Innovative Mid-Sized US LNG Export Project Focused on Delivering Flexible
Supply Terms to Asian Markets Makes Significant Progress
Texas LNG LLC Submits DOE Application to Export LNG to FTA & non-FTA Countries
and Secures Exclusive Option to Lease Site at Port of Brownsville, Texas, USA
Houston, Texas, Jan. 7, 2014 (GLOBE NEWSWIRE) -- Texas LNG LLC ("Texas LNG",
www.txlng.com) announced that on December 31 2013, it has filed an application
to the United States Department of Energy (DOE) seeking authorization to
export up to 2 MTA (million tonnes per annum) of Liquefied Natural Gas (LNG)
to FTA (Free Trade Agreement) and non-FTA markets. This key achievement
follows Texas LNG's execution of an exclusive lease option agreement in
December 2013 with the Port of Brownsville in South Texas, USA to secure a
prime location to develop its innovative export project.
"Our DOE application to export LNG to FTA and non-FTA countries is an
important milestone in realizing Texas LNG's strategic objective to provide
maximum flexibility to our offtake customers," remarked 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
Texas LNG will employ a toll processing business model whereby the LNG
customer will pay Texas LNG a fee for converting natural gas into LNG. A
tolling arrangement provides offtakers with enhanced flexibility through
manageable volumes, low processing costs, maximum arbitrage between global gas
markets, and freedom to determine its preferred source and pricing index for
feed gas. Texas LNG's smaller size, innovative technical strategy, experienced
team, physical presence in Asia-Pacific and Middle East, commercial acumen,
and flexible model will differentiate its project from larger and more complex
projects being promoted by companies such as Cheniere Energy, Inc. (NYSE MKT:
LNG) as well as projects promoted by other independents.
Texas LNG's 51 acre site located along the Port of Brownsville's deepwater
channel provides an optimal location to develop an LNG export facility. "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 Mr. 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
Texas LNG's pioneering export facility concept involves a liquefaction barge
to be fabricated offsite by an experienced and qualified shipyard. At the
Texas LNG site, the barge will be permanently "grounded" so that it will no
longer be a floating vessel.
"Our unique barge-based liquefaction solution enables Texas LNG to minimize
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," said Mr. 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
Texas LNG anticipates that LNG export could commence in early 2018 given its
smaller scale and footprint, lower Capex requirements, and speed to market
strategy. The Company plans to make 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 (FID) contingent upon Texas LNG obtaining satisfactory
construction contracts and long-term customer contracts sufficient to underpin
financing of the project.
About Texas LNG
Texas LNG LLC is an independent Houston-based energy company engaged in LNG
related businesses with presence in Asia-Pacific (Australia and China) and
Middle East (Dubai, UAE). Key members of its management and technical team
have extensive LNG, gas and large engineering and ship construction global
project experience, as well as long-term relationships in LNG markets and with
capable shipyards and EPC contractors. The company is focused on speed to
market, LNG offtake flexibility, efficient use of capital, and creative
technical solutions, and is well positioned to commence production of LNG for
export to FTA and non-FTA markets in early 2018.
Vivek Chandra, Chief Executive Officer of Texas LNG, is a recognized LNG and
natural gas commercial, financial, technical and legal expert and advisor.
Over the past 24+ years, he has worked on LNG export and receiving projects in
North America, Middle East and Asia-Pacific. He is a published author
(Fundamentals of Natural Gas: An International Perspective, published by
Pennwell), director of Natural Gas & LNG Dynamics, an executive training
course held on five continents, and a frequent presenter at global gas and
LNG conferences. Mr. Chandra has served in executive positions with Nexus
Energy (Australia), Dubai Energy and Dolphin Energy (both in UAE), ARCO
International Oil and Gas Company (Alaska, California and Texas), and
Schlumberger Overseas (USA and SE Asia). Mr. Chandra holds a BSc. degree in
Geophysical Engineering from the Colorado School of Mines, a MSc. in Petroleum
Energy Management and Policy from the University of Pennsylvania, a Diplome
D'Ingenieur from the French Petroleum Institute (IFP), and a Masters in
Commercial Law from Deakin University, Australia.
Langtry Meyer, Chief Operating Officer of Texas LNG, has over 20 years
experience in strategy and business development, having worked with
international entities on multi-disciplined projects across the Middle East,
Asia-Pacific, Africa, Europe, and North America. Previously Mr. Meyer served
in executive roles with the Majid Al Futtaim Group (UAE), Samsung Engineering
(Korea), the Samsung Group Office of the Chairman (Korea), and major financial
institutions including ABN AMRO Bank (The Netherlands & France) and Hypo Bank
(Germany & USA). He is a graduate of Stanford University (BA Economics),
INSEAD (MBA), and is a CFA (Chartered Financial Analyst) Charter holder.
Mike Maloney, Chief Technical Officer of Texas LNG, has over 40 years of
experience in large-scale gas and LNG project management, project construction
and engineering. His senior role responsibilities have also included project
design, contract negotiations, quality assurance and risk management. He has
been responsible for - and delivered - major onshore and offshore gas and oil
projects in Australia, the North Sea, India, Malaysia, Vietnam, Timor Sea,
Japan and South China Sea, and has worked with large integrated energy
companies, multi-national engineering contractors and independents. He has
previously held senior management positions with ExxonMobil, ENI Group, BHP
Petroleum, Clough Engineering, and AGR Asia Pacific.
Additional information about Texas LNG may be found on its web site at
The information and materials in this document are provided for informational
purposes only and are subject to addition, deletion and modification without
notice at the sole discretion of Texas LNG LLC. The information and materials
are not warranted or guaranteed to be correct, complete or up-to-date. The
information and materials could include technical inaccuracies and other
errors. This document and all information and materials are provided "As Is"
without any representation or warranties of any kind. No liability, direct or
consequential, of any kind arising from the use of information and materials
contained in this document or linked website is accepted. Users are strongly
advised to complete their own investigations to the accuracy and completeness
of the contents of this or any other communication or document, written or
oral, provided by Texas LNG LLC or its officers or representatives.
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