NextDecade signed lease agreements with the State of Texas and the City of Texas City for a close to a 1,000-acre site at Shoal Point for the potential development of a multi-billion dollar LNG export facility.
Texas City owns almost 376 acres at Shoal Point, while the Texas General Land Office manages the adjoining 618 acres of state land, the company said in its statement on Tuesday.
The agreement comes as the State of Texas aims to market new natural gas finds totaling over 90 trillion cubic feet (tcf) discovered in 2016.
Together, the Ports of Houston, Texas City, and Galveston form the largest port complex in North America and the NextDecade project would be the first LNG facility in the area.
The Shoal Point site, located just east of Texas City’s major petrochemical industrial complex and 40-miles southeast of Houston, is well suited for an LNG export terminal, according to NextDecade.
“The ample acreage at Shoal Point allows for significant design flexibility and potential expansion capability, increasing the project’s appeal to potential customers and investors. The site also benefits from its deep-water access and proximity to nearby natural gas pipeline infrastructure,” the statement reads.
In addition to the potential Shoal Point facility, NextDecade’s current focus includes its Rio Grande LNG project in South Texas.
The multi-billion dollar, 27 mtpa Rio Grande LNG project is advancing through the Federal Energy Regulatory Commission permitting process.
The company added that the project at Shoal Point would benefit from the ability to replicate much of the design and engineering work done for Rio Grande LNG.