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EPA Finalizes Greenhouse Gas Permit for Carbon Capture Facility; Facility will bring nearly $300 million in capital investments and increase natural gas processing

Release Date: 11/25/2014
Contact Information: Joe Hubbard or Jennah Durant at 214-665-2200 or [email protected]

DALLAS – (Nov. 25, 2014) The U.S. Environmental Protection Agency (EPA) has issued a final greenhouse gas (GHG) Prevention of Significant Deterioration (PSD) construction permit to Nuevo Midstream, L.L.C., to build three gas processing plants. The facility is located Orla, Texas about 100 miles west of Odessa.

“This facility will help increase processing of natural gas in Texas and New Mexico,” said EPA Regional Administrator Ron Curry. “The facility is an example of how providers can meet customer demand while reducing harmful greenhouse gas emissions.”

The project will involve the expansion of three cryogenic plants and two 1,000-gpm amine plants. It is also the first GHG PSD construction permit in Texas for carbon capture sequestration. The project also plans to sell greenhouse gases for oil recovery operations. The project can emit up to 568,067 tons of CO2 annually. The additions will bring almost $300 million in capital investments for the local area.

In June 2010, EPA finalized national GHG regulations, which specify that beginning on Jan. 2, 2011, projects that substantially increase GHG emissions require an air permit.

EPA believes states are best equipped to run GHG air permitting programs. EPA will continue to work closely with applicants who have pending permits retained by EPA at their request. This action will increase efficiency and allow industry to continue to grow in Texas.

Since January 2, 2011, projects in Texas that substantially increase GHG emissions required an air permit from the EPA. In Texas alone, EPA has received 86 GHG permit applications from businesses since 2011. Texas is No. 1 in the country for receiving EPA-issued GHG permits – with over 59 permits being issued by EPA. Of the 192 GHG permits issued nationwide, EPA has completed 64 and the states have issued 129 permits.

For all of the latest information on GHG permits in Texas please visit: https://yosemite.epa.gov/r6/Apermit.nsf/AirP

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