02-03-2017

Samsung Engineering and KBR to design and build Texas LNG’s export facility

Texas LNG Brownsville LLC is pleased to announce that it has selected Samsung Engineering Co., Ltd and KBR Inc to provide Texas LNG with pre-Final Investment Decision Detailed Engineering and post-Final Investment Decision Engineering, Procurement & Construction (“EPC”) services for its proposed 4 million tonnes per annum LNG export facility.
         
Samsung Engineering, a minority equity owner and technical partner of Texas LNG, has already completed the Conceptual Study, Pre-Front End Engineering Design (“Pre-FEED”) and FEED for the Texas LNG Project, culminating in over 200,000 engineering-man hours. The Texas LNG Project design concept envisions constructing modular designed and pre-fabricated liquefaction trains using proven technology and standardized components in a controlled shipyard environment to reduce overall project costs, reduce complex onshore civil construction works, minimize local onsite environmental impacts, and minimize commissioning costs during permanent installation.

Braemar Engineering, acting as Texas LNG’s owners’ engineer, together with Samsung Engineering and KBR, continues to identify value engineering enhancements to reduce project costs and optimize performance. Braemar Engineering is also responding to data requests during the Federal Energy Regulatory Commission permitting process.
         
KBR, a pioneer and leader in LNG with over 40 years of continuous LNG experience dating back to the 1970s, has developed about one third of the world's LNG capacity and has extensive experience designing and fabricating more than 1.3 million tonnes of modules, including the world's first fully modularized LNG facility. KBR also has 30 years of experience with the proven and robust APCI AP-C3MR™ technology used in most world LNG operating liquefaction facilities, and which Texas LNG has chosen for its liquefaction plant design.
         
Samsung Engineering and KBR will focus on value engineering and optimization for the proposed 4 MTA export facility to be built in two 2 MTA phases. Texas LNG aims to be among the lowest cost US LNG projects and pass savings to its LNG customers.

Pre-FID Detailed Engineering, expected to begin this year, will include further design and schedule optimization, identification of long lead items and early works commitments, early preparation of purchase orders, and all due diligence in relation to technical commercial and contractual matters that will enable Samsung Engineering and KBR to execute a lump sum turnkey (“LSTK”) EPC contract for the Texas LNG plant. Agreements between Texas LNG and Samsung Engineering / KBR for pre-FID Detailed Engineering and EPC will be negotiated over the coming months.

Executive Vice President and CMO of Samsung Engineering, Jae Hoon Choi, stated,  “We want to firmly establish our competitiveness in LNG and have successfully completed the Texas LNG FEED in 2016. We’ve formed a multidisciplinary LNG task force consisting of LNG liquefaction process engineers, modularization specialists, and cost and schedule experts. Samsung Engineering and KBR will execute an EPC with Texas LNG and deliver a high-quality LNG plant at a world competitive price.”
         
This significant milestone towards FID follows the recent announcement that Texas LNG has executed detailed non-binding Term Sheets with four independent LNG buyers in Southeast Asia and China for a volume of 3.1 MTA.
         
Final Investment Decision for the development of the Texas LNG liquefaction project is expected in 2018.