry Meyer, Texas LNG founder and chief operating officer. “Texas LNG is committed to operating in an environmentally responsible manner, including 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.”