Texas LNG Brownsville LLC (Texas LNG) said Dec. 4 that investment fund Third Point LLC (Third Point) will provide development capital for the 2 million tonnes per annum-LNG export project being developed on a deepwater frontage site along the Port of Brownsville shipping channel in Brownsville, Texas.
New York-based Third Point LLC will join Texas LNG’s board. The fund has $17 billion in assets under management, Houston-based Texas LNG added.
Vivek Chandra, CEO of Texas LNG stated, "The ability of Texas LNG to attract investment from a leading financial institution such as Third Point is a testament to the experience of the project management team and its strategies. 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," said Vivek Chandra, Texas LNG’s CEO.
In late October, Texas LNG and strategic Seoul, South Korea-based engineering partner Samsung Engineering Co. Ltd. (KOREA: 028050.KS) completed the pre-FEED study in Houston. Since then, a FEED team has been established at Samsung’s Global Engineering Center in Seoul. It has support from Samsung Engineering in the U.S., Korea, India and Thailand, Texas LNG added.
The FEED contract is planned to be converted into an engineering, procurement, construction and project management contract. The latter type of contract's value is not yet agreed upon, the company said, noting that other, existing LNG liquefaction terminals similarly sized are valued at more than $1 billion.
"We have been putting utmost efforts to provide the best solution for Texas LNG with our reliable highly skilled team of LNG project engineers and experts. Successful completion will create the stepping stone for us to become a major player in the LNG market," said Choong Heum Park, Samsung Engineering’s president and CEO.
Results of the pre-FEED and FEED studies will provide crucial inputs to the Federal Energy Regulatory Commission process scheduled for early 2015.
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