Texas-based LNG Brownsville has executed detailed non-binding Term Sheets with four independent LNG buyers of South East Asia and China for a volume of 3.1 million tonnes per annum (mta).
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The buyers include government-owned and private companies that either possess or plan to develop LNG receiving facilities.
Option rights in the Term Sheets can extend the offtake volumes to nearly 4mta.
With the Phase 1 capacity of 2 MTA that also includes one APCI LNG train, Texas LNG is now oversubscribed.
The Term Sheets form the commercial foundation for Texas LNG to continue negotiating definitive 20-year LTAs and SPAs.
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By GlobalDataUnder the LTAs, Texas LNG will receive monthly capacity fees to liquefy natural gas, store and deliver it to LNG ships of the buyer.
Texas LNG founder and CEO Vivek Chandra 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 realise 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.”
Texas LNG is also endorsing an SPA structure, through which it will be responsible to provide LNG on an FOB or DES basis, thereby ensuring maximum flexibility to the LNG buyer.
Texas LNG founder and COO Langtry Meyer said: “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 authorisations from the US Federal Energy Regulatory Commission and the US Department of Energy.”
The emerging markets in Asia are witnessing a growth in energy demand. With the falling domestic production, LNG imports are a viable option.
The initial project of Texas LNG will be developed at the Port of Brownsville, South Texas. The 625-acre site is located in proximity to natural gas supplies on the northern shore of Port of Brownsville's deepwater ship channel.
Image: An artist impression of Texas LNG’s planned liquefaction facilities. Photo: courtesy of Texas LNG.
