I’m about to brag about how wonderful Texas is again in this week’s blog, be warned.
So once again my amazing home state is getting a leg up in the energy business. The Port of Brownsville, which is the only deep water port located in the U.S. / Mexico boarder, is slated to get a new Liquefied Natural Gas (LNG) exporting terminal. I love that companies within the Lone Star State see the potential in natural gas. They are willing to pour millions of dollars into the Texas economy with construction, jobs, and exportation dollars. So put your shades on and I will give you some more information about the bright future of the greatest state in the lower 48!
Before we talk about the new liquefied natural gas hub, I want to give you some important facts about this highly profitable resource.
What is liquefied natural gas or LNG?
- It is a clear, colorless, non-toxic gas made mostly of methane, that becomes a liquid when is is cooled to -260 degrees Fahrenheit.
- This cold temperature causes the gas to shrink in volume 600 times, making it easier to store and transport. gas that has been converted to liquid form for easier storage and transport.
Is LNG safe for storage and transport?
- Yes! LNG is not stored under pressure so it is not explosive.
- When LNG is spilt on the ground or water it vaporizes quickly and leaves behind no residue
- Spills are not harmful to aquatic life or damaging to waterways
- LNG can ignite as it vaporizes but only if there is a source of ignition, otherwise, it completely dissipates
- Property and Loss insurance rates for LNG container shipping is 25% less than crude oil shipping
- LNG ships are double-hulled and have more than 6 feet of void space or water ballast between the outer and inner hulls and the cargo tanks
- “The LNG industry has been shipping bulk quantities by container ship since the 1960’s. There are over 100 LNG container ships in operation today, the industry has conducted over 33,000 voyages since 1964 covering more than 60 million miles without there even being a significant spill, loss or cargo, or environmental incident.” Breakingenergy.com
So now that we know a bit more about LNG I can tell you about what is going down in Brownsville. Right now, nothing. Why? Well, approval has to come first. A project of this magnitude will come with lots of scrutiny, justifiably so. This project will require 26 different federal, state and local permits and licenses. Here is a list of everyone swimming in the government pool Federal Energy Regulatory Comission (FERC), U.S Department of Energy (DOE), U.S. Army Corps of Engineers (USACE), and the U.S. Fish and Wildlife Services (FWS)
In June of 2014 Texas LNG LLC had to get authorization from the U.S Department of Energy (DOE) to have the right to export liquid natural gas. They can export to international countries but only if the country enters into a Free Trade Agreement (FTA) with the United States. Hurdle one, check.
I discovered that it is not just one company that will be constructing this 625-acre parcel of land inside the Port of Brownsville. From what I read up to five different companies will be involved. Two companies, Houston-based Annova LNG LLC and Texas LNG both filed with the Federal Energy Regulatory Commission in early March of 2015 to begin the process of reviewing the project. A third Houston-based company (Can you say Energy Capitol of the World people?) Annova LNG LLC decided to file with the FERC in March too. I couldn’t figure out who the fourth and fifth companies are. I’m sure someone out there knows more about this than I do.
The rendering above is from the Texas LNG website http://www.txlng.com/about/texas-lng-summary.html
The future site is is planned to produce up to 2 million tonnes per annum (MTA) of liquid natural gas from about 275 MMcf/d of gas sourced from the United States natural gas pipeline system. And that is just phase 1. At a later date the location will become fill up the 625 acres by beginning Phase 2. The second phase will increase the LNG plants capacity by 2 MTA
It is nice to see that Texas-based companies are not letting the current oil and gas market have a negative sway on future business decisions. These companies are looking far into the future of energy and know that natural gas is the way to go. I know that I am excited to see what the future holds for the land I love. Click the link below to learn about the different units Croft Production Systems has to help your company process natural gas.
References:
http://www.txlng.com/theproject/port-of-brownsville.html
http://downstreamtoday.com/news/article.aspx?a_id=35318&AspxAutoDetectCookieSupport=1
http://www.lngfacts.org/about-lng/safetysecurity/
http://www.abc.net.au/news/2013-10-14/macfarlane-lng-exports/5014018
