10/12 Industry Report: Net-zero emissions LNG plant eyes 2027 startup, but COVID-19 delays supplier announcement

The developers of a Louisiana LNG facility touting net-zero greenhouse gas emissions—from wellhead to production—have temporarily postponed the announcement of a natural gas supplier until later in the year, even though the project remains on track for a 2027 startup.

Chas Roemer, chairman of G2 Net-Zero LNG, says designs for the $9 billion, 1,250-acre development in Cameron Parish likely will be submitted to the Federal Energy Regulatory Commission for review later this year. While Roemer admits that COVID-19 concerns have injected a bit of uncertainty and caused some owners to tap the brakes, he remains confident that the plant’s net-zero emissions goal will make it stand out from the crowd.

He says the natural gas will likely come from fields in Louisiana and Texas, but that an official announcement regarding a supplier has been delayed. “It’s a long term project,” Roemer adds. “In the LNG market, it’s typically a three- to six-year time frame for a development, so even though we’re in the middle of the (COVID-19) chaos right now, it hasn’t changed our day-to-day operations in terms of planning.”

Originally envisioned as a traditional LNG plant, the facility began a transformative re-design two years ago. G2 now hopes to produce LNG in a more sustainable way by capturing process emissions and selling “three or four” of the resulting byproducts. “These are marketable products,” Roemer says. “It’s about capturing those emissions and selling those to other industries.” G2 has enlisted the help of global energy innovators Siemens Energy, NET Power, 8 Rivers and EJM Associates LLC to assist with the design, and expects to employ about 2,500 workers during construction, as well as create 500 permanent skilled-laborer positions.

While natural gas has already gained worldwide recognition as a cleaner burning fuel, Roemer hopes his company’s innovative approach will raise the bar. G2 Net-Zero LNG plans to develop replicable processes and technologies that will beat, by decades, the 2050 goals designated by the Paris Climate Agreement. “The world is demanding change and financing will be directly tied to these emissions goals, so we feel we’ll be ahead of our competitors.”

At present, Evans-Graves Engineers Inc. of Baton Rouge is performing preliminary environmental studies at G2’s site along the Calcasieu Ship Channel. The site, situated about three miles from the Gulf of Mexico, was approved for the importation of LNG several years ago. “Our long-term vision is important for Louisiana, as we can use our local resources in a sustainable way, develop affordable, clean energy, and create thousands of jobs in the process,” Roemer says.

He says the plant could potentially begin generating non-LNG revenue within 24 months of FERC approval via the creation of its own electricity and the capture and selling of the resulting emissions.

nash@sandersonstrategies.com