Texas LNG executes term sheets with Asian buyers
Published by David Rowlands,
Editor
LNG Industry,
The buyers include a number of state-owned and private entities that either own or are planning to build LNG receiving facilities in the coming years. Option rights in the term sheets could increase these offtake volumes to approximately 4 million tpy. Texas LNG is now oversubscribed for its Phase 1 capacity of 2 million tpy (consisting of one APCI LNG train) – a key requisite for a positive final investment decision (FID).
The term sheets also provide the commercial foundation for Texas LNG to continue negotiating definitive 20-year LTAs and SPAs. Under the terms of the LTAs, Texas LNG will be paid monthly fees to liquefy natural gas, store it, and then deliver it to LNG vessels arranged by the LNG purchaser. The company is also promoting an SPA structure, in which it is responsible for delivering LNG on an FOB or DES basis, thereby providing maximum flexibility to the LNG buyer.
The Founder and CEO of Texas LNG, Vivek Chandra, said: “Despite a very challenging global environment, Texas LNG has demonstrated that its realistic size, ideal location, focus on low costs, and transparency have attracted LNG buyers. Buyers realise the value of procuring LNG directly from the producing source, rather than via intermediaries or portfolio players. Texas LNG is proud to offer a reliable and credible solution for these customers.”
The Founder and COO of Texas LNG, Langtry Meyer, added: “Texas LNG is riding the crest of the second wave of US LNG exports. Texas LNG’s smaller size helped secure customers for Phase 1 capacity, which is sufficient to reach FID in 2018. With Phase 1 volumes oversubscribed, Texas LNG is marketing its Phase 2 capacity (a second identical 2 million tpy train), and is confident that it will close out the full 4 million tpy production capacity, for which Texas LNG currently is seeking authorisations from the US Federal Energy Regulatory Commission and the US Department of Energy.”
Read the article online at: https://www.lngindustry.com/liquefaction/11012017/texas-lng-executes-term-sheets-with-asian-buyers/
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