What’s happening with LNG in Texas?

Last month, President Biden announced a “temporary pause on pending decisions on exports of Liquefied Natural Gas (LNG) to non-FTA countries until the Department of Energy can update the underlying analyses for authorizations.”

Texas is already a major exporter of LNG, which is primarily made up of methane gas. Methane is 28 times more potent than carbon dioxide at trapping heat in the atmosphere, according to the U.S. Environmental Protection Agency (EPA). This methane gas easily leaks into the atmosphere through LNG production and supply chain, resulting in mass amounts of air pollution. Studies indicate that when factoring in methane leaks and emissions to ship the gas around the world, LNGs may be only slightly better or even slightly worse than coal in terms of its climate impact. 

So what does the pause mean for the seven LNG plants in Texas that have been proposed, are under construction or are already operating? 

The decision impacts two existing LNG facilities seeking expansions – Port Arthur LNG (Trains 3 and 4) and Corpus Christi Liquefaction (Trains 8 and 9) – but does not impact Corpus Christi Liquefaction and Freeport LNG’s existing operations, the three projects already under construction (Corpus Christi Trains 4-11, Port Arthur Trains 1 & 2, and Rio Grande LNG), or the two projects that have already obtained their DOE permits but are awaiting financing (Freeport LNG Train 4 and Texas LNG).

Port Arthur LNG (SEEKING EXPANSION)

Approved and Under Construction: (Sempra- Port Arthur LNG Trains 1 & 2)

Paused: (Sempra – Port Arthur LNG Trains 3 & 4)

Sempra Infrastructure announced in March 2023 they had reached a final investment decision for phase 1 of the project (Trains 1 and 2) in southwest Texas. When fully constructed, the facility would have the capacity to emit 82 MMT (million metric tons) of CO2e per year. The facility was already under construction, when the U.S. Fifth Circuit Court of Appeals vacated a key environmental permit last year, ruling that the Texas Commission on Environmental Quality (TCEQ) “acted arbitrarily and capriciously” by declining to impose emissions limits on Port Arthur LNG “that it had recently imposed on another such facility.” Sempra has stated that construction on phase 1 will continue while it seeks a new permit.

In September 2023, the U.S. Federal Energy Regulatory Commission (FERC) voted to authorize Sempra Energy to expand the project, allowing for the construction of Port Arthur Trains 3 and 4 to move forward, roughly doubling the eventual plant’s capacity to export liquified natural gas (LNG) from 13.46 million tons to 26.92 million tons per year. However, Sempra had not yet obtained approval from the Department of Energy for exports to non-Free Trade Agreement (FTA) countries, putting trains 3 and 4 on hold for now. 

Corpus Christi LNG (SEEKING EXPANSION)

Operating: (Cheniere – Corpus Christi LNG Trains 1- 3)

Approved and Under Construction: (Cheniere Corpus Christi Stage III) 

Proposed: (Cheniere Corpus Christi Midscale Trains 8-9) 

Corpus Christi Liquefaction, a subsidiary of Cheniere Energy, operates the Corpus Christi LNG terminal. Located in Gregory, Texas, this facility holds three liquefaction trains capable of processing 15 million metric tons of LNG annually. The facility currently emits 91 MMT of CO2e per year. 

Since the facility started operating in 2018, it has exceeded its permitted limits for emissions of pollutants hundreds of times. Rather than penalizing Cheniere, the TCEQ has increased the plant’s pollution limits. The facility can now emit double the limit set in the original permit. 

Residents have noticed the air quality drastically deteriorating since the facility began running and have petitioned for the state to regulate and crack down on the facility’s emissions rather than increasing the permitted amount. Cheniere stated they underestimated the emissions from the plant and that the plant would be unable to run consistently under the previous pollution limits. 

The Corpus Christi LNG Stage III Expansion Project began construction just last year and is expected to be completed in 2027. This project consists of seven “midscale” liquefaction trains, allowing the facility to process an additional 10 million tons of LNG annually (60 metric tons of  CO2e per year). 

In 2022, Cheniere applied to FERC for an extension of the construction deadline to 2027 rather than the original deadline of late 2024. They claimed their construction timeline experienced delays due to COVID-19. Environmental groups protested the filing for the extension and urged FERC to reconsider if the expansion is a good idea as many fear the climate change impacts. FERC went forward with granting the extension. 

Cheniere is still seeking to expand the facility further by adding two more trains. Each train could produce 1.64 million metric tons of LNG per year. It is unknown what additional emissions this expansion would produce as it is in the early stages of the announcement. 

Freeport LNG (OPERATING AND SEEKING EXPANSION) 

Existing: (Freeport LNG Dev/Freeport LNG Expansion/FLNG Liquefaction Trains 1- 3)

Approved but Not Under Construction: (Freeport LNG Dev Train 4)

The Freeport LNG Liquefaction Facility is located on Quintana Island, near Freeport, on the Texas Gulf Coast. This facility can process up to 15 million tons of LNG annually and is one of the world’s largest exporters of LNG. It is also in the process of an expansion project, which would increase the terminal’s capacity by an additional 5 million tons per year. 

In June 2022, a 450-foot-high explosion terrified the local community and caused the facility to shut down for over six months. The explosion’s aftermath led to excess carbon monoxide, nitrous oxides, and other particulate matter emissions. The Pipeline and Hazardous Materials Safety Administration (PHMSA) blamed the incident on inadequate operating and testing procedures made by human error. 

Residents expressed their disappointment at the explosion’s aftermath and questioned the current regulations in place over the facility in a public meeting at the beginning of February 2023. There have been no changes to the regulations that govern gas export projects in over 40 years. In December 2023, Freeport LNG settled with the EPA over safety failures for the June 2022 Texas blast. The settlement included a civil penalty of $163,054 for breaking chemical accident prevention rules under the Clean Air Act.

In February 2023, FERC granted permission for the plant to restart partially. U.S. regulators are currently evaluating the facility’s request to resume entire commercial operations despite concern from local residents. The Sierra Club challenged the extension, arguing that Freeport LNG failed to abide by its own timeline. Ultimately, the FERC approved Freeport LNG’s request to return its plant to full operation in the fall of 2023. 

Golden Pass (UNDER CONSTRUCTION)

Approved and Under Construction: (ExxonMobil – Golden Pass) 

Golden Pass LNG is currently being constructed in Jefferson County, Texas, with an expected start date in 2024. This export terminal will be capable of producing 18 million tons of liquefied natural gas every year. This facility has the potential greenhouse gas emissions of 109 MMT of carbon dioxide equivalents per year.  

Rio Grande LNG (APPROVED)

Approved and Under Site Preparation: (Rio Grande LNG– NextDecade)

Earlier this year, NextDecade, the Rio Grande LNG developer, announced that it had made a “positive final investment decision (FID)” to begin construction of Phase I of the terminal after construction had been delayed due to the COVID-19 pandemic and a lawsuit victory that resulted in an additional review by FERC. The FERC’s recent vote will allow the terminal to proceed with Phase II of the project, resulting in the construction of five liquefaction trains. This will push the facility’s capacity to produce 16 million tons of LNG per year to 27 million tons of LNG by the time it is completed in 2029.  

When fully constructed, the terminal is estimated to produce 163 MMT of CO2 equivalent emissions a year, according to data from the Sierra Club. NextDecade, the developer, claims it will be the greenest LNG project in the world as the facility will include carbon capture and storage (CCS) technology. However, this strategy will only reduce greenhouse gas emissions by an estimated 5 MMT of CO2 annually. 

The CCS technology presented by Rio Grande LNG has convinced investors, politicians, and the public that the facility’s plans are climate-safe. However, according to a study by the Department of Energy, only 6-7% of the overall emissions associated with such projects are generated while cooling the gas. Currently, all commercial CCS projects worldwide only capture about 0.1% of global emissions, proving how ineffective CCS projects are when attempting to mitigate the total CO2 emissions from oil and gas companies.

Texas LNG (APPROVED)

Approved but Not Under Construction: (Texas LNG Brownsville)

The Texas LNG terminal is estimated to have the capacity to produce 24 MMT of CO2 equivalent emissions a year. It has the potential to increase even further upon its completion in the operation year 2027. 

The terminal faced delays in certificate approval because of community opposition and difficulty securing contracts for their gas. 

Local communities have been fighting the new LNG projects developing near Brownsville. Activists from the Carrizo Comecrudo Tribe of Texas have been strong players in deterring European investment towards the new LNG. Dr. Christopher Basaldú, a member of the tribe, stated, “no company ever talked to our tribe about the LNG terminals they plan to build on our territories. The pipelines, the fracking sites, the export terminals – they’re destroying the water and wildlife, all for European consumption.” 

In 2020, Engie, a French utility company, publicly pulled out of buying into the Rio Grande LNG due to concerns about the terminal’s methane emissions and other environmental risks. On March 28th of this year, French bank Société Générale also confirmed that it has withdrawn financial support for the proposed project as the LNG project is not aligned with the bank’s human rights and environmental, social, and governance goals.

In 2019, the FERC approved the final Environmental Impact Statement for the Texas LNG and the Rio Grande LNG. Environmental groups argued that the new LNG facilities violated the National Environmental Policy Act and the Natural Gas Act and filed a lawsuit. In 2021, the U.S. Court of Appeals decided that the FERC had to reconsider the climate and environmental justice impacts of both the Texas LNG and the Rio Grande LNG facilities. The original vote was planned for July, but it has been postponed, and there is currently no specified date for when it will be rescheduled.

In October, Environment Texas, along with 48 other organizations, sent a letter to the FERC opposing the Rio Grande LNG and Texas LNG projects due to the harm they would pose to wildlife and the people of the Rio Grande Valley. 

Conclusion

The vast expansion of LNG projects in Texas is very concerning for Texas’ local environment and the global climate. If all proposed and under-construction projects are completed, Texas LNG terminals could contribute an additional staggering 766 million metric tons of lifecycle CO2 every year. That’s equal to the emissions of 170 million cars. 

The U.S. earlier this month joined nations from around the world in approving new climate goals which promise to “transition away” from fossil fuels. The expansion of the LNG exports, which will lock the planet into decades more reliance on methane gas, is incompatible with this goal.