Texas LNG Signs LNG Agreement with Asian Buyers
Houston based independent LNG company Texas LNG Brownsville has signed detailed non-binding agreements with four LNG buyers in southeast Asia and China for a volume of 3.1mn tn/yr which can go up to 4mn mt/yr.
Although the company did not name the buyers, in a statement issued January 10, it said they were a mix of state-owned and private entities that currently own, or plan to construct, LNG receiving facilities in the next few years.
Texas LNG is now oversubscribed for its phase 1 capacity of 2mn mt/yr, a key requisite for the final investment decision (FID). The company believes the agreements would provide “the commercial foundation for Texas LNG to continue negotiating definitive 20-year LTAs and SPAs.”
Under the terms of the agreement, Texas LNG will be paid monthly capacity fees to liquefy natural gas, store it, and deliver it on to LNG ships arranged by the buyer.
“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 2mn mt/yr train), and is confident that it will close out the full 4mn mt/yr production capacity, for which Texas LNG currently is seeking authorisations from the US Federal Energy Regulatory Commission and the US Department of Energy,” Langtry Meyer, founder & COO of Texas LNG said.
Texas LNG’s initial project will be constructed at the Port of Brownsville in South Texas. The 625-acre site is strategically located on the north shore of the Port of Brownsville's deepwater ship channel, close to natural gas supplies. Phase 1 production of 2mn mt/yr of LNG for export to FTA and non-FTA markets is expected to commence in 2021-22.