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EPA Finalizes Greenhouse Gas Permit for Magellan Processing; $400M project will add 500 construction jobs, 105 long-term jobs to Corpus Christi economy

Release Date: 12/12/2014
Contact Information: Jennah Durant or Joe Hubbard, [email protected] or 214 665-2200

DALLAS – (Dec. 12, 2014) Today, the U.S. Environmental Protection Agency (EPA) issued a final greenhouse gas (GHG) Prevention of Significant Deterioration (PSD) construction permit to Magellan Processing, L.P. to build a new condensate splitter plant at the company’s existing terminal. The facility is in Nueces County, in Corpus Christi, Texas.

“Corpus Christi’s economy is well-placed to take advantage of today’s diverse energy market,” said Regional Administrator Ron Curry. “EPA has worked hard to ensure companies like Magellan have the permits they need to get to work on these important projects.”

Magellan will construct a 100,000-barrels per day natural gas condensate splitter at the Corpus Christi facility. The project includes two natural gas-fired hot oil heaters, two natural gas-fired fractionator heaters, storage tanks, and other associated equipment. The company estimates capital costs for the project at around $400-450 million. The project will create around 500 construction jobs and 105 long-term jobs.

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.

Since Jan. 2, 2011, projects in Texas that 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 61 permits being issued by EPA.

On Oct. 31, 2014, EPA announced both its approval of the state air plan and the withdrawal of the federal air plan making the Texas Commission on Environmental Quality (TCEQ) the primary GHG permitting authority in Texas. The approval became effective upon publication in the Federal Register on Nov. 10. This action eliminates the need for businesses to seek air permits from two separate regulatory agencies in Texas and moves the permitting program to TCEQ.

EPA and TCEQ will continue to work closely with pending permit applicants during the transition period and ensure no unnecessary project delays result from this action. At the request of businesses in Texas, EPA will complete work on three permit applications and the remaining 18 applications have been transferred to TCEQ.

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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