LNG project sets up Texas as “energy capital of the world”

Massive investments in LNG projects are setting up Texas as an energy hub on a global scale.

By Joanne McIntyre, Stainless Steel World

US energy infrastructure company Sempra Infrastructure Partners (SIP) recently announced the start of Phase 1 of the Port Arthur LNG project in Port Arthur, Texas in a joint venture with an affiliate of ConocoPhillips. With the project estimated to cost USD13 billion, it’s yet another example of how the Lone Star State is becoming the energy capital for the US, and maybe the world. “At Sempra, we believe bold, forward-looking partnerships will be central to solving the world’s energy security and decarbonization challenges,” said Jeffrey W. Martin, chairman and chief executive officer of Sempra.

“With strong customers, top-tier equity sponsors in ConocoPhillips and KKR and a world-class contractor in Bechtel, this project has the potential to become one of America’s most significant energy infrastructure investments over time, while creating jobs and spurring continued economic growth across Texas and the Gulf Coast region.”

“Sempra’s selection of Port Arthur as the location for a new natural gas liquefication and export terminal is a strategic decision that will cement Texas’ position as the energy capital of the world,” said Texas Gov. Greg Abbott. “With a highly skilled workforce and business-friendly climate, and as a national leader in LNG exports, Texas is the prime location to expand LNG operations to unleash the United States’ full economic potential in such a critical industry.”

Port Arthur Phase 1

The Port Arthur LNG Phase 1 project is designed to include two natural gas liquefaction trains, two LNG storage tanks and associated facilities with a capacity of approx. 13 million tonnes per annum (Mtpa). Total capital expenditures for the Port Arthur Phase 1 project are estimated at USD13 billion.

“Our strategic LNG partnership with Sempra will help supply growing global demand for natural gas, a lower greenhouse gas emissions-intensity fuel expected to play a critical role in the energy transition and global energy mix going forward,” said Ryan Lance, ConocoPhillips chairman and chief executive officer.

Sempra Infrastructure has contracted with global engineering, construction and project management firm Bechtel Energy Inc. and has issued a final notice to proceed with the project. The expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028, respectively.

“We’re proud to partner with Sempra to deliver a world-class LNG facility. Building from mature, scalable energy technologies helps safeguard our energy supplies and promote the transition to lower-carbon energy,” said Brendan Bechtel, Chairman and CEO of Bechtel. The Phase 1 project is expected to create an estimated 5,000 highly skilled jobs during construction and boost the economies in Port Arthur and Jefferson County.

Accelerating access

Part of Sempra’s mission is to be a leader in North America’s growing liquefied natural gas (LNG) export market, developing the infrastructure to bring cleaner, more reliable and more affordable energy to the world. Sempra’s existing and proposed LNG projects are designed to leverage North America’s abundance of natural gas through LNG exports to reduce its trade deficit, create jobs, meet global energy demand and improve the energy security of its allies. Sempra’s LNG operations work to provide US producers of natural gas with access to global markets.

Sempra Infrastructure owns an interest in Cameron LNG, a 12 million ton per annum (Mtpa) export facility operating in Hackberry, Louisiana, and is currently developing additional LNG export facilities on the Gulf Coast and Pacific Coast of North America through Cameron LNG Phase 2, Port Arthur LNG in Texas and Energía Costa Azul LNG (ECA) in Mexico.

Texas, the LNG hub

Texas is one of the leading states in the United States for natural gas production and liquefaction. It has several LNG liquefaction plants that produce liquefied natural gas for export to other countries and is rapidly becoming known as the energy hub of the USA. The main LNG liquefaction plants in Texas with export to other countries are:

• Freeport LNG has three liquefaction trains that can produce up to 15 million tonnes per annum (mtpa) of LNG. The first train began operations in 2019, and the second and third trains started operations in 2020.
• Corpus Christi LNG has two liquefaction trains with a total capacity of 11 mtpa. The first train started operations in 2018, and the second train started operations in 2019.
• Cheniere Energy Sabine Pass in Louisiana, also has a presence in Texas. It has five liquefaction trains with a total capacity of 30 mtpa, making it the largest LNG facility in the United States. The first train began operations in 2016, and the fifth train started operations in 2019.
• Golden Pass LNG has three liquefaction trains with a total capacity of 15.6 mtpa. The first train is expected to start operations in 2024, and the second and third trains are expected to start operations in 2025. Golden Pass LNG is a joint venture between ExxonMobil, Qatar Petroleum, and ConocoPhillips.
• Rio Grande LNG is currently under development. The facility is expected to have six liquefaction trains with a total capacity of 27 mtpa. Rio Grande LNG is a joint venture between NextDecade Corporation and a subsidiary of Royal Dutch Shell.

Stainless steel in LNG production

Stainless steel is a popular material used in various stages of liquefied natural gas (LNG) production due to its excellent corrosion resistance, durability, and low maintenance requirements. LNG production typically involves a multi-step process that includes gas processing, liquefaction, storage, and transportation. Stainless steel is used in each of these steps for various applications.

In gas processing, stainless steel is commonly used for the construction of equipment such as separators, scrubbers, and heat exchangers. These components are used to remove impurities from natural gas before it undergoes liquefaction. Stainless steel is preferred because it can withstand the harsh conditions of gas processing, such as high temperatures and corrosive environments. In the liquefaction process, stainless steel is used for the construction of cryogenic equipment, such as tanks, heat exchangers, and piping. Stainless steel can withstand the extremely low temperatures required for liquefaction, and it also resists cracking under thermal stress.

Stainless steel is also used for LNG storage tanks due to its excellent corrosion resistance and strength. These tanks are typically constructed using a double-wall design, with the inner wall made of stainless steel and the outer wall made of carbon steel. The space between the two walls is insulated with a vacuum, which helps to maintain the temperature of the stored LNG.

Finally, stainless steel is used for LNG transportation, particularly in the construction of LNG carriers. These vessels are typically constructed using a combination of stainless steel and other materials to provide the required strength and corrosion resistance.

In conclusion, stainless steel plays a critical role in the production of LNG due to its excellent corrosion resistance, durability, and low maintenance requirements. Its use in LNG production ensures that the industry can operate safely and efficiently, and it enables the delivery of this important energy source to markets around the world.