Excelerate Energy completed its front-end engineering and design (FEED) work for the 4.4 million ton per annum (mtpa) dockside liquefaction facility to be located in the Texas Gulf Coast.
The results from the FEED uphold the market validity of the export project as the site-specific study provides more accurate cost estimates and engineering documentation for the project. The study has determined the Lavaca Bay LNG facility will cost $2.4 billion, which equates to a price of $540 per ton of LNG produced.
“Now that we have more accurate costing from the FEED, we are able to finalize negotiations with our potential offtakers,” said Rob Bryngelson, president and CEO of Excelerate Energy.
The Lavaca Bay LNG project will be located in Port Lavaca, situated between Galveston and Corpus Christi on the Texas Gulf Coast, and will be designed to export LNG to markets worldwide by 2017. The facility is expected to be in service in 2018.
Excelerate Energy was granted permission to export to free trade agreement (FTA) nations by the Department of Energy and filed for non-FTA approval in October.