Cameron County, Texas, Looks Toward $44 Billion in Potential Project Starts, Thanks to LNG

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking nearly $44 billion in projects set to kick off in Cameron County, Texas, the southernmost county in the state, along the Gulf Mexico.

Much of project activity revolves around the liquefied natural gas (LNG) sector. Chief among these projects is NextDecade's (The Woodlands, Texas) planned Rio Grande LNG production and export terminal in the Brownsville-Port Isabel area of Texas. The first phase of the project will consist of the construction of two 4.5 million-ton-per-year trains. The facility would obtain gas from the proposed Rio Bravo pipeline, drawing gas from the Agua Dulce hub, with access to the Permian and Eagle Ford basins. The first phase of the project is tentatively planned to kick off construction in summer 2018 and take about four years to complete. This could potentially be followed by three additional phases, each producing 9 million tons per year of LNG. Together, the projects have a total investment value (TIV) of $32 billion. For more information, see January 26, 2017, article - NextDecade Plans Rio Grande LNG's Construction, Seeks New Site for 2nd Project.

A smaller LNG project also contributes to Cameron County's $44 billion in planned project activity. Texas LNG Limited's (Houston, Texas) planned 2 million-metric-ton-per-year LNG liquefaction plant at the Port of Brownsville could begin construction by next summer, taking about three years to complete. Another 2 million-ton train is planned for the site, but wouldn't commence construction for several years. The projects have a combined TIV of $3 billion.

Annova LNG LLC (Houston) also is planning an LNG liquefaction plant at the Port of Brownsville. The company's three-phase, 6 million-ton-per-year facility could begin construction on the first phase (2 million tons) by early next year. This could be followed by two additional phases, each adding an additional 2 million tons per year of liquefaction capacity. Black & Veatch (Overland Park, Kansas) is performing engineering services for the project. The first phase of development could be completed in early 2021, while completion of the third and final stage remains several years away. Together, the three stages have a combined TIV of $3.75 billion.

Jesus Davis, Industrial Info's vice president of research for the Oil & Gas Industry, said: "There are over half a dozen projects proposed spread across the Texas Gulf Coast from Beaumont to Brownsville. Brownsville has the highest concentration of plants proposed due to several factors: proximity to pipeline hubs, such as the Agua Dulce Hub, which bring gas from producing fields in the Eagle Ford, as well as West Texas and other regions, and probably most importantly is the availability of the acreage required with access to a deepwater channel. Brownville is one of the last Texas ports that can accommodate a development requiring 600 or more acres with waterway access able to accommodate LNG carriers."

Davis continued: "The challenge is really going to be on the developers to gain federal permits, signed contracts and funding to actually move forward with their proposals. As attractive and reasonable as the land is, it is still a billion-dollar plant planned for a market that is preparing to be oversupplied for the next few years."

While the LNG sector certainly contributes to Cameron County's overall planned project spending, billion-dollar projects in other sectors are also being tracked by Industrial Info. Among these is a planned natural gas pipeline from the Agua Dulce gas hub in Nueces County to interconnect with the Sur de Pas - Tuxan Pipeline, currently being designed, that will extend to Mexico. Construction on the project is planned to kick off in summer of 2018 and be completed in the fourth quarter of 2019. The pipeline will be approximately 168 miles long and will transport up to 2.6 billion cubic feet per day of natural gas.

Also of note is a planned offshore windfarm near South Padre Island. Coastal Point Energy LLC (New Iberia, Louisiana) is conducting the site study for the grassroot, 500-megawatt project. Offshore wind projects have been notoriously unsuccessful in getting off the ground in North America. Should this one actually make it to construction in late 2020, it would be completed by the end of the 2023 if all goes well.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.