Slump in oil prices has started showing its effects on US LNG industry by claiming its first victim.
Excelerate Energy’s Lavaca Bay LNG project has been put on hold, reports Reuters upon obtaining a regulatory filing.
A company spokesperson told Reuters that due to recent global market conditions, the company has determined that, the US$2.5 billion project no longer meets the financial criteria necessary in order for the company to move forward with the capital investment.
Excelerate Energy intended to utilize the Floating Liquefaction Storage Offloading vessel technology that would interconnect to the region’s existing pipeline system in order to obtain natural gas and liquefy it onboard the vessel.
The project was designed with the potential for expansion and the addition of a second FLSO over time for a total production capacity of up to 10 MTPA.
The facility is expected to be in-service in early 2019.
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LNG World News Staff; Image: Lavaca Bay LNG