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HomeMy WebLinkAbout030068 RES - 01/28/2014RESOLUTION Supporting the exportation of liquefied natural gas from the Coastal Bend and supporting Cheniere Energy's permit application with the Federal Energy Regulatory Commission and the Department of Energy for the Corpus Christi LNG Liquefaction facility at the LaQuinta Channel. Whereas, plentiful natural gas supplies and unprecedented advances in technology provide a historic opportunity for the United States to achieve energy self - sufficiency while creating jobs and wealth for our economy; and Whereas, oil and gas exploration and production in the Coastal Bend in 2012 created $61 billion in economic impacts, supported 116,000 jobs, and generated more than $1 billion in local government revenue for the 20- county region of South Texas, according to the University of Texas —San Antonio's Institute for Economic Development; and Whereas, oil and gas development in the Coastal Bend is projected to generate $89 billion in economic activity and support 127,000 jobs for the 20- county region by 2022, according to the University of Texas -San Antonio's Institute for Economic Development; and Whereas, expanding exports of liquefied natural gas (LNG) is a key component to helping the United States realize its potential as a global energy leader while creating hundreds of thousands of jobs and strengthening the U.S. economy; and Whereas, Corpus Christi Liquefaction, LLC, a subsidiary of Cheniere Energy, is developing a liquefied natural gas (LNG) export terminal on the northeast side of Corpus Christi Bay on the LaQuinta Ship Channel in San Patricio County within the City of Corpus Christi's extraterritorial jurisdiction at one of Cheniere's existing sites that was previously permitted for a regasification terminal; and Whereas, Cheniere Energy plans to invest approximately $11 billion to construct a 2.1 billion cubic feet per day LNG liquefaction facility and is estimated to employ 3,000 workers on the site for five years during construction; and Whereas, the Corpus Christi Liquefaction facility will permanently employ over 200 people in the Coastal Bend, and operations over the long -term are projected by the Perryman Group to support approximately 2,100 local jobs and contribute $240 million in economic activity to the region each year; and Whereas, steady demand created by LNG exports from Corpus Christi Liquefaction would, according to the Perryman Group, support stable long -term investment, employment and royalty collection by the Texas oil and gas industry for over 25 years, creating $4 billion per year in economic activity, supporting over 45,000 jobs in the Texas oil and gas sector, and generating over $5 billion in cumulative tax benefits to the State of Texas; and Whereas, expanding markets for U.S. natural gas is consistent with U.S. trade and national security interests; and Page 1 of 3 .30968 INDEXED Whereas, Cheniere signed a 20 -year LNG sale and purchase agreement with Pertamina for 0.8 mtpa (90 mmcfd); and Whereas, Cheniere Energy designed the LNG terminal and pipeline to meet or exceed U.S. federal codes and standards; and Whereas, Cheniere was named by the Coastal Bend Bays Foundation as the Corporation of the Year in 2013 for making efforts to restore the Coastal Bend's marsh environment and coastline by working closely with the State of Texas and the U.S. Army Corps of Engineers to utilize dredging materials to restore Causeway Island and rock abatements to protect Shamrock Island, both essential rookeries. THEREFORE, BE IT RESOLVED THAT the City of Corpus Christi hereby expresses its support for exports of liquefied natural gas due to the positive economic impact those exports will have on the Coastal Bend area; and BE IT FURTHER RESOLVED THAT this resolution be forwarded to the Federal Energy Regulatory Commission and the Department of Energy to encourage those agencies to streamline and expedite permit approval of the Corpus Christi LNG Liquefaction facility so that the economic benefits of LNG exports can be realized throughout the region and the country. PASSED AND ADOPTED this APPROVED this day of �� k- day of This resolution takes effect upon City Council approval on this the 2014. ATTEST: I4414-Z■ Rebecca Huerta City Secretary Corpus Christi, Texas ,20 . ZC1 -f -t-.- U day of January, THE CITY 0 CORPUS CHRISTI M- Tom, Ne a Martinez Mayor Corpus Christi, Texas The above resolution was passed by the following vote: Nelda Martinez Kelley Allen Rudy Garza Priscilla Leal David Loeb Page 2 of 3 0300138 Chad Magill Colleen McIntyre Lillian Riojas Mark Scott Page 3of3 030068