Page 11 - NorthAmOil Week 31 2021
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NorthAmOil POLICY NorthAmOil
Court orders further regulatory analysis
on two Texas LNG projects
TEXAS THE US Circuit Court of Appeals for the DC Rio Grande LNG. A third proposed LNG termi-
Circuit ruled this week that the environmental nal, Annova LNG, had initially been included in
analyses supporting regulatory approvals for two the lawsuit, but that project was scrapped earlier
proposed Texas-based LNG export projects were this year.
deficient. The plaintiffs claimed that the FERC had
While the court did not revoke the approvals, violated NEPA because it anchored its author-
it did rule that the US Federal Energy Regulatory isations for the projects in faulty environ-
Commission (FERC) needed to carry out further mental reviews of the projects’ greenhouse
analysis on the impacts of the two projects on cli- gas (GHG) emissions. They alleged that the
mate change and low-income or minority com- facilities would “have higher greenhouse gas
Both projects would be munities in Cameron County, Texas. emissions than nearly every other project
located at the Port of A unanimous panel at the appeals court ruled FERC has reviewed”.
Brownsville. that the FERC had violated the National Envi- The court agreed that the regulator had failed
ronmental Policy Act (NEPA) with the deficient to respond to “significant” opposing viewpoints
environmental analyses on the Texas LNG and concerning the adequacy of its analyses of the
Rio Grande LNG projects. projects’ GHG emissions.
Both projects would be located at the Port of “This decision clearly demonstrates that the
Brownsville in South Texas, where local oppo- Commission has the authority and obligation to
sition to their construction has been stronger meaningfully analyse and consider the impacts
compared to other projects in different parts of from [GHG] missions and impacts to environ-
the state. Local community groups opted last mental justice communities,” said the FERC’s
year to contest the FERC’s authorisations of the chairman, Richard Glick, who had dissented
two projects in court, as well as the approval for against the projects’ approval when the regulator
the Rio Bravo gas pipeline, which would serve issued its authorisations.
PROJECTS & COMPANIES
Tellurian’s latest offtake deal almost
covers Driftwood LNG first phase
LOUISIANA US LNG developer Tellurian announced last focus on financing the project. The company is
week that it had signed a sales and purchase targeting early 2022 for giving its engineering,
agreement (SPA) with Royal Dutch Shell for procurement and construction (EPC) contrac-
offtake from its planned Driftwood LNG export tor, Bechtel, notice to proceed.
terminal in Louisiana. Driftwood would have a total capacity of
The SPA is the third that Tellurian has final- 27.6mn tpy from up to 20 small liquefaction
ised in the past 10 weeks and brings the compa- trains built in four phases. The company has
ny’s total offtake commitments to 9mn tonnes now opted for a first phase consisting of two
per year – covering almost all of Driftwood’s first plants, each with four trains – the smaller of
phase of 9.2mn tpy. two options it had been considering for this
The deal covers the sale of 3mn tpy of LNG phase.
to Shell over a 10-year period – similar to The SPA comes shortly after Tellurian and
agreements with commodity traders Vitol and France’s TotalEnergies recently terminated a
Gunvor that Tellurian has announced in recent supply agreement that would have also seen the
weeks. In line with those two agreements, French company become an equity participant
the LNG that will be supplied to Shell will be in Driftwood. In a filing with the US Securities
indexed to a combination of two indices – the and Exchange Commission (SEC) last month,
Japan Korea Marker (JKM) and the Dutch Title Tellurian said the agreement had been cancelled
Transfer Facility (TTF), each netted back for because it was “not consistent” with the com-
transportation charges. mercial deals it had signed with other parties.
Tellurian said the offtake agreements are This also illustrates its shift away from an equi-
sufficient to support the launching of its first ty-based financing model for Driftwood to one
two plants at Driftwood and that it would now based on offtake agreements.
Week 31 05•August•2021 www. NEWSBASE .com P11
