Texas LNG makes progress

This latest approval is an important component of the regulatory process necessary to develop Texas LNG’s project on its 110-acre site with deepwater frontage to the Port of Brownsville shipping channel.

Under the DOE’s order, Texas LNG will export on its own behalf and as agent for others, up to the equivalent of around two million tonnes per annum (MTA) of LNG. The authorisation is for a term of 25 years.

“LNG exports will play an important role in the continued development of the US gas industry and our Texas LNG project will provide valuable employment and other economic benefits to Brownsville and the Rio Grande Valley region,” said Vivek Chandra, CEO, Texas LNG.

The company has also entered in to an agreement with Samsung Engineering Co Ltd, which will provide Pre-Front End Engineering Design (Pre-FEED) and Front End Engineering Design (FEED) services for the project.

Samsung plans to complete FEED in the second half of 2015, and as a strategic commitment, will become a minority equity interest owner in the project.

“Samsung Engineering has an enviable reputation for delivering mega projects on a ‘safety first’ basis, within strict cost control parameters. Its relationship with major Korean LNG offtakers and financial institutions is also a big plus, especially since Korea is the second largest consumer of LNG in the world. Furthermore, Korea has an FTA with the United States,” added Langtry Meyer, chief operating officer, Texas LNG.

Texas LNG also recently signed a Feed Gas Supply Cooperation Agreement with a top-ten US gas marketer. It will provide Texas LNG offtakers an option for flexible and competitive integrated gas supply and natural gas management services to deliver natural gas to the project.

Discussion are ongoing with potential equity investors and LNG consumers in anticipation of the first LND deliveries in late 2018.