LNG projects get environmental OK; investment firm fined; tax deal for Annova
Victories for LNG projects
Building the $9.6 billion Rio Grande LNG export terminal at the Port of Brownsville and a related natural gas pipeline across most of South Texas will not jeopardize the continued survival of the endangered ocelot and jaguarundi, a new and disputed report from the Fish & Wildlife Service says. In a biological opinion, the federal agency sided with Houston liquefied natural gas company NextDecade against a coalition of shrimpers, fishermen, environmentalists, neighbors and communities.
Linn Energy successor sold
A successor company to Linn Energy, which imploded into one of the most spectacular bankruptcies of the last oil bust, was sold for $230 million to Citizen Energy of Tulsa. Roan Resources, one of three companies that emerged out of Linn’s bankruptcy, was valued at $1.52 a share, a more than 90 percent decline from Roan’s initial value in 2018. The total, allcash deal is valued at about $1 billion, including the assumption of Roan’s $780 million debt.
CFTC fines Houston firm
A Houston energy investment firm was fined $1.5 million by the U.S. Commodity Futures Trading Commission for trading against its own customers. Classic Energy LLC, which has offices in Houston’s West End neighborhood, is alleged to have taken large orders for natural gas futures from customers and then turned around and bought opposing financial positions, earning profits of more than $400,000. Classic Energy did not respond to a request for comment.
Annova wins tax break
Cameron County commissioners voted to approve a tax abatement deal worth tens of millions of dollars for Houston liquefied natural gas company Annova LNG to build an export terminal at the Port of Brownsville. Under the 10-year tax deal, Annova LNG will make a one-time payment of $5.5 million for community projects as well as 10 annual payments of $500,000 to the county in lieu of taxes. The deal holds as long at the company employs more than 100 people and ensures that at least 35 of them of them are local hires.
Wind farms proposed offshore
Subsidiaries of Royal Dutch Shell and the Portuguese wind energy company EDP teamed up to submit bids to state officials in Connecticut to develop and build an offshore wind farm about 20 miles south of Martha’s Vineyard off the coast of Massachusetts. One proposal includes a 408-megawatt wind project and the other is a 804-megawatt wind farm. Both would deliver wind for a 20-year period, according to the proposals.
Carbon emissions expected to rise
Global carbon dioxide emissions will rise through 2050, as developing nations look to fossil fuels to expand access to energy among their populations, the U.S. Energy Information Administration said Monday. The predicted 0.6 percent annual increase in emissions comes as scientists warn greenhouse gas emissions must be reduced to net-zero by 2050 if the planet is to avoid the worst consequences of climate change.
Evangelicals as climate activists
A growing body of evangelical leaders is ramping up pressure on Republican lawmakers to reduce U.S. greenhouse gas emissions, breaking from some within their faith’s long skepticism of climate change. At a time when American business and military leaders are becoming increasingly vocal on the urgent need to reduce U.S. reliance on fossil fuels, the evangelical campaign threatens to alienate Republican lawmakers from another core constituency.