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In August 2024, the US Court of Appeals for the D.C. Circuit issued an order vacating FERC’s remand authorization of the Texas LNG project, saying that FERC should have issued a supplemental EIS during its remand process.
FERC has now prepared the draft supplemental EIS to assess the issue raised by the court.
“Commission staff conclude that project-related impacts on communities with environmental justice concerns would be disproportionate and adverse because they would be predominately borne by the communities with environmental justice concerns and, specifically, communities in the areas near the terminal may experience significant cumulative visual impacts,” the regulator said.
“Specific to air quality impacts, we clarify that the project’s air quality impacts on communities with environmental justice concerns would also be disproportionate and adverse; however, these impacts would be less than significant,” it said.
“For all other resources, FERC staff continues to conclude that approval of the project would result in less than significant impacts, with implementation of the environmental conditions set forth in the Commission’s prior authorizations for the project, and the additional mitigation measures recommended in the draft supplemental EIS,” FERC said.
FERC said the comment period closes on May 19, 2025.
The regulator also released a draft supplemental environmental impact statement for NextDecade’s Rio Grande LNG facility in Texas.
FERC said that it continues to conclude that approval of the Rio Grande LNG project would result in “less than significant impact.”
Texas LNG
US energy firm Glenfarne just appointed Oliver Wood as project director of the Texas LNG export project.
Wood joined the Texas LNG team in 2023 with 20 years of prior experience in the oil and gas industry, specializing in LNG, refinery, and petrochemical projects.
In November 2024, Glenfarne’s Texas LNG selected Kiewit to lead the engineering, procurement, and construction (EPC) of its LNG export terminal in the port of Brownsville.
Texas LNG said at the time it would work with Kiewit to “promptly” complete the pre-FID engineering required for the project to proceed to an FID.
Prior to that, Texas LNG signed a new heads of agreement in September 2024 to supply LNG to a “highly experienced, investment-grade, global LNG player.”
With this announcement, Texas LNG said it had secured customer offtake commitments in a volume sufficient for achieving FID.
In July the same year, US natural gas producer EQT entered into a binding agreement for liquefaction services from Texas LNG’s planned facility in Brownsville to produce 2 mtpa of LNG under a 20-year tolling agreement.
This binding deal solidifies the two heads of agreement which were signed earlier.
In addition, Texas LNG signed a long-term supply deal in March with a unit of Geneva-based trader Gunvor.
This deal is for 0.5 mtpa of LNG on a FOB basis for 20 years.
Texas LNG also entered into a deal with a “top-tier credit-rated market participant” for a long-term LNG free-on-board sale and purchase agreement for 0.5 mtpa of LNG.
