Texas LNG to Commence FERC Pre-filing Process

Texas LNG facility

Published Mar 12, 2015 11:23 AM by The Maritime Executive

Texas LNG Brownsville LLC (“Texas LNG”) is pleased to announce that on Monday, March 9, 2015, it became the first LNG export facility proposed for the Brownsville, Texas area to initiate the U.S. Federal Energy Regulatory Commission (“FERC”) pre-filing process, kicking off the regulatory review for the proposed liquefied natural gas (“LNG”) export facility in Brownsville. The project has been assigned Docket No. PF15-14. The FERC regulates the siting, construction, operation, and maintenance of the physical LNG terminal and related infrastructure.

Texas LNG is planning to build the Brownsville project in two phases, each with LNG production of two million tons per year (“MTA”). Pending FERC’s final approval to construct the project, Phase 1 is expected to commence production in 2020. 

Vivek Chandra, CEO of Texas LNG stated, “The submission of our pre-filing request to FERC is a major milestone for the project. We now join a select group of projects that have entered this phase of project development. We are very pleased with the performance of our team, which includes Samsung Engineering, Braemar Engineering, NRG, K&L Gates, GreenbergTraurig, and Royston Rayzor and are confident that we have the skills and resources in place to efficiently work with FERC through this important process.” 

In addition, Texas LNG is pleased to announce that it has executed an amendment to its Option to Lease Agreement with the Brownsville Navigation District in Cameron County to upgrade to a significantly larger and more optimal 625-acre site with deep-water frontage to the Port of Brownsville shipping channel. The new site, located approximately five miles from the mouth of the Gulf of Mexico on the north side of the channel, facilitates construction, will allow safer reduced LNG tanker navigation within the channel, and allows the project to plan for future expansion.

Langtry Meyer, COO of Texas LNG commented, “Our new, larger 625-acre site, which will place us as the closest proposed Brownsville LNG project to the Gulf of Mexico, enhances our design and expansion flexibility and minimizes transit times of LNG export tankers to the benefit of potential offtakers and investors. We thank the Port of Brownsville and the Port Isabel and Brownsville communities for their ongoing support.”

Texas LNG’s equity and engineering partner, Samsung Engineering Co., Ltd. (“Samsung Engineering”) has assigned a large team of experienced engineers and project staff at its Global Engineering Center in Seoul, Korea to lead the engineering phase of the project with support from its Houston-based North American Headquarters.  As of the end of February 2015, Samsung Engineering has completed four months out of the 12 month Front End Engineering and Design (“FEED”) study and over 50,000 cumulative man-hours of engineering.   In 2014, Samsung Engineering completed Concept Design and pre-FEED studies. Texas LNG is being supported by its owner’s engineer, Braemar Engineering, and environmental consultant, Natural Resource Group (“NRG”), to optimize public safety and minimize environmental impacts while complying with—and in many cases— exceeding the federal, state and local regulations. Engineering efforts are focused on providing low-cost, technically simple and reliable solutions that will use modular construction which will leverage local South Texas labor resources and shipyard efficiencies.