Liquefied natural gas company exploring
The Port of Galveston agreed Monday to set aside 185 acres on Pelican Island for a liquefied natural gas company exploring whether to build an export plant there.
Trustees signed an “option to lease” agreement for the property with a subsidiary of Woodlands-based NextDecade, a privately owned company planning to build a $6 billion liquefaction plant on the small island north of Galveston, said Port Director Michael Mierzwa said.
Under the agreement, NextDecade will pay the port $100,000 to hold the land for six months while the company conducts environmental feasibility studies and starts the process to apply for the necessary federal permits required for such projects.
“Basically, this agreement holds the property for them while they determine whether they want to use it,” Mierzwa said.
The company has the option to pay $200,000 to extend the agreement six more months and $675,000 for two years beyond that, Mierzwa said. Any long-term lease would have to be approved by the wharves board, he said.
NextDecade CEO Kathleen Eisbrenner has said Pelican Island is a prime location because of its proximity to the Houston Ship Channel and nearby pipeline infrastructure. She said the company is in the “final stages” of securing financing for the project, which is expected to have a capacity of 6 million tons per year, enough to fill about five tankers per month.