Texas LNG gets investment fund’s backing
Texas LNG said that Third Point will provide development capital for the 2 mtpa LNG export project being developed on a deepwater frontage site along the Port of Brownsville shipping channel in Brownsville, Texas.
Third Point will take an equity interest in the project and join the board of Texas LNG.
Vivek Chandra, CEO of Texas LNG stated, “Third Point’s investment in Texas LNG greatly de-risks the project for all stakeholders, including feed gas suppliers, LNG offtakers, and future strategic investors. We look forward to advancing our ongoing discussions with these parties in the near future.”
In late October 2014, Texas LNG and its strategic and engineering partner, Samsung Engineering successfully completed the four-month pre-Front End Engineering Design study in Houston, Texas. Thereafter, teams from Texas LNG and Samsung initiated the 12-month FEED phase of the project. A large FEED team has been mobilized at Samsung’s Global Engineering Center in Seoul, Korea with the support of other Samsung Engineering entities in Korea, US, India and Thailand.
The FEED contract is intended to be converted into an engineering, procurement, construction and project management contract. Although the EPC & PM contract value has yet to be agreed, other existing LNG liquefaction terminals of similar size are valued over USD 1 billion. The base case for the project remains the construction of the liquefaction unit in a controlled shipyard environment. Texas LNG’s development strategy is to minimize the environmental impact of current gas flaring, add value to the local community through local business cooperation and job creation, and contribute positively to the USA’s balance of trade.
Results of the pre-FEED and FEED studies will provide crucial inputs to the FERC process, expected to begin in early 2015.
Press Release; Image: Texas LNG