Page 14 - NorthAmOil Week 05 2021

NorthAmOil PROJECTS & COMPANIES NorthAmOil

NextDecade abandons Galveston Bay LNG plan

TEXAS US-BASED NextDecade announced last week federal regulators for Galveston Bay LNG. The
that it had decided not to proceed with plans to company said it had also requested that the US
develop its Galveston Bay LNG project on the Department of Energy (DoE) cancel its 2018
Texas Gulf Coast. The decision was made fol- authorisation of LNG exports from the project.
lowing a review of the proposed plant’s location, NextDecade noted that its abandonment
with NextDecade saying it had determined that of Galveston Bay would have no impact on its
the site in Texas City was “not suitable” for the other proposed export plant, Rio Grande LNG
development of an LNG facility and associated in South Texas, on which it is targeting a final
infrastructure. investment decision (FID) later this year. Indeed,
The company explained that a portion of the the company believes Galveston Bay’s demise
Galveston Bay LNG site is under federal naviga- makes Rio Grande all the more valuable.
tion servitude, and serves as an active Dredged “While it is unfortunate that the Galveston
Material Placement Area (DMPA) for the Texas Bay LNG site is not viable for large-scale infra-
City Ship Channel Federal Project. As a result, structure development, this determination only
Galveston Bay LNG cannot be built without the further enhances the value of – and the need for
US Army Corps of Engineers requesting that – NextDecade’s world-class Rio Grande LNG
Congress authorise the release of its constitu- project in the Port of Brownsville,” stated Nex-
tional right of navigation servitude over this tDecade’s chairman and CEO, Matt Schatzman.
DMPA. NextDecade said late-stage development
This has led to “the potential for prolonged activities were ongoing at Rio Grande as it con-
uncertainty around the prospect of release tinued to work on securing the remaining com-
of federal navigation servitude” by the Army mercial agreements it needs to proceed to FID.
Corps, NextDecade said. And because of this The company suffered a high-profile setback
uncertainty, it has decided to forfeit the site with these efforts last year, when France’s Engie
and withdraw from pre-filing proceedings with terminated talks over a potential supply deal.™
ENERGY TRANSITION

Occidental delivers carbon-

neutral oil cargo to India

US-INDIA OCCIDENTAL Petroleum announced this verified under the Verra Verified Carbon
week that its Oxy Low Carbon Ventures division Standard. This means they met eligibility cri-
had delivered a cargo of carbon-neutral crude oil teria for the UN’s International Civil Aviation
to Reliance Industries Ltd (RIL) in India. Occi- Organization’s Carbon Offsetting and Reduc-
dental said the 2mn barrel cargo was the energy tion Scheme for International Aviation (COR-
industry’s first major petroleum shipment for SIA), Occidental noted. The volume of offsets
which greenhouse gas (GHG) emissions asso- applied against the cargo were sufficient to
ciated with the entire crude lifecycle had been cover the expected GHG emissions from the
Occidental expects offset. entire lifecycle, including production, trans-
to begin producing The transaction was arranged in conjunction port, storage, shipping, refining, subsequent
net-zero oil in 2024, with Macquarie Group’s commodities and global use and combustion, it added.
when it starts up new markets division, and Occidental described it as The transaction involved the bundling of car-
direct air capture (DAC) the “first step in the creation of a new market bon offsets with crude, with Macquarie arrang-
facilities. for climate-differentiated crude oil”. The com- ing and structuring the bundled offset supply
pany also views carbon-neutral oil as a stepping and retirement.
stone to the development of net-zero oil, which The carbon-neutral cargo delivery comes as
it intends to produce eventually, accompanied Occidental pursues one of the most ambitious
by the capture and sequestration of atmospheric net-zero emissions strategies to be unveiled by a
carbon dioxide (CO2) from these operations. US oil company. The producer is targeting net-
Occidental expects to begin producing such net- zero emissions classed as Scope 1 and 2 – those
zero oil in 2024, when it starts up new direct air from direct operations and indirect ones from its
capture (DAC) facilities. power generation, heating and cooling require-
The cargo delivered to RIL was produced ments – by 2040. By 2050, it aims to expand this
in the US’ Permian Basin. The offsets were to include Scope 3 emissions – those generated
sourced from a variety of projects that were by the end-use of its products by its customers.™

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