Houston, Texas, Jan. 10, 2017 (GLOBE NEWSWIRE) -- Houston, Texas, January 10, 2017 – Texas LNG Brownsville LLC (“Texas LNG”) is pleased to announce that it has executed detailed non-binding Term Sheets with four independent LNG buyers in South East Asia and China for a volume of 3.1 MTA. Buyers include a mix of state-owned and private entities that currently own, or plan to construct LNG receiving facilities in the next few years. Option rights in the Term Sheets could increase these offtake volumes to approximately 4 MTA. Texas LNG is now oversubscribed for its Phase 1 capacity of 2 MTA (comprising of one APCI LNG train), a key requisite to attaining FID.
The Term Sheets 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 capacity fees to liquefy natural gas, store it, and deliver it onto LNG ships arranged by the LNG buyer. Texas LNG is also promoting an SPA structure, whereby it is responsible for delivering LNG on an FOB or DES basis, thus providing maximum flexibility to the LNG buyer.
Emerging markets are experiencing healthy energy demand growth and declining domestic production – importing LNG is an attractive solution. Low cost LNG is encouraging new demand in many parts of the world, which should lead to demand exceeding supply in 2022.
Vivek Chandra, Founder & CEO of Texas LNG, 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 realize 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.”
Langtry Meyer, Founder & COO of Texas LNG, stated “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 MTA train), and is confident that it will close out the full 4 MTA production capacity, for which Texas LNG currently is seeking authorizations from the U.S. Federal Energy Regulatory Commission and the U.S. Department of Energy.”
About Texas LNG
Texas LNG Brownsville LLC is an independent, Houston-based LNG company. The company is focused on low unit costs, realistic project size, LNG contractual flexibility, and proven liquefaction technology. Samsung Engineering is a minority equity owner in Texas LNG.
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, in proximity to natural gas supplies. Phase 1 production of 2 MTA of LNG for export to FTA and non-FTA markets is expected to commence in 2021-22.
The Texas LNG team comprises leading financial, technical, environmental and legal experts including Samsung Engineering, BNP Paribas, Galway Capital LP, Third Point LLC, Braemar Engineering, Air Products, Honeywell, Environmental Resources Management (ERM), K&L Gates, GreenbergTraurig, Andrews Kurth, Royston Rayzor, amongst others.
Additional information about Texas LNG may be found on its website at www.txlng.com.