Texas LNG secures US DOE approval to export LNG

The US Department of Energy (DOE) has authorised Texas LNG to export domestically produced LNG to countries that have entered into a free trade agreement (FTA) with the US.

The authorisation allows Texas LNG to export around 2 million tonnes a year of domestically produced LNG. The company's project is located on a 110-plus acre site with deepwater frontage to the Port of Brownsville shipping channel in Brownsville, Texas.

Texas LNG CEO Vivek Chandra said that the approval is an important regulatory milestone for the company's project.

"LNG exports will play an important role in the continued development of the US gas industry and our Texas LNG project will provide valuable employment and other economic benefits to Brownsville and the Rio Grande Valley region," Chandra added.

Samsung Engineering has secured a contract from Texas LNG to deliver pre-front end engineering design and front end engineering design (FEED) services for the project.

Samsung expects to complete FEED in the second half of 2015 and plans to engage open book cost estimating to allow the execution of a fixed price EPC contract to be signed at final investment decision on the project.

The company will also become a minority equity stake owner in the project. Both of the firms have already started to identify LNG liquefaction technologies.

Samsung will also support Texas LNG's concept to build the liquefaction unit on barge / skid mounts in a controlled shipyard environment. Texas LNG said that its pre-fabricated liquefaction solution will minimise complex onshore civil construction works and project costs.

Samsung will offer technical studies and documentation to support Texas LNG's Federal Energy Regulatory Commission (FERC) permit pre-filling application process. Texas LNG expects to formally start the FERC pre-filing permitting process in the second half of 2014.

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