Pointe LNG moves forward with export terminal project
Pointe LNG LLC is moving ahead with plans for an LNG export terminal in Plaquemines Parish, Louisiana.
The company has engaged Whitehall & Company as exclusive financial advisor in connection with raising investment capital and securing offtake for the development and construction of a six million-tonnes/year (tpy) LNG export terminal project that is expected to require up to US$4 billion of capital for development and construction, inclusive of US$56 million of development capital.
Development of an LNG project in the same location, Louisiana LNG Energy LLC, was started by the Pointe LNG team co-founders Tom Burgess and Jim Lindsay, which was sold in 2015 to a joint venture of Cheniere and Parallax. The two companies did not complete development and Pointe LNG returned to the site to resume LNG development under as Pointe LNG.
In a release on the 19th May, the company said the project will be the lowest-cost greenfield LNG project built in the US at less than US$600/tonne due to its gas supply with less than seven miles of pipeline buildout to connect to two major haul gas pipelines (TGPL and SONAT), stable foundation requiring no dredging or soil remediation, and minimal wetlands mitigation costs.
The 600-acre site along the Mississippi River has over 9,200 feet of riverfront that allows for potential expansion to 12 million tpy or more.
The project’s marine terminal and deep-water port will have over 50 feet of water depth, accommodating 270,000 cubic metres Q-Max LNG carriers.
With over 2,000 feet of river width, the waterway allows two-way water traffic, no congestion limits or need for tug escort, and is 6 hours from open water.
The site includes 17-ft levees on all sides maintained by the US Army Corps of Engineers.
Financial close of the development capital portion of the transaction is targeted for this year’s third quarter, with final investment decision targeted for mid-2022 and entry into commercial operation in 2026.
Source: Oil & Gas Journal