Texas LNG is authorized to export low-cost, low-carbon energy to key global markets
Houston, Texas, USA, Feb. 11, 2020 (GLOBE NEWSWIRE) --
Texas LNG Brownsville LLC announces that the United States Department of Energy (“DOE”) has authorized Texas LNG Brownsville LLC (“Texas LNG”) to export U.S-sourced liquefied natural gas (“LNG”) to any country with which the United States has not entered into a Free Trade Agreement and with which trade is not prohibited by United States law or policy (“non-FTA Countries”).
The authorization’s 20-year term will begin on the date when Texas LNG commences commercial export of LNG for a total volume of 204 Bcf/yr of natural gas, which corresponds to Texas LNG’s proposed 2 train, 4 million tonnes per annum (“MTA”) LNG export facility located in the Port of Brownsville, Texas (the “Project”).
The DOE previously authorized Texas LNG to export LNG to countries that have a Free Trade Agreement with the United States requiring national treatment for trade in natural gas (“FTA Countries”).
On November 22, 2019, the Federal Energy Regulatory Commission (“FERC”) authorized Texas LNG to site, construct, and operate the Project with a liquefaction capacity of 4 MTA of LNG. The DOE participated as a cooperating agency in FERC’s environmental review of the Texas LNG project under the National Environmental Policy Act and adopted FERC’s environmental review of the Project.
As a result of extensive analysis and studies, the DOE concluded in its order that Texas LNG’s proposed exports will not be inconsistent with the public interest and that the United States will experience net economic benefits from the export of domestically produced LNG. DOE highlighted the following key findings in its recent studies of the economic impacts of LNG exports:
Increased exports of natural gas will improve the U.S. balance of trade and result in a wealth transfer into the United States.
Overall U.S. GDP improves as LNG exports increase for all scenarios with the same U.S. natural gas supply condition.
There is no support for the concern that LNG exports would come at the expense of domestic natural gas consumption.
A large share of the increase in LNG exports is supported by an increase in domestic natural gas production.
Natural gas intensive industries continue to grow robustly at higher levels of LNG exports.
Vivek Chandra, Founder and CEO of Texas LNG LLC (a member of Texas LNG Brownsville LLC) said, “We appreciate the diligent analysis DOE undertook in preparing Texas LNG’s non-FTA order. We are pleased to have achieved this important milestone that paves the way for a Final Investment Decision (“FID”) and, after construction, delivery of our low-cost, low-carbon energy to key global markets.”
Langtry Meyer, Founder and COO of Texas LNG LLC stated, “Texas LNG proudly supports DOE’s conclusions that Texas LNG will generate net economic benefits to the broader U.S. economy, improve the United States’ ties with its trade partners, and make a positive contribution to the United States’ trade balance.”
The DOE press release can be viewed via this link: https://www.energy.gov/articles/us-department-energy-issues-four-lng-export-approvals
About Texas LNG
Texas LNG Brownsville LLC (“Texas LNG”) is an independent, Houston-based LNG export company focused on creating value and minimizing risk for all stakeholders, including the local community, investors and customers. The Texas LNG facility's advantages include access to low cost, abundant Permian Basin feed gas; use of third-party pipeline infrastructure; efficient modular construction design; low overhead costs; and transparent and competitive pricing structure. In addition, the 4 MTA size of the facility fills an important need from global LNG customers seeking smaller contracted volumes in order to diversify their gas supply portfolio.
The Texas LNG export facility will be constructed in South Texas on a 625-acre site strategically located on the Port of Brownsville's deepwater ship channel near plentiful natural gas supplies and pipelines. The facility will enable the export of 4 MTA of LNG to established and emerging markets.
Samsung Engineering Co., Ltd. is a minority equity owner in and strategic partner to Texas LNG LLC. Legal counsel for the DOE application and process was provided by Greenberg Traurig.
Additional information about the Texas LNG Project may be found on its website at www.txlng.com.
The information and materials in this document are; Provided for informational purposes only and are subject to addition, deletion and modification without notice at the sole discretion of Texas LNG LLC and Texas LNG Brownsville LLC ; Not warranted or guaranteed to be correct, complete or up-to-date. The information and materials could include technical inaccuracies and other errors. ; Provided “As Is” without any representation or warranties of any kind. No liability, direct or consequential, of any kind arising from the use of information and materials contained in this document or linked website is accepted. ; Not to be considered or to be constituted as investment advice or as any type of offer, offer, invitation, solicitation or recommendation in relation to the purchase or sale of any type of financial instruments or security in any jurisdiction.
Any forward looking statements contained in the information and materials in this document are only predictions and are subject to risks, uncertainties and assumptions, many of which are outside the control of Texas LNG LLC or Texas LNG Brownsville LLC or its officers or representatives. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements.