NextDecade Corporation introduced that the Company has accomplished an analysis of the Galveston Bay LNG website and decided that the positioning in Texas City will not be appropriate for improvement of an LNG facility and associated infrastructure and utilities.
The U.S. Army Corps of Engineers (USACE), Galveston District, has suggested portion of the Galveston Bay LNG website is below Federal Navigation Servitude and serves as an lively Dredged Material Placement Area (DMPA) for the Texas City Ship Channel Federal Project. The Galveston Bay LNG challenge can’t be constructed with out USACE requesting that Congress – by way of the Water Resources Development Act or different laws – authorize the discharge of its constitutional proper of Navigation Servitude over this DMPA.
On account of the potential for extended uncertainty across the prospect of launch of Federal Navigation Servitude by USACE, NextDecade has elected to forfeit the Galveston Bay LNG website and can now not make lease funds to the positioning’s landholders, the Texas General Land Office and the City of Texas City. Additionally, NextDecade has knowledgeable the Federal Energy Regulatory Commission (FERC) of its intent to withdraw Galveston Bay LNG from FERC pre-filing proceedings and stop all associated actions. The Company has additionally requested that the U.S. Department of Energy terminate its June 2018 authorization for export of LNG from Galveston Bay LNG.
Galveston Bay is positioned within the western Gulf of Mexico alongside the higher coast of Texas. It is the seventh-largest estuary within the United States, and the biggest of seven main estuaries alongside the Texas Gulf Coast. The bay is encompassed by Greater Houston, the fifth-largest metropolitan space within the United States. The Port of Houston, which has services unfold throughout the northwestern part of the bay, is the second-busiest port within the nation by general tonnage.
“While it’s unlucky that the Galveston Bay LNG website will not be viable for large-scale infrastructure improvement, this willpower solely additional enhances the worth of – and the necessity for – NextDecade’s world-class Rio Grande LNG challenge within the Port of Brownsville,” stated Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “Since 2015, NextDecade’s improvement actions have been acutely targeted on delivering Rio Grande LNG and creating the biggest LNG export answer linking Permian Basin and Eagle Ford Shale pure fuel to the quickly tightening international LNG market.”
The circumstances of Galveston Bay LNG haven’t any influence on NextDecade’s Rio Grande LNG challenge within the Port of Brownsville, the place late-stage improvement actions are ongoing. NextDecade continues to work on remaining industrial agreements wanted to attain a ultimate funding choice on the Rio Grande LNG challenge in 2021.
NextDecade Corporation is a LNG firm targeted on delivering the 27 mtpa Rio Grande LNG export facility in South Texas. Rio Grande LNG would be the largest U.S. LNG export answer linking Permian Basin and Eagle Ford Shale pure fuel to the worldwide LNG market.
(Source: NextDecade – Image: NASA)
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