Notice2023-20427
Notice of Availability of the Draft Environmental Assessment for the New Fortress Energy Altamira FLNG Project
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Published
September 21, 2023
Issuing agencies
Energy Department
Abstract
The U.S. Department of Energy (DOE) has prepared a Draft Environmental Assessment (EA) to determine how to review the potential environmental impacts associated with authorizing NFE Altamira FLNG, S. de R.L. de C.V. (NFE Altamira) to export U.S.-sourced natural gas to Mexico and, after liquefaction in Mexico, to other countries from the proposed NFE Altamira FLNG Project. DOE is also announcing a public comment period to receive comments on the Draft EA. DOE prepared the Draft EA in accordance with the National Environmental Policy Act of 1969 (NEPA), to inform its decision on authorization under the Natural Gas Act (NGA).
Full Text
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<title>Federal Register, Volume 88 Issue 182 (Thursday, September 21, 2023)</title>
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[Federal Register Volume 88, Number 182 (Thursday, September 21, 2023)]
[Notices]
[Pages 65160-65161]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-20427]
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DEPARTMENT OF ENERGY
[Docket No. 22-110-LNG]
Notice of Availability of the Draft Environmental Assessment for
the New Fortress Energy Altamira FLNG Project
AGENCY: Office of Fossil Energy and Carbon Management, Department of
Energy.
ACTION: Notice of availability.
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SUMMARY: The U.S. Department of Energy (DOE) has prepared a Draft
Environmental Assessment (EA) to determine how to review the potential
environmental impacts associated with authorizing NFE Altamira FLNG, S.
de R.L. de C.V. (NFE Altamira) to export U.S.-sourced natural gas to
Mexico and, after liquefaction in Mexico, to other countries from the
proposed NFE Altamira FLNG Project. DOE is also announcing a public
comment period to receive comments on the Draft EA. DOE prepared the
Draft EA in accordance with the National Environmental Policy Act of
1969 (NEPA), to inform its decision on authorization under the Natural
Gas Act (NGA).
DATES: The 30-day public comment period extends from the date of
publication of this Notice in the Federal Register through October 23,
2023.
ADDRESSES: Questions concerning the Draft EA or requests for a paper
copy should be directed to: Brian Lavoie via email to
<a href="/cdn-cgi/l/email-protection#80e2f2e9e1eeaeece1f6efe9e5c0e8f1aee4efe5aee7eff6"><span class="__cf_email__" data-cfemail="492b3b2028276725283f26202c092138672d262c672e263f">[email protected]</span></a> or phone at (202) 586-2459.
Electronic Filing by email (Strongly encouraged):
<a href="/cdn-cgi/l/email-protection#82e4e7f0e5e3f1c2eaf3ace6ede7ace5edf4"><span class="__cf_email__" data-cfemail="b6d0d3c4d1d7c5f6dec798d2d9d398d1d9c0">[email protected]</span></a>.
Postal Mail, Hand Delivery, or Private Delivery Services (e.g.,
FedEx, UPS, etc.): U.S. Department of Energy (FE-34), Office of
Regulation, Analysis, and Engagement, Office of Fossil Energy and
Carbon Management, Forrestal Building, Room 3E-056, 1000 Independence
Avenue SW, Washington, DC 20585.
Due to potential delays in DOE's receipt and processing of mail
sent through the U.S. Postal Service, we encourage respondents to
submit filings electronically to ensure timely receipt. DOE is
concurrently providing notice of the Draft EA to the cross-border host
state of Texas, and to all Indian Tribes on or within 100 kilometers of
the U.S. border in that state.
An electronic copy of the Draft EA may be found online on the
following website: <a href="https://www.energy.gov/sites/default/files/2023-09/NFE%20Altamira%20FLNG_Draft%20Environmental%20Assessment%20-Final%209.15.23.pdf">https://www.energy.gov/sites/default/files/2023-09/NFE%20Altamira%20FLNG_Draft%20Environmental%20Assessment%20-Final%209.15.23.pdf</a>.
FOR FURTHER INFORMATION CONTACT: Brian Lavoie, U.S. Department of
Energy (FE-34), Office of Regulation, Analysis, and Engagement, Office
of Resource Sustainability, Office of Fossil Energy and Carbon
Management, Forrestal Building, Room 3E-042, 1000 Independence Avenue
SW, Washington, DC 20585, (202) 586-2459, <a href="/cdn-cgi/l/email-protection#01637368606f2f6d60776e68644169702f656e642f666e77"><span class="__cf_email__" data-cfemail="5b3929323a3575373a2d34323e1b332a753f343e753c342d">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
On September 9, 2022, NFE Altamira filed an application
(Application) \1\ with DOE's Office of Fossil Energy and Carbon
Management (FECM) under section 3 of the NGA.\2\ In the Application,
NFE Altamira stated that it was submitting the Application in
connection with the development of a floating liquefaction and export
terminal project proposed by its affiliate, Mexico FLNG S. de R.L. de
C.V.\3\ This proposed facility, known as New Fortress Energy's Altamira
FLNG Project (Project),\4\ would be located off the coast of Altamira,
Tamaulipas, Mexico, in the Gulf of Mexico.\5\
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\1\ NFE Altamira FLNG, S. de R.L. de C.V., Application for Long-
Term, Multi-Contract Authorizations to Export Natural Gas to Mexico
and to Re-Export Liquefied Natural Gas from Mexico to Free Trade
Agreement and Non-Free Trade Agreement Nations, Docket No. 22-110-
LNG (Sept. 9, 2022) [hereinafter NFE Altamira App.].
\2\ 15 U.S.C. 717b. The authority to regulate the imports and
exports of natural gas, including liquefied natural gas, under
section 3 of the NGA has been delegated to the Assistant Secretary
for FECM in Redelegation Order No. S4-DEL-FE1-2023, issued on April
10, 2023.
\3\ NFE Altamira App. at 2.
\4\ The acronym ``FLNG'' in the natural gas industry refers to
``floating liquefied natural gas.''
\5\ NFE Altamira App. at 2, 5, 18.
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NFE Altamira requests long-term, multi-contract authorization to
export U.S.-sourced natural gas to Mexico, and after liquefaction in
Mexico, to other countries as described below, in a combined total
volume equivalent to 158 billion cubic feet (Bcf) per year (Bcf/yr) of
natural gas (0.43 Bcf per day (Bcf/d)).\6\ NFE Altamira seeks to export
this volume of natural gas for the following purposes:
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\6\ Id. at 1.
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(i) To use approximately 13 Bcf/yr (0.03 Bcf/d) in Mexico as ``fuel
in the liquefaction process and [ ] process gas loss during the
pretreatment process;'' \7\ and
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\7\ Id. at 5 (stating that the two liquefaction systems would
consume approximately 6.5 Bcf/yr of natural gas each, for a total of
13 Bcf/yr of natural gas) & n.13.
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(ii) To use approximately 145 Bcf/yr of natural gas (0.40 Bcf/d) of
natural gas in the proposed Project, where the U.S.-sourced natural gas
would be liquefied, then re-exported \8\ as liquefied natural gas (LNG)
by vessel to:
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\8\ For purposes of this proceeding, ``re-export'' means to ship
or transmit U.S.-sourced natural gas in its various forms (gas,
compressed, or liquefied) subject to DOE's jurisdiction under the
NGA, 15 U.S.C. 717b, from one foreign country (i.e., a country other
than the United States) to another foreign country.
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(a) Any country with which the United States has entered into a
free trade agreement (FTA) requiring national treatment for trade in
natural gas (FTA countries), under NGA section 3(c); \9\ and
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\9\ 15 U.S.C. 717b(c). The United States currently has FTAs
requiring national treatment for trade in natural gas with
Australia, Bahrain, Canada, Chile, Colombia, Dominican Republic, El
Salvador, Guatemala, Honduras, Jordan, Mexico, Morocco, Nicaragua,
Oman, Panama, Peru, Republic of Korea, and Singapore. FTAs with
Israel and Costa Rica do not require national treatment for trade in
natural gas.
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(b) Any other country with which trade is not prohibited by U.S.
law or policy (non-FTA countries), under NGA section 3(a).\10\
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\10\ 15 U.S.C. 717b(a); see NFE Altamira App. at 2, 7.
NFE Altamira further states that it seeks these authorizations ``in
order to re-export from Mexico U.S.-sourced natural gas for which it
has acquired title in the United States, as well as U.S.-sourced
volumes for which it acquires title in Mexico.'' \11\ NFE Altamira
requests the FTA and non-FTA authorizations on a non-additive basis for
a term to commence on the date of first export following the
commencement of commercial operation of the Project, and extending
through December 31, 2050.\12\
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\11\ NFE Altamira App. at 2.
\12\ Id. at 2-3, 7.
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On March 3, 2023, in Order No. 4960, DOE granted the FTA portion of
the Application, as required by NGA section 3(c).\13\ NFE Altamira is
thus authorized to export natural gas to Mexico in the total requested
volume of 158 Bcf/yr of natural gas--which includes export by pipeline
(13 Bcf/yr) and re-export after liquefaction in Mexico to FTA countries
(145 Bcf/yr equivalent).\14\ The requested non-FTA volume, if approved,
would not be additive to this FTA volume.
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\13\ NFE Altamira FLNG, S. de R.L. de C.V., DOE/FECM Order No.
4960, Docket No. 22-110-LNG, Order Granting Long-Term Authorization
to Export Natural Gas to Mexico and to Other Free Trade Agreement
Nations (Mar. 3, 2023).
\14\ See id. at 4, 15-16.
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According to NFE Altamira, the U.S.-sourced natural gas for which
it has acquired title in the United States would be exported to Mexico
at the United States-Mexico border via the existing border-crossing
facilities of Valley Crossing Pipeline, LLC (Valley Crossing Pipeline),
and potentially, cross-border natural gas pipelines that may be
constructed in the future and that interconnect with the Sur de Texas-
Tuxpan Pipeline offshore natural gas pipeline system in Mexican
waters.\15\ Additionally, NFE Altamira states that it may purchase
U.S.-sourced natural gas in Mexico from upstream suppliers who have
exported the natural gas from the United States (under the supplier's
own FTA export authorization or under this requested authorization),
with NFE Altamira acting as agent.\16\ Once constructed, the Project
would be capable of receiving, processing, and liquefying the U.S.-
sourced natural gas, storing the resulting LNG, and loading the LNG
onto ocean-going LNG vessels for delivery to export destinations.\17\
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\15\ Id. at 1 & n.5, 6.
\16\ Id. at 5-6, 8-9.
\17\ Id. at 5-7.
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For the non-FTA portion of NFE Altamira's request,\18\ DOE
published a notice of the Application in the Federal Register (Notice
of Application) on October 6, 2022.\19\ The Notice of Application
called on interested persons to submit protests, motions to intervene,
notices of intervention, and comments by December 5, 2022.\20\ On
December 5, 2022, Sierra Club filed a Motion to Intervene and Protest,
with accompanying exhibits, opposing the non-FTA portion of NFE
Altamira's Application.\21\ Sierra Club supplemented its filing on
December 9, 2022, with electronic copies of documents that were
hyperlinked in its initial filing. NFE Altamira filed an Answer in
Opposition to Sierra Club's Protest on December 20, 2022.\22\
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\18\ DOE finds that the requirement for public notice of
applications, as well as other hearing-type procedures in 10 CFR
part 590, will apply only to applications seeking to export natural
gas, including LNG, to non-FTA countries.
\19\ See NFE Altamira FLNG, S. de R.L. de C.V.; Application for
Long-Term, Multi-Contract Authorization To Export Domestically
Produced Natural Gas to Mexico and To Re-Export Liquefied Natural
Gas From Mexico to Non-Free Trade Agreement Countries; Notice of
Application, 87 FR 60667 (Oct. 6, 2022) [hereinafter Notice of
App.].
\20\ Id. at 87 FR 60668.
\21\ Sierra Club, Motion to Intervene and Protest of NFE
Altamira FLNG's Request for Export and Re-Export Authorization,
Docket No. 22-110-LNG (Dec. 5, 2022).
\22\ NFE Altamira FLNG, S. de R.L. de C.V., Answer in Opposition
to Protest of Sierra Club, Docket No. 22-110-LNG (Dec. 20, 2022).
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Before reaching a final decision on a non-FTA application under NGA
section 3(a), DOE must also comply with NEPA.\23\ In evaluating
applications for re-export authorization similar to NFE Altamira's
Application, DOE has used recent guidance to inform its environmental
analysis. On January 27, 2021, the President issued Executive Order
(E.O.) No. 14008, Tackling the Climate Crisis at Home and Abroad.\24\
Additionally, on April 20, 2022, the Council on Environmental Quality
(CEQ) issued a final rule for implementing CEQ's NEPA regulations,
including the definition of environmental ``effects.'' \25\ DOE has
determined that, consistent with E.O. 14008 and its obligations under
NEPA, it is appropriate to evaluate the potential environmental
impacts--including the greenhouse gas emissions--of exporting (or re-
exporting) U.S.-sourced LNG from the proposed Project to non-FTA
countries. Therefore, on June 27, 2023, DOE issued a ``Notice of
Environmental Assessment'' announcing that it is undertaking an EA
under NEPA to analyze NFE Altamira's requested exports of U.S.-sourced
natural gas as LNG to non-FTA countries.\26\
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\23\ 42 U.S.C. 4321 et seq.
\24\ E.O. 14008 sets forth policies to address climate change,
specifically to ``organize and deploy the full capacity of [Federal]
agencies to combat the climate crisis.'' Exec. Order No. 14008 of
Jan. 27, 2021, Tackling the Climate Crisis at Home and Abroad, 86 FR
7619 (Feb. 1, 2021), <a href="https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisisat-home-and-abroad">https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisisat-home-and-abroad</a>. E.O.
14008 further requires the ``Federal Government [to] drive
assessment, disclosure, and mitigation of climate pollution and
climate-related risks in every sector'' of the U.S. economy. Id.
\25\ See Council on Envtl. Quality, National Environmental
Policy Act Implementing Regulations Revisions; Final Rule, 87 FR
23453 (Apr. 20, 2022).
\26\ NFE Altamira FLNG, S. De R.L. de C.V., Notice of
Environmental Assessment, Docket No. 22-110-LNG (June 27, 2023).
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The Draft EA examined the potential environmental impacts
associated with unconventional natural gas exploration and production
activities in the lower-48 states; the utilization of the cross-border
pipeline facilities in Texas named in the Application that interconnect
the United States and Mexico and that NFE Altamira may utilize for its
U.S. natural gas supply; descriptions of Mexico's environmental review
process for the construction and operation of liquefaction terminals
and related facilities; marine transport of LNG exported from the
proposed Project; and the global nature of GHG emissions associated
with re-exporting U.S.-sourced natural gas as LNG from Mexico from a
life cycle perspective.
NEPA Process and Public Involvement
DOE prepared the Draft EA in accordance with the CEQ regulations at
Title 40, Code of Federal Regulations, parts 1500-1508 (40 CFR parts
1500-1508) and DOE NEPA implementing procedures at 10 CFR part 1021.
DOE published a Notice of Environmental Assessment to Docket No. 22-
110-LNG on June 27, 2023, announcing its intent to prepare an EA. DOE
is providing opportunities for public review and comments on this Draft
EA (see DATES and ADDRESSES sections of this notice).
Signed in Washington, DC, on September 15, 2023.
Amy Sweeney,
Director, Office of Regulation, Analysis, and Engagement, Office of
Resource Sustainability.
[FR Doc. 2023-20427 Filed 9-20-23; 8:45 am]
BILLING CODE 6450-01-P
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