Last Modified: Thursday, March 13, 2014 11:28 AM
Officials from G2X Energy are in the process of developing a report for the Coast Guard that will outline the company’s proposed barging activities along the Industrial Canal.
Steve Hirsh, G2X’s vice president and head of project development, told the Harbor Safety Committee this week that the company is developing its water suitability assessment. Hirsh said G2X officials hope to get their WSA’s final draft to the Coast Guard by the end of the month.
“All we’re planning to do is barge traffic for both liquid propane gas and gasoline,” Hirsh said. “We don’t intend on bringing in any ships, maybe a couple during construction with some heavy equipment. But predominately it will be barge traffic.”
Hirsh added that since G2X will neither produce nor ship LNG their project does not require approval from the Federal Energy Regulatory Commission.
Lt. Will Fediw, energy project officer for the Coast Guard’s Lake Charles office, said G2X must go through the WSA process because its barges will be carrying LPG. A WSA is a navigation safety and security assessment that companies compile and present to the Coast Guard for review.
Once Coast Guard officials have reviewed G2X's WSA, they will send their letter of recommendation on the project to the state's Department of Environmental Quality.
G2X’s proposed $1.5 billion facility will convert natural gas into methanol, which will then be refined into LPG and 87-octane, zero-sulfur gasoline. The facility, which is slated for construction on Tank Farm Road along the Industrial Canal, will produce about 12,500 barrels of these fuels each day, officials said. After production, the fuel will be barged to blenders and refineries in Lake Charles, Houston, Beaumont and Baton Rouge.
G2X officials have already filed air permits with the state’s Department of Environmental Quality and the Environmental Protection Agency. The company has also applied for a permit from the U.S. Army Corps of Engineers to build two docks along the Industrial Canal. All of G2X’s permit applications are still pending with their respective agencies.
Hirsh said G2X hopes to begin construction on the facility by the end of the year.
“We’re going to be sending our gasoline and LPG to refineries and blenders up here in Lake Charles and down into Houston and as far out as Baton Rouge, wherever the demand may be,” he said.
“It’s not our intent to go out through the ship channel; it’s really just to go to the closest customers who want to buy our zero-sulfur gasoline.”
Hirsh said G2X expects to barge one to two units of gasoline each week and zero to one unit of LPG every couple of weeks.