Texas
New Gas Storage Facility Arrives Just In Time For The Texas Grid
HOUSTON, TEXAS – DECEMBER 14: Pablo Vegas, president and CEO of ERCOT, left, Texas Governor Greg … [+]
As a major sub-freezing arctic weather system makes its way down to Texas in the coming days, concerns are rising again about the ability of the state’s power grid, managed by the Electric Reliability Council of Texas (ERCOT), and natural gas delivery systems to handle the load. But with many citizens worried about the ability of ERCOT to avoid blackouts as forecasts predict the entire state to see sub-freezing temperatures for several days next week, CEO Pablo Vegas said generation capacity won’t be a problem.
“The power is not going to go out because we don’t have enough supply to meet demand for this week. We’ve got plenty of power for the demand and for the cold weather that’s coming. So, the grid’s gonna be running stably,” Vegas told Dallas/Fort Worth ABC affiliate WFAA Tuesday.
While local service interruptions such as downed power lines are always a possibility during major weather events, Vegas’s high level of confidence stems from grid reforms implemented in the wake of 2021’s deadly Winter Storm Uri, and from the large amount of generation capacity that has been added to the grid since that time.
New Gas Storage Arrives Just In Time
Most of that added capacity is intermittent, weather dependent solar power, a small percentage of which is backed up with stationary batteries, which will help keep homes heated during daylight hours. But additional natural gas baseload generation has also come online in recent years, and weatherization and other improvements mandated by the legislature and regulators should serve to prevent the kinds of system freeze-ups that took place during Uri.
For the first time in several years, a major new greenfield natural gas storage facility is also coming online in Texas, just in time to help provide stability and flexibility to the gas distribution system for the coming storm. On Thursday, Trinity Gas Storage announced commencement of operations at its 24 bcf (billion cubic feet) storage unit located near Carthage in East Texas, about 160 miles southeast of Dallas.
Because it is connected into an array of gas transmission lines and local distribution networks, the Trinity facility is able to help manage storage and direct gas flows not just into the Dallas/Fort Worth Metroplex and East Texas, but also to markets and power plants in and around Houston and Austin.
In an interview on Wednesday, I asked Trinity Gas Storage CEO Jim Goetz about the reasons why gas storage capacity has lagged the rapid growth of gas demand and pipeline capacity in Texas. “I think it boils down to two factors,” he says, “First, there’s the geological kind of requirements that have to be met. It’s not like we can just say, hey, this is a good spot for storage. You need either a depleted reservoir or a salt dome that’s conducive for the task.”
The second factor Goetz mentions is one that has been a common theme for oil and gas-related projects in recent years: A lack of access to capital in a world that for several years became dominated by the ESG philosophy. “That ESG movement drove folks, particularly the capital providers, away from hydrocarbon activity,” Goetz says, adding that things have changed over the past year. The result is that five private equity groups, with Transition Equity Partners, LLC in the lead sponsor role, are backing the project.
Complaints and horror stories about permitting delays have permeated the U.S. energy space in recent years, but such delays are not a part of the story for this specific facility. Trinity was able to get the project fully permitted very quickly, in large part because it was not required to deal with the federal government. Goetz speaks highly of the Texas Railroad Commission, whose employees worked diligently to ensure timely processing of the permits once all requirements and notifications were met.
“We operate under Rule 96 under the Texas Railroad Commission,” Goetz says. “From the time we submitted our application through full approval took around five months. We had full blown disclosures to all the relevant parties. There was no shortcutting of the principled things that must be done to make sure that all the affected parties are noticed and have the ability to weigh in. But you still can get it done in a very timely fashion.”
Plans for Future Gas Storage Expansion
Goetz says Trinity is already working on plans for future expansion. Noting that the underground formation being accessed is capable of holding and managing up to 50 bcf of gas, Goetz says he didn’t feel comfortable trying to raise the capital for a project that size given past market conditions, a factor he now says is “ironic” with the benefit of hindsight.
But the conditions have obviously changed now, resulting in the happy fact that, “we now have oversupply. We have more interested customers than we do have capacity to serve them. So, we’ve already laid out plans for phase two.”
Since 2010, data compiled by the U.S. Energy Information Administration shows that natural gas demand has risen by 60% and gas pipeline capacity has grown by about 30% during the same period. By comparison, storage capacity grew by just 8%.
Big energy data and analytics firm Enverus Intelligence Research recently projected that the U.S. is about to experience a significant boom in the construction of new natural gas power plants to meet rapidly rising power demand. This means a corresponding expansion of gas storage capacity will also need to take place, not just in Texas, but across the country. The business case for doubling capacity at the Trinity facility seems obvious.
The Bottom Line
The story of American energy growth has always been a story built in large part just in time delivery, and this is a good example. With capital markets now following the industry trend of the last two years of re-prioritizing energy security requirements over virtue signaling about ESG, it appears that market conditions are realigning just in time to help facilitate that expansion. Readers can expect to see more stories like this one about Trinity Gas Storage in the months and years to come.
Texas
Texas needs at least $174 billion to avoid water crisis, state says
AUSTIN (Texas Tribune) — Texas communities will need to spend $174 billion in the next 50 years to avert a severe water crisis, a new state analysis revealed Thursday. That’s more than double the $80 billion projected four years ago, when the Texas Water Development Board last passed a state water plan.
The three-member board presiding over the agency authorized the highly anticipated draft blueprint Thursday, the first administrative step toward adopting the water development board’s plans for the next 50 years. The plan, released every five years, encompasses the projects that 16 regional water planning groups in Texas said are the most urgent, water development board officials said.
The board’s latest estimates come as the state’s water supply faces numerous threats. Growing communities across Texas are scrambling to secure water, keep up with construction costs and cope with a yearslong drought. This week, Corpus Christi officials said the city may be just months away from declaring a water emergency. Meanwhile, other rural cities by the Coastal Bend are rapidly drilling wells to avoid a crisis. Residents in North Texas have also been bracing for groundwater shortages.
In an effort to restrain the crisis, lawmakers last year called an election in which voters approved a $20 billion boost for communities to use on water-related expenses. The water development board’s estimate shows that what lawmakers proposed on the ballot falls dramatically short of the needed cash, experts said.
“What this number tells me at the end of the day is if we don’t get serious about (funding water projects), there are going to be serious consequences for Texas,” said Perry Fowler, executive director of the Texas Water Infrastructure Network. “Even with the billion-dollar-a-year plan kicking in, it’s not going to be enough to offset the costs of the projects that are going to have to be executed.”
The new estimate accounts for 3,000 projects, from regional infrastructure upgrades to smaller endeavors such as drilling new water wells. Texas’ water supplies are expected to drop by roughly 10% between 2030 and 2080, according to the water plan. In that same time frame, the maximum amount of water communities can draw is also expected to decline by 9%.
The 80-page plan notes approximately 6,700 recommended strategies that would add water to the state’s dwindling portfolio. The recommendations — which are not accounted for in the cost — include developing new supplies from aquifer storage and recovery, brackish groundwater, desalination and recycled water. It also calls for water conservation.
The report suggested that if Texas does not implement the plans and recommendations, the state is one severe drought away from an estimated $91 billion in economic damages in 2030.
The state’s plan attributes a variety of reasons for the bigger price tag, such as higher costs of construction due to inflation, impacts of the COVID-19 pandemic on supply chains, and a growing backlog of water supply projects.
“There’s a plan that can meet our needs,” said Matt Nelson, deputy executive administrator for the Office of Planning at the water development board, adding that they take their cues from the regional planning groups. “These are local projects that folks need to implement; they’re needed regardless of how they’re funded. It’s important to remember these are not top-down projects or state projects.”
Experts told The Texas Tribune that the board’s estimate is only a fraction of what Texas communities will need to ensure they have water in 50 years’ time, saying growth and development are outpacing the state’s ability to keep up.
“This is a bigger water plan in terms of volume strategies and capital costs compared to anything we’ve ever seen before,” said Jeremy Mazur, the director of infrastructure and natural resources policy at think tank Texas 2036.
Mazur suggested that the $174 billion only covers water supply projects and does not account for updating aging infrastructure, adding that the actual price could amount to a quarter of a trillion dollars.
“There’s a substantial magnitude with regard to the capital investment needed to both fix our aging and current systems and potentially develop the water infrastructure, water supply projects that we need.“
The report largely confirmed what many water experts have warned regarding threats to the state’s water supply, said Sarah Kirkle, director of policy at the Texas Water Association.
“Population growth, extreme weather, and economic development needs are all increasing demands on our infrastructure, and the state is going to need more water, sooner,” Kirkle said. “This is all while water projects are becoming more costly and complex because the easiest and cheapest local projects have already been developed.”
Fowler, with the infrastructure network, said he expects the Texas Legislature to take up the issue next year, when lawmakers meet for the 90th legislative session. He said the state should take a bigger role in ensuring that communities can afford their respective water projects.
“It’s going to have to be a top-down priority, there’s no way around it,” he said. “The challenges are so immense that it’s going to take all hands on deck.”
Texas residents have until the end of May to comment on the proposal. Water development board officials must adopt it by January 2027.
Alejandra Martinez contributed to this story.
This article originally appeared in The Texas Tribune at www.texastribune.org. The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans – and engages with them – about public policy, politics, government and statewide issues.
Texas
Co‑worker confesses to killing missing North Texas man and stealing his car, police say
A North Texas man reported missing earlier this week was found dead Friday, and police say a co‑worker has confessed to fatally shooting him and stealing his car.
The suspect, Gregory D. Lewis, 34, remains in custody and faces a forthcoming capital murder charge, according to the Fort Worth Police Department.
Lewis is accused of killing 31‑year‑old Thomas King, who had been last seen in his Taco Casa work uniform. King was reported missing on Tuesday after failing to return home Monday from the fast‑food restaurant in the 1100 block of Bridgewood Drive.
Car found at Arlington motel
Police said King’s car was found at the Quality Inn on I‑20 in Arlington, and surveillance video showed Lewis arriving in King’s vehicle shortly after King left work.
Detectives identified the man in the video and arrested him on unrelated charges.
Body discovered on Fort Worth’s East Side
King’s body was located on Friday in an open field on Fort Worth’s East Side, authorities said.
According to police, Lewis confessed to shooting the victim and stealing his car.
Medical examiner review pending
The Tarrant County Medical Examiner will determine the cause of death.
CBS News Texas has reached out to Taco Casa for comment.
Texas
Exclusive | Mexican mayor urged relatives in US to vote for Texas Dem for Congress who would ‘take care’ of their city
WASHINGTON — A Mexican mayor earlier this month urged her constituents to get their relatives in Texas to vote for House Democratic candidate Bobby Pulido because he would “take care” of their city if elected to Congress.
“We need to get out the vote for him,” said Patricia Frinee Cantú Garza, mayor of General Bravo in Nuevo León, less than two hours from the US border, in a recent Spanish-speaking Facebook reel,which The Post reviewed and translated.
“Talk to your families in the United States. Make sure they go vote,” Garza added, noting that she would be presenting the keys to the city to Pulido, a two-time Latin Grammy winner, on April 3.
“When he becomes a congressman,” she also said, “we want him to take care of Bravo.”
The city ceremony celebrating Pulido in General Bravo never received enough funding and was cancelled, the Mexican outlet El Norte reported.
Pulido has headlined concerts in General Bravo as recently as November 2023. Local officials promoted the show and the current mayor and her husband, then-mayor Edgar Cantu Fernandez, appeared.
“Bobby doesn’t know the mayor and has never met her,” a Pulido campaign spokesperson said in a statement. “He declined the invitation, didn’t attend the event, and isn’t responsible for unsolicited comments made by other people.”
Bradley Smith, a former chairman of the Federal Election Commission, said the statements wouldn’t pose legal or ethical issues for Pulido — but that the remarks may have a political cost, given the focus on foreign involvement in US elections in recent years.
“If you were making financial contributions, that would be a different thing, but just to exhort people to vote,” Smith said, “I don’t think that’s going to be a problem for them.”
Jessica Furst Johnson, a partner at the Republican-aligned campaign finance and election law firm Lex Politica, noted that event appeared to function as an in-kind contribution to Pulido’s campaign but it would be difficult to determine without “more details.”
Congressional Republicans have thus far failed to pass a bill this session aimed at beefing up identification requirements for voters when registering, though many have said laws as currently written are too lax and could lead to non-citizens casting ballots.
State investigations and audits have shown in recent years that thousands of non-citizens ended up being registered, but few have ever illegally voted. Those who have are federally prosecuted.
Pulido is challenging incumbent GOP Rep. Monica De La Cruz in the Texas district this November and has faced questions from the press about his ties to Mexico, where he has said he maintains a home for parts of the year.
The Latino music star admitted to splitting time with his family between there and Texas just two years before launching his campaign, telling a YouTube show in a 2023 interview that he’s a “summer Mexican” but “winter Texan.”
“We live on the border,” he has also said. “My wife and I have a house in Mexico. So, we travel there, and we spend time over there.”
There was no indication of a current mortgage on a property either there or in the US, according to financial disclosures that Pulido filed April 15 with the House. Those filings also revealed he holds a checking account at a Mexican bank.
“Bobby lives in his family home in Edinburg, Texas, where he was born, raised, and is raising his own family,” the Pulido campaign rep noted. “He is in complete compliance with all House disclosure rules — the property you are referencing is not his primary residence so is not required to be listed.”
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