Texas readies for a surge in LNG construction

HOUSTON (AP) – A wave of new LNG terminals is expected to be constructed along the Texas-Louisiana Gulf Coast should President-elect Donald Trump carry through on his pledge to end the Biden administration’s nearly year-long pause on permitting LNG projects. Such a move would substantially increase the flows of natural gas out of the United States, providing an economic stimulus to communities like Port Arthur and Brownsville. But the rush to build comes at a time of increasing concern around the risk those terminals pose to the earth’s climate and the health of surrounding residents, as outlined in a study released by the Biden Administration this week.

Currently there are 11 LNG projects awaiting export permits from the Department of Energy, almost all of which would be built between New Orleans and Corpus Christi, in addition to a development near Brownsville that had its export permit vacated by a federal judge after it had already begun construction. Six of those projects are expected to begin construction once they receive their permits, increasing the country’s LNG exports, already the largest in the world, by more than 40%, according to analysis by research firm S&P Global. “We see overall (global) demand growing by 70% between now and 2040,” said Dan Yergin, vice chairman of S&P. “If the U.S. doesn’t export LNG, this isn’t a vacuum. It will primarily be replaced by natural gas from other countries, who will be all too happy to take their place of the U.S.” And drillers in Texas oil and gas fields are eager to gain access to natural gas markets overseas. With the ongoing oil and gas boom in West Texas, the natural gas they could sell for a pittance in Midland can be sold for a large profit in Amsterdam or Singapore.