The Federal Energy Regulatory Commission last week approved a presidential permit for a 1,000-foot transboundary connection to link a proposed 500-mile natural gas pipeline in Texas’ Permian Basin and a proposed 500-mile miles in Mexico leading to an estimated $15 billion. LNG export terminal under development in this country.
Tulsa-based energy firm Oneok Inc. is developing the 155 miles, 48 inches. day. Saguaro Connector pipeline that would send 2.8 billion cubic feet of gas per day from Pecos County, Texas, to the border. In Mexico, it would connect to the Sierra Madre pipeline to transport gas to Saguaro Engeria’s 15-metric-ton-per-year liquefaction project off the coast of northern Sonora state for shipment to Asia and Latin America. america
The project is anchored by developer Mexico Pacific, which has a strategic partnership with Bechtel, and says its goal is to position Mexico as the world’s fourth-largest LNG exporter. Mexico Pacific awarded the EPC contract last year for the pipeline and compression stations to a joint venture between Mexican contractor GDI Sicim Pipelines and Italy-based Bonatti.
Pacific Mexico arrived at long-term agreement last year to supply LNG ConocoPhillips, however, has not confirmed when a final investment decision on the export terminal will be announced.
At its Feb. 15 open meeting, FERC also approved a 1,000-ft., 48-in. cross-border gas pipeline connector on the Rio Grande. Commissioner Allison Clements supported that project, but disagreed with the agency’s decision that it was “unable” to assess the impact of its greenhouse gas emissions.
FERC and DOE ‘don’t coordinate’
The FERC approvals come weeks after the US Department of Energy announced it would pause LNG export licenses to non-free-trade countries.
Newly appointed permanent chairman of the commission, Democrat Willie Phillip, said at a news conference that the two agencies “do not coordinate” on decisions about energy infrastructure, which falls under FERC’s purview, or on “export and actual importation of LNG,” which is the jurisdiction of the DOE. .
But Republican-sponsored legislation that would eliminate DOE’s export approval authority and give FERC sole jurisdiction over eligible LNG facilities passed the House of Representatives on February 15 by one vote 224 to 200. His supporters included nine Democrats, but observers question whether those in the US Senate will support the bill or even consider it. The administration said in a statement that it opposes the bill, but did not confirm an expected presidential veto.
Sierra Club senior attorney Doug Hayes said FERC’s approval of the Saguaro Connector pipeline based on a limited environmental assessment “is out of step with the reality of the climate crisis and the communities affected by these projects “.
However, the project has also received approval from the US State Department and Texas, the latter limited by the fact that the pipeline is only within the state. Observers are unclear what other approvals he will need to get, the Texas Tribune says.
FERC also approved a three-year extension until 2029 for developer Tellurian to complete its 96-mile Driftwood pipeline and proposed 27 million metric tpy LNG terminal south of Lake Charles, La., which the company said it was delayed by COVID-19. supply chain issues. That project, in which Bechtel began construction of the first phase in 2022, already has a DOE permit to export LNG to non-free-trade countries.
But a long-awaited decision on the CP2 LNG project in Cameron Parish, La., intended to export 20 million metric tpy of gas a year when completed, was not announced.
More project decisions await
In a letter to FERC, CP2 developer Venture Global LNG said it wants a decision on the project by FERC’s next open meeting on March 21. “Any further delay in project clearance could undermine the confidence of global clients and financial markets,” the firm said. said
The meeting also did not address two key initiatives to ease the power grid’s woes: a transmission planning final rule and a possible overhaul of FERC reforms to address large backlogs of grid connections to to renewable energy projects, without any forecast of when the commission could take on either. matter
But the commission unveiled a new policy to deny preliminary permits for new hydroelectric projects on Native American lands if tribal governments have officially objected. The agency’s denial of permits for four hydroelectric facilities to be located on Navajo Nation lands was the first test. Tribal leaders claim the developers did not seek their approval in advance.
One developer, Rye Development, said in a statement that it “values the importance of continued consultation with tribal nations to address issues … of importance at the project sites.”
Despite Phillips’ elevation, the normally five-person commission now operates with just three members and could lose one more this year, affecting decisions that require a quorum. Commissioner Clements’ term expires in June and, according to recent reports, she may not seek another, although she may continue to serve until December 31.
