HOUSTON, March 12 (Reuters) -
Top U.S. liquefied natural gas producer Cheniere
plans on using electricity from the Texas grid at some of its
LNG facilities to reduce emissions, Robert Fee, the company's
senior vice president of international affairs and climate, said
on Wednesday.
Fee, speaking at the CERAWeek energy conference in Houston,
added that the company was aware that doing so risks reducing
reliability of its operations by placing facilities at the mercy
of the grid.
Combined cycle gas turbines tend to be used in LNG plants to
ensure there is sufficient reliable power. But using them can
lead to higher facility emissions of greenhouse gases and other
pollutants.
Reducing emissions from the LNG supply chain is
important to the industry in part because big markets like the
European Union are implementing emissions standards for their
imports.
"Our Stage 3 facility is going to be electric-driven," said
Fee, referring to its expansion project at the Corpus Christi
terminal in Texas.
Cheniere produced the first LNG at the 10 million metric
tonnes per annum (MTPA) Stage 3 plant in December, but the
facility remains under construction.
Cheniere has
struggled to meet
federal emissions limits for hazardous emissions from its
existing gas-driven turbines at the Corpus Christi LNG terminal
in the past, according to Reuters reporting.
Cheniere rival Freeport LNG, in contrast, operates a
terminal in Texas that is totally electric-driven, but the
second-largest U.S. LNG facility has been
offline
more any other plant in the country, according to LSEG
data.
Cheniere's Fee said the company was confident that it
could rely on the Texas grid to run the Stage 3 project.
He, however, added that the use of electric grids will
not necessarily reduce the overall carbon footprint of LNG
unless the electricity was generated from low-carbon sources.
The U.S. is the world's largest exporter of LNG and
production of superchilled gas from Cheniere's Stage 3 and
Venture Global's Plaquemines plants
is expected to keep the U.S. as the top exporter of LNG in
2025.