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Texas LNG export project files formal FERC application

filed a formalapplication with FERC on March 31, seeking authorization under the Natural GasAct for its proposed natural gas liquefaction and export facility inBrownsville, Texas.

Theproposed Texas LNG terminal, which has a planned capacity of up to 4 milliontonnes per annum, will receive gas through an approximately 150-mile intrastatepipeline that would be built from the Agua Dulce gas hub to the Brownsvillemarket, according to the application. The project's two liquefaction trainswill be built in separate phases, with phase two contingent upon customerdemand.

CEOVivek Chandra said the Texas LNG project's smaller scale continues to give it acompetitive edge in a market full of larger-scale projects.

"Thecurrent market favors small, low-cost, low-risk projects like Texas LNG,"he said in a March 31 interview. "With the delays [and] cancellations of anumber of 'megaprojects' globally over the past few months, many supply-demandforecasts created prior should be reviewed — and we are seeing demand for LNGin smaller quantities with flexible terms."

In aMarch 31 news release, Chandra noted that "transitioning from thepre-filing to the formal application stage is a significant milestone, placingTexas LNG within a select and elite group of U.S. LNG export projects."

TexasLNG expects to reach a final investment decision in 2017 and begin productionin 2020, the application said. (CP16-116)

TexasLNG submitted its requestto enter FERC's prefiling process in March 2015. In July 2015, FERC a notice of intent toprepare an environmental impact statement for the project, whose pre-FEEDestimated cost is$1.3 billion.

TheU.S. Department of Energy has authorized Texas LNG to export LNG to countrieswith which the U.S. has a free trade agreement, and is reviewing the company'sapplication to export LNG to non-FTA countries.

Twoother LNG export projects have proposed terminals in Brownsville and remain inthe prefiling process. The ExelonCorp.-linked AnnovaLNG LLC would have at least 0.8 Bcf/d capacity, while 's would include upto six liquefaction trains with a nominal output capacity of 4.5 mtpa of LNG.