US ST LNG Plans to Finalize Investment Decision on $8.2 Billion Project in 2027

en.Wedoany.com Reported - On October 29, US company ST LNG set the final investment decision (FID) for its $8.2 billion liquefied natural gas export project offshore Matagorda, Texas, for mid-to-late 2027, subject to securing customer offtake commitments of at least 2 million tonnes per annum. The project received approval from the US Maritime Administration for its deepwater port license application on October 28 and remains in the pre-FID stage.

ST LNG Chief Executive Officer Sharad Tak said the company has not yet signed long-term LNG sales agreements but is close to concluding its first offtake contract with an Indian integrated energy company, while conducting procurement negotiations with potential buyers in Europe and Asia. The company plans to use long-term sales agreements to support the construction of the first liquefaction train, with investment decisions on the remaining trains to be made progressively at intervals of approximately six months, depending on additional customer offtake volumes.

The project plans to adopt a financing structure combining debt and equity, and ST LNG has approached 4 to 6 banks. The project company also plans to use a floating LNG storage unit converted from an older vessel as an alternative to onshore storage tanks. Company President Alap Shah believes the floating storage solution costs less than building onshore tanks.

Regarding export permits, the project has obtained authorization from the US Department of Energy for LNG exports to free trade agreement (FTA) countries, while authorization for exports to non-FTA countries is still pending approval. ST LNG currently targets mid-2030 for the start of commercial operations of the first phase.