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Texas LNG Project Advances With Authorization, Agreements

Texas LNG LLC has received U.S. Department of Energy (DOE) free trade agreement (FTA) export authorization for its planned Brownsville, TX, natural gas liquefaction and export terminal.

Texas LNG was approved to export -- on its own behalf or for others -- up to the equivalent of 100 Bcf per year of liquefied natural gas (LNG), which is about 2 million tons per year, for a term of 25 years. The terminal is being developed on a 100-acre site with deepwater frontage to the Port of Brownsville shipping channel. The company also is seeking non-FTA export authorization (see Daily GPI, Jan. 8).

Texas LNG also made an agreement with Samsung Engineering Co. Ltd. for front end engineering design (FEED) services for the project. FEED is expected to be completed during the second half of 2015. Samsung Engineering and Texas LNG have also begun to evaluate LNG liquefaction technologies. Samsung Engineering is to become a minority equity interest owner in the project.

The company recently signed a feed gas supply cooperation agreement with a "top 10" U.S. gas marketer to provide project offtakers an option for "flexible and competitive integrated gas supply and natural gas management services" to deliver gas to the project.

Discussions are ongoing with potential equity investors and LNG consumers in anticipation of first LNG deliveries in late 2018, the Houston-based company said. It intends to source a portion of its feed gas from currently flared/vented supplies.

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