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Texas LNG submits LNG export application

LNG Industry,

Texas LNG LLC announced at the end of December that it has filed an application to the US Department of Energy (DOE) requesting permission to export up to 2 million tpa of liquefied natural gas (LNG) to FTA (Free Trade Agreement) and non-FTA markets.

This submission follows Texas LNG’s execution of an agreement with the Port of Brownsville in South Texas, to secure a location to develop its LNG export project.

"Our DOE application to export LNG to FTA and non-FTA countries is an important milestone in realising Texas LNG's strategic objective to provide maximum flexibility to our offtake customers," commented Vivek Chandra, CEO of Texas LNG. "We expect to receive FTA export approval by the end of Q1 or beginning of Q2 2014, and non-FTA later in the year. In the meantime, we are progressing our engineering efforts and discussions with investors and LNG buyers."

Texas LNG will employ a toll processing business model under which the customer will pay the company a fee for converting natural gas into LNG.

Port of Brownsville
Texas LNG's 51 acre site is located along the Port of Brownsville's deepwater channel. "The Port of Brownsville is pleased that Texas LNG has selected our Port to develop its innovative LNG export project," stated Port Director and CEO Eduardo A. Campirano. "Texas LNG's project highlights the Port of Brownsville's strategic position, given its close proximity to the massive shale and conventional gas resources in South Texas and its deepwater ship channel which can accommodate most LNG export ships."

"Texas LNG is delighted to develop its LNG export project at the Port of Brownsville, ranked number 1 of the top 25 Foreign Trade Zone Exports in the United States," said Chandra. "The Port of Brownsville's strategic geographic location as one of the closest ports to the Panama Canal will facilitate our efforts to source feed gas from South Texas gas fields such as the Eagle Ford, where large volumes of gas are currently flared and vented, thereby providing both a positive environmental and economic benefit to the region."

Liquefaction barge
The LNG export facility project will include a liquefaction barge to be built offsite by an experienced and qualified shipyard. The barge will be permanently grounded at the Texas LNG site, so that it will no longer be a floating vessel.

"Our unique barge-based liquefaction solution enables Texas LNG to minimise 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," explained 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."

LNG export is expected to commence in early 2018. The company intends to submit 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.

Adapted from press release by Katie Woodward

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