Texas LNG Makes Strides on US LNG Export Project
Texas LNG LLC says it has as filed an application to the United States Department of Energy (DOE) seeking authorization to export up to 2 MTA (million tonnes per annum) of Liquefied Natural Gas (LNG) to FTA (Free Trade Agreement) and non-FTA markets following the execution of its exclusive lease option agreement with the Port of Brownsville in South Texas, USA.
The company explains it will employ a toll processing business model whereby the LNG customer will pay Texas LNG a fee for converting natural gas into LNG at the 51 acre site located along the Port of Brownsville's deepwater channel which provides an optimal location to develop an LNG export facility.
Texas LNG's pioneering export facility concept involves a liquefaction barge to be fabricated offsite by an experienced and qualified shipyard. At the Texas LNG site, the barge will be permanently "grounded" so that it will no longer be a floating vessel.
"Our unique barge-based liquefaction solution enables Texas LNG to minimize complex onshore civil construction works, reduce the need to construct large LNG tanks onsite, reduce the overall local environmental and labor impact, and expedite speed to market," said Mr. Chandra. "We are in discussions with shipyards and EPC contractors to design and construct the liquefaction barge and associated onshore facilities. We have also received favorable indications from both potential natural gas buyers and producers interested in committing supply."
Texas LNG anticipates that LNG export could commence in early 2018 given its smaller scale and footprint, lower Capex requirements, and speed to market strategy. The Company plans to make a request to the Federal Energy Regulatory Commission (FERC) to begin the pre-filing process by the end of 2014. Commencement of construction is subject to regulatory approvals and a final investment decision (FID) contingent upon Texas LNG obtaining satisfactory construction contracts and long-term customer contracts sufficient to underpin financing of the project.
About Texas LNG
Texas LNG LLC is an independent Houston-based energy company engaged in LNG related businesses with presence in Asia-Pacific (Australia and China) and Middle East (Dubai, UAE).
Additional information about Texas LNG may be found on its web site at www.txlng.com