​The Award for Fastest Rebound in the U.S. Oil and Gas Industry goes to… LNG, of course. Export demand for American LNG hasn’t just risen as global economies shudder back to life; it’s back to smashing pre-COVID records with a sledgehammer. And while last year’s proposed greenfield projects may have sat in temporary timeout, they’re getting recharged in 2021. Reese Energy Consulting today is studying the latest announcements from three LNG export producers with terminal projects on the brain. One producer, however, will be scouting for a new site. Houston-based Texas LNG has signed a 50-year lease on 625 acres in the Port of Brownsville to build its 4 MTPA facility, bringing the project closer to a FID. Va.-based Venture Global, whose $4.5 billion, 10 MTPA Calcasieu Pass terminal in La., is currently under construction, wants to build another next door—this one with a nameplate capacity of 20 MTPA. On the other hand, Houston-based NextDecade is now back to house hunting for its second Texas terminal after determining Galveston Bay wasn’t a suitable site. We’ll keep you posted.

What do you think? Learn more about REC and our LNG services at www.ReeseEnergyConsulting.com.

2 Comments

  1. Retired

    Texas LNG signed an agreement on the TERMS of a 50 year Port of Brownsville site lease, as have Rio Grande LNG and Annova LNG. But none of the three have “enacted” a lease, binding them to 30 year leases with two 10 year extensions. They can’t “exacted” their leases until they’ve made their Final Investment Decisions (FIDs).

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  2. John Young

    NextDecade is NOT house hunting for a new Galveston Bay LNG project, which initiated the FERC pre-filing process at the end of 2018 only to put the project on hold in February 2019 to focus on its Rio Grande LNG and Rio Bravo Pipeline projects.

    NextDecade has floated 5 projects since it was incorporated in 2010, three of which are now dead: the Pelican Bay LNG project, the Inisfree LNG project, and the Galveston Bay LNG project. A fourth has been sold off (the Rio Bravo Pipeline).

    The Rio Grande LNG project is all NextDecade has left.

    Importantly, NextDecade lost a $7 billion dollar 20 year deal with the French company Engie in November 2020 because Engie decided it didn’t want to have anything to do with Rio Grande LNG. It lost the Inisfree FSRU project at the end of December 2020 because the Irish Port of Cork decided it didn’t want to have anything to do with the project any more.

    NextDecade was incorporated in 2010 but hasn’t yet been able to put shovel to ground anywhere, has yet to earn its first penny of LNG revenue, and has fallen silent about when we can expect it to actually produce any LNG.

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