Project Overview

Texas LNG Schematic

Texas LNG will construct, own, and operate a Liquefied Natural Gas (LNG) facility to be constructed at the Port of Brownsville in Brownsville, Texas. Texas LNG will have a planned capacity to produce  2 MTA (million tonnes per annum) permit capacity of Liquefied Natural Gas (LNG) from approximately 275 MMcf/d or 0.28 Bcf/d of feed gas sourced from the extensive US natural gas system (Phase 1). Phase 2, to be developed at a later date, will increase capacity by additional 2 MTA permit capacity.

For comparison, according to the US Energy Information Agency, in 2015 total US production was approximately 30,000 Bcf of gas per year.  The Texas LNG project (Phase 1) would consume less than 0.3% of US natural gas production if production levels in 2021 stay the same as 2015.  It is very likely that US gas production will continue to increase over the next few years, thus further decreasing Texas LNG's share of total production. 

Final Investment Decision (FID) for the development of the Texas LNG liquefaction project is expected in 2018 and is contingent on many factors such as completing the required commercial agreements, securing all necessary permits and approvals, obtaining financing and incentives, and other factors associated with commercial viability of the investment. 

Texas LNG is seeking to export LNG to FTA and non-FTA markets with first LNG production in 2022. Texas LNG has received authorization to export to FTA markets and is expecting non-FTA export approval during the FERC application process.

The project involves LNG liquefaction modules fabricated offsite by an experienced and qualified shipyard. At the Texas LNG site located close to the entrance of the deepwater Brownsville ship channel, the modules will be permanently installed on site. LNG would be offloaded from conventional tank(s) onto standard sized LNG carriers berthed alongside the Texas LNG facility.  Off-the-shelf technology will be used for both the liquefaction process and the gas treatment plant that will be built on site to treat pipeline feed gas by removing any remaining natural gas liquids and other non-methane products before the liquefaction process.  The plant will be designed to minimize environmental impact in the region.

This strategy is designed to allow Texas LNG to minimize complex onshore construction, facilitate civil construction works using local resources, leverage local labor and suppliers, and reduce the overall local environmental impact. Texas LNG is evaluating and finalizing its liquefaction technology for the Project and is working with its engineering partners, Samsung Engineering and Braemar Engineering to design the facility. 

Samsung Engineering, a global leading engineering company, will provide all technical & engineering services to project and take a minority interest in project. Conceptual study and preliminary engineering (pre-FEED) engineering has been completed. Detailed Front End Engineering (FEED) began in November 2014 and was completed in 1Q 2016. Samsung Engineering wth KBR, will provide pre-Final Investment Decision (“pre-FID”) Detailed Engineering and post-Final Investment Decision (“post-FID”) Engineering, Procurement & Construction (“EPC”) services 

Texas LNG will operated both as toll processor of natural gas into LNG and a producer of extracted natural gas liquids, without taking ownership of the feed gas or the produced LNG, as well as a more conventional LNG producer offering FOB and Delivered conventional LNG to customers .  Our facility will process treated pipeline gas sourced from the US natural gas network into LNG for export to FTA and non-FTA markets.  In a tolling business model, LNG offtakers will be responsible for contracting feed gas deliveries to the plant as well as ships to export the LNG. Texas LNG will facilitate introductions to potential feed gas suppliers. In the conventional model, Texas LNG will manage these services and be able to provide LNG for sale to its customers, either on a delivered or FOB basis.

Texas LNG is ideally placed to export gas from the US gas grid, which includes a number of large producing areas such as the Eagle Ford fields of Southwest Texas and others – thereby potentially reducing a portion of currently flared gas.  and providing valuable jobs and revenues for the Texas Rio Grande valley region.

For LNG Offtakers, Texas LNG offers manageable volumes, flexible terms, low processing costs, maximum arbitrage between global gas markets, and freedom to source their own feed gas based on any pricing terms desired. Texas LNG is focused towards developing a low cost, low risk, realistically sized project suited for today's global markets.

Texas LNG has begun the US Government FERC pre-Filing process in April 2015.  A detailed Project Overview (FERC Resource Report #1) was submitted in May 2015. This report can be downloaded from the FERC site by Clicking Here. All remaining Resources Reports were submitted in late 2015 and the formal FERC process began in March 2016 - please visit the Regulatory Updates page on this site.

 

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