EOS LNG and Barca LNG have won an approval from the U.S. Department of Energy (DOE) to export LNG from a proposed floating liquefaction unit and storage tanker at the Port of Brownsville, Texas to nations with a Free Trade Agreement (FTA) with the United States.
The two companies won each an authorization to export liquefied natural gas in a volume equivalent to approximately 584 billion cubic feet per year (Bcf/yr) of natural gas, or 1.6 Bcf per day (Bcf/d), from its proposed LNG terminal at the Port of Brownsville for a 25-year term.
Eos said that it plans to buy natural gas at the domestic price of the Henry Hub futures and sell it internationally at the prevailing market rate.
However, if the profitability of this model declines, Eos will maintain the option to convert the business model to an LTA model, under which individual customers who hold title to the domestic natural gas will have the right to deliver that gas to Eos terminal at the Port of Brownsville and receive LNG in return.
LNG World News Staff, December 3, 2013