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General American LNG fires up new export LNG terminal project in USA

GALNG secured land for American Coast LNG Terminal

The Houston-based General American LNG LLNC (GALNG) company is securing land along the US Gulf Coast to build and operate the American Coast liquefied natural gas (LNG) Terminal project.

This American Coast LNG Terminal project is expanding the long list of the already announced LNG production and export facilities planned on the Texas and Louisiana Gulf Coast.

Since the shale gas production generated a glut all over country, the debate is rolling on if the US Administration should facilitate or refrain the LNG export projects.

General_American_LNG_American-Coast-LNG-Terminal_Project_MapOn one side the low gas prices provide USA with a breaking competitive advantage on the petrochemical industry where number of ethylene crackers and nitrogen fertilizer plants are crafted on the engineering companies drawing boards.

On the other side, the shale gas producers still dream to see their gas prices taking off to pay bask their exploration and production capital expenditure.

In this context, these shale gas producer see in the export of LNG great opportunities to sell their gas at better prices than on the current domestic market.

So far the US Administration was delivering the export licences to the non-Free Trade Agreement (non-FTA) countries sparingly.

But the Ukraine crisis and related tension with Russia which may last more than expected is blowing  a warm tail wind on the US export LNG promoters in opening wide doors to the European market.

This external context favors all the companies looking for financing projects such as GALNG American Coast LNG Terminal.

GALNG at pre-FEED on American Coast LNG project

Benefiting from nearly unlimited reserves of natural gas and from dense pipelines infrastructures, GALNG has been purposely established to build and operate such LNG export terminal on the Texas or Louisiana Gulf Coast.

With a first investment of $52 million, GALNG acquired 300-acre land with 900 meters direct access on the deep water seafront.

General_American_LNG_American-Coast-LNG-Terminal_ProjectTo be developed in phases, the American Coast LNG Terminal project should have a capacity of 8 million tonnes per year (t/y).

The natural gas should be supplied to the GALNG through the Houston Pipeline Company.

For this LNG export project, GALNG is planning to invest $4.6 billion capital expenditure.

Then to finance its project, GALNG is setting a business model based on LNG Master Service Purchase Agreements (MSPA) with bankable buyers.

Currently GALNG is already working on the pre-front end engineering and design (pre-FEED).

Assuming that the Master Service Purchase Agreements get signed on the same period as the front end engineering and design (FEED) is completed, General American LNG is expecting to start the engineering, procurement and construction (EPC) contract in 2016 for the first shipment from the American Coast LNG Terminal Project Phase-1 in 2022 to be followed by the Phase-2 in 2024.

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1 Comment to “General American LNG fires up new export LNG terminal project in USA”

  1. I don’t understand that “The natural gas should be supplied to the GALNG through the Houston Pipe Line Company.” So currently how it was supplied because I also though that natural gas was supplied by pipeline.

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