U.S. Energy Department Issues Draft Review of New Fortress Energy’s LNG Export Project

The U.S. Department of Energy on Sept. 21 released a draft environmental review assessing potential environmental impacts associated with allowing the New Fortress Energy Altamira FLNG Project to export natural gas to Mexico, and after liquefaction in Mexico, to other countries in a combined total volume equivalent to 158 billion cubic feet (Bcf) per year. The project includes a floating liquefaction and export terminal that would be located off the coast of Altamira, Tamaulipas, Mexico, in the Gulf of Mexico.

New Fortress Energy filed an application last September seeking authorization to re-export from Mexico U.S.-sourced natural gas for which it has acquired title in the U.S., as well as U.S.-sourced volumes for which it acquires title in Mexico. The company requested authorization to export to countries with which the U.S. has entered into a free trade agreement, or FTA countries, and any with which trade is not prohibited by U.S. law or policy, or non-FTA countries, under the Natural Gas Act. The authorization would be in effect until Dec. 31, 2050.

The department has already granted the FTA portion of the application, allowing NFE to export natural gas to Mexico in the requested volume. This includes both pipeline exports and re-export after liquefaction in Mexico to FTA countries. The non-FTA volume is currently under evaluation and would not be added to the FTA volume. Regarding the non-FTA portion of the application, DOE issued a notice inviting comments and protests, leading to the Sierra Club opposing this section.

The proposed transportation of natural gas involves using existing border-crossing facilities and potentially future cross-border pipelines connecting to the Sur de Texas–Tuxpan Pipeline offshore system in Mexican waters. NFE also plans to acquire natural gas in Mexico from upstream suppliers who have exported it from the U.S., acting as an agent.

This action is in line with the National Environmental Policy Act of 1969 and is part of the department’s decision -making process regarding authorization under the Natural Gas Act. The draft examines various aspects, including the environmental impacts of natural gas exploration and production in the lower 48 states, the use of cross-border pipeline facilities, Mexico’s environmental review process, marine transport of LNG, and global greenhouse gas emissions.

Comments on the draft review are due by Oct. 23, 2023.