{"id":20430,"date":"2023-08-06T14:42:44","date_gmt":"2023-08-06T21:42:44","guid":{"rendered":"https:\/\/essential.construction\/news\/new-lng-export-facilities-will-add-billions-to-texas-economy\/"},"modified":"2023-08-06T14:42:46","modified_gmt":"2023-08-06T21:42:46","slug":"new-lng-export-facilities-will-add-billions-to-texas-economy","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/new-lng-export-facilities-will-add-billions-to-texas-economy\/","title":{"rendered":"New LNG export facilities will add billions to Texas economy"},"content":{"rendered":"

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The economy of Texas has evolved dramatically since the Second World War. While today the state has become a destination for new technology investment, its economic foundation has traditionally been in cattle, cotton and carbon fuels.<\/p>\n

Fossil fuel development in Texas continues to grow and dominates the entire United States, generating\u00a0upwards of $415 billion\u00a0<\/a>annually toward the state\u2019s GDP. Texas accounts for 43 per cent of U.S. crude oil production, 26 per cent of natural gas production and 31 per cent of the nation\u2019s refining capacity. The oil and gas industry employs about 440,000 Texans directly and another one million indirectly.<\/p>\n

Natural gas in particular has experienced exponential growth from its beginning in the late 1990s. Exports of natural gas reached 3.3 billion cubic feet in 2021, triple the volume of 2015.<\/p>\n

The Texas government is happy to see the state\u2019s energy sector grow. After all, the industry as a whole paid $24.7 billion in state and local taxes and state royalties in fiscal year 2022, well beyond the record $16 billion set in 2019.<\/p>\n

Liquefied natural gas (LNG) for export is currently benefitting from new investments. LNG is\u00a0natural gas cooled to a liquid state at about -260 C for shipping and storage. Of the 24 new LNG export facilities proposed or under construction in the United States, eight are in Texas, earning the state the reputation as \u201cThe Land of LNG,\u201d according to the governor\u2019s April newsletter<\/a>.<\/p>\n

One of the biggest LNG commitments now moving forward is the Rio Grande LNG<\/a> complex near Brownsville, Texas, on the Gulf Coast near the border with Mexico. It\u2019s a project with a total value estimated at $18 billion. \u00a0<\/p>\n

Last month, engineering,\u00a0construction<\/em> and project management\u00a0giant Bechtel received a $12 billion go-ahead for Phase 1 from the facility\u2019s Houston-based owner,\u00a0NextDecade.<\/p>\n

It\u2019s a complex project financing that includes a number of foreign investment partners, including a 16.7 per cent equity position taken by the French petroleum firm TotalEnergies. Plans also call for the conservation of more than 4,000 acres of wetland and wildlife habitat, reduced emissions through carbon capture and storage and the use of net-zero electricity.<\/p>\n

Another LNG project is also expected to move ahead in Brownsville.<\/p>\n

U.S. energy company Glenfarne Group LLC, through its wholly-owned subsidiary Glenfarne Energy Transition, LLC, hopes its $4 billion Texas LNG<\/a> facility will be in production by 2027, employing over 1,200 construction workers and more than 100 fulltime employees thereafter. Like the Rio Grande LNG project, renewable energy will be used to power the facility.<\/p>\n

As reported by Reuters<\/a>, the final investment decision will be made sometime this year, following an Order on Remand issued by the U.S. Federal Energy Regulatory Commission regarding air monitoring and emergency response communications that will be incorporated into the Texas LNG plan.<\/p>\n

\u201cEnvironmental justice and the carbon footprint of our project are among the most important issues we regularly consider as we progress Texas LNG to a final investment decision this year,\u201d said Brendan Duval, CEO and founder of Glenfarne Energy Transition in a media release<\/a>.<\/p>\n

\u201cWe are eager to begin construction on our facility to be able to safely export clean, environmentally sensible LNG that is \u2019Green by Design\u2019 around the globe, providing long-term energy security when it is critically needed.\u201d<\/p>\n

On the Gulf Coast east of Houston, U.S.-based Sempra Infrastructure announced in March it would move on the first phase of development, construction and operation of the Port Arthur LNG<\/a> project. It will be a joint venture between its subsidiary, Sempra Infrastructure Partners LP, and ConocoPhillips. The total capital expenditure for Phase 1 of the project is estimated at\u00a0$13 billion.<\/p>\n

Commenting on the economic impact of the project, Brendan Bechtel, Chairman and CEO of Bechtel, the contractor selected for construction at Port Arthur said, \u201cThe 5,000 construction jobs this project creates will provide outstanding opportunities for craft professionals \u2014 growing a skilled workforce that will benefit the region for years to come.\u201d<\/p>\n

That\u2019s music to Gov. Greg Abbott\u2019s ears.<\/p>\n

\u201cSempra\u2019s selection of\u00a0Port Arthur\u00a0as the location for a new natural gas liquefication and export terminal is a strategic decision that will cement\u00a0Texas\u2019\u00a0position as the energy capital of the world,\u201d he said in the Sempra\u2019s media release<\/a>. \u201cExpanding LNG is imperative to American energy security, and the\u00a0State of Texas\u00a0looks forward to working alongside Sempra to advance this mission and bring more jobs and greater opportunities to hardworking Texans.\u201d<\/p>\n

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