THE WOODLANDS, Texas, Dec. 19, 2012 /PRNewswire/ -- Pangea LNG B.V. announced today that its wholly owned subsidiary, Pangea LNG (North America) Holdings, LLC, has filed an application with the U.S. Department of Energy requesting multi-contract authorization to export liquefied natural gas from its proposed facility in South Texas to any country with which the U.S. does not have a Free Trade Agreement in effect.
This is another major step in the process of developing a new LNG export terminal on a 550-acre site fronting the north shore of Corpus Christi Bay. On November 29, Pangea filed an application with DOE seeking export authority to countries with which the U.S. has Free Trade Agreements. Pangea is seeking authority to export up to 8 million metric tons per year of LNG, equal to approximately 400 billion cubic feet per year of natural gas.
The South Texas LNG Project is being designed in two phases, each capable of producing 4 million tons per year and storing approximately 250,000 cubic meters of LNG. Design options are being evaluated and the outcome is expected to consist of both land-based and floating components. The project is subject to federal, state and local regulatory approvals with the Federal Energy Regulatory Commission (FERC) acting as the lead federal agency. Pangea's schedule calls for the project to be in operation by at least 2018.
Natural gas for the South Texas Project will be supplied by customers through an associated pipeline that will likely connect to nine major interstate and intrastate transmission pipelines. As a result, the feed gas for the facility can be sourced from almost any point on the U.S. natural gas pipeline grid through direct physical delivery or by displacement, including gas from the Eagle Ford Shale and conventional production in South Texas.
"Filing our FTA and non-FTA applications with DOE are major initial milestones for this project," said John Godbold, Pangea project director.
"Our design optimization is ongoing and that work will be sufficiently complete so that we can begin the FERC prefiling review process in the Spring of 2013."
Pangea LNG B.V. is a holding company with two major LNG export projects in the works – the South Texas LNG Export Project on the Texas Gulf Coast and the Tamar Project in the Eastern Mediterranean.
Pangea LNG is a developer of floating and land-based liquefaction projects which are designed to accelerate and support the monetization of gas reserves, particularly those that are stranded or have limited market access. As announced previously, Pangea's subsidiary Levant LNG Marketing and Tamar Partners have executed a Cost Sharing Agreement to jointly participate in the cost of developing the front end engineering and design (FEED) for the Tamar Project. It will be a self-contained floating liquefaction and storage facility permanently moored 60 miles offshore in Israeli waters. The Tamar liquefaction vessel will produce LNG for export from the Tamar and Dalit fields where major natural gas reserves have been proven in recent years.
Kathleen Eisbrenner, Pangea LNG's chief executive officer, said Pangea sees opportunity in deployment of flexible, scalable liquefaction systems that can respond to worldwide demand for LNG. She said U.S. LNG exports will provide significant economic benefits to the nation's economy and to states and communities where natural gas is produced.
SOURCE Pangea LNG B.V.
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