A proposed new liquified natural gas (LNG) terminal in Ingleside could boost the city’s economy by as much as $1 billion, according to estimates.
Pangea LNG North America Holdings said it has filed an application with the US Department of Energy to build the plant on a 550-acre tract fronting the Port of Corpus Christi’s La Quinta Channel. The land is between the Kiewit Offshore plant and the Helix plant in Ingleside, City Manager Jim Gray said.
The project would export up to eight million tons per year of LNG to all current and future countries with which the United States has a free trade agreement (FTA), the journal of the Society of Petroleum Engineers reported. Pangea said soon it will file a similar application for LNG exports to any country without an FTA with the United States, the magazine said.
Pangea LNG North America Holdings has had the site under option since June. A separate pipeline project would connect the LNG plant to the gas transmission network. If the project moves ahead on schedule, the plant could be in operation by 2018.
It is the third LNG plant proposed for the area. Cheniere has had plans for a plant on the north shore of Corpus Christi Bay for some time, and the recent purchase of the former Naval Station Ingleside by Oxy is seen as making way for a second liquid gas plant.
"This is the latest in a string of applications submitted to the US Federal Authorities for LNG export terminals highlighting the significant momentum gathering for such ventures," Marina Petroleka, head of energy and infrastructure analysis for Business Monitor International, told the SPE journal.
Kathleen Eisbrenner, Pangea LNG's chief executive officer, said, "We expect there to be several successful LNG export projects on the Texas coast in the coming years because of the large new natural gas reserves in North America. Exporting LNG will help stabilize U.S. natural gas prices, sustain drilling and production jobs in South Texas and stimulate investment in developing additional gas reserves." John Godbold, project director for Pangea LNG, said an intensive project feasibility and preliminary design process is now underway on the South Texas project. The assessment is being conducted by CB&I, a leading international engineering, procurement and construction company.
The South Texas LNG Export project will require federal, state and local regulatory approval. The U.S. Federal Energy Regulatory Commission (FERC) is the lead agency in the permitting process. If this process moves forward on schedule the South Texas LNG terminal could be in operation by 2018.