Texas LNG lines up eight non-binding supply deals

Texas LNG, proposing to develop a 4 mtpa LNG export facility at the Port of Brownsville in South Texas, signed eight non-binding deals with potential customers in Europe, Southeast Asia and China. 

The largest portion of the deals was signed with Chinese companies, while southeast Asian and European customers lined up two and one deal respectively, Texas LNG’s chief executive, Vivek Chandra said, Reuters reports.

The facility, with a total production capacity of four million tones of LNG per year, will be built in two phases.

Earlier plans projected a final investment decision in 2018, the company contracted Samsung Engineering and KBR to provide pre-final investment decision detailed engineering and post-final investment decision engineering, procurement and construction services last year and executed several non-binding term sheets with independent buyers in southeast Asia and China for 3.1 mtpa of LNG.

However, the FID is now expected in 2019 and Texas LNG has lined up eight companies under new non-binding agreements, six of which have access to LNG terminals currently, Chandra said, without disclosing any names.

Production from the facility is expected to start in 2023 from the first phase of the project.

LNG World News Staff