Excelerate Energy to build first US floating LNG unit
HOUSTON -- Excelerate Energy said Tuesday that it will build the first floating liquefaction facility in the US at Port Lavaca, located between Galveston and Corpus Christi on the Texas Gulf coast.
The Lavaca Bay LNG project is the latest in a string of planned US export plants as domestic gas production soars. First exports from the facility are expected in 2017, the company said.
Excelerate will use its floating liquefaction storage offloading vessel (FLSO) technology on the plant, the US-based company said.
Excelerate’s FLSO comprises 3 million tpy of production capacity, 250,000 cubic meters (m3) of LNG storage, and a fully integrated gas processing plant.
With that gas processing capability, the FLSO can accommodate a wide range of gas compositions at its inlet, making it well suited for applications near shore or offshore, Excelerate said.
For situations where gas processing is not required due to presence of existing processing facilities or where pipeline quality gas is used as the feedstock, the processing equipment can be removed and liquefaction capacity increased to 4 million tpy.
The FLSO will measure 338 meters in length, with a breadth of 62 meters.
Front-end engineering and design (FEED) is in an advanced phase, and Excelerate has entered into discussions with potential off takers and natural gas suppliers as well as investors and potential sources of finance to take the project forward, it said.
Excelerate Energy expects FEED to last until the end of 2012. Following its completion and successful permitting, project delivery will take approximately 44 months from final investment decision (FID).
In its initial phase, the Lavaca Bay LNG project will consist of one permanently moored FLSO with multiple connections to the onshore natural gas grid in South Texas.
The project will be designed with the potential for expansion and the addition of a second FLSO over time for a total production capacity of up to 8 million tpy.
Excelerate Energy said it expects to begin the export authorization and Federal Energy Regulatory Commission (FERC) permitting process immediately.
"Excelerate Energy applies the same philosophy to its liquefaction vessel design as it does to its regasification vessel fleet – essentially using proven technology in an innovative way to provide more efficient and timely solutions to the LNG industry," said Rob Bryngelson, Excelerate Energy CEO.
"Port Lavaca provides us with the unique opportunity to further capitalize on our position as a market leader in floating LNG solutions."
Excelerate said it selected Port Lavaca for the site of the facility because of its direct access to the highly liquid south Texas natural gas market, access to the Atlantic Basin through the Gulf of Mexico, and potential access to the Pacific basin with the widening of the Panama Canal.
The facility will interconnect to the region's existing pipeline system in order to obtain natural gas and liquefy it onboard the vessel.
The Port Lavaca location being developed by Excelerate has previously received FERC approval as an LNG import facility, which should facilitate the permitting process, according to the company.
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