[Federal Register Volume 88, Number 182 (Thursday, September 21, 2023)]
[Notices]
[Pages 65160-65161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 
[email protected] or phone at (202) 586-2459.
    Electronic Filing by email (Strongly encouraged): 
[email protected].
    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: https://www.energy.gov/sites/default/files/2023-09/NFE%20Altamira%20FLNG_Draft%20Environmental%20Assessment%20-Final%209.15.23.pdf.

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, [email protected].

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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[[Page 65161]]

    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), https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisisat-home-and-abroad. 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]
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