ST LNG plans to finalize its $8.2 billion offshore liquefied natural gas (LNG) export project in Texas by mid- to late 2027, according to the company’s president. The project, located near Matagorda, Texas, will feature four liquefaction plants with a combined capacity of 8.4 million metric tons per annum (mtpa), accounting for about 8% of U.S. LNG capacity. The company received a key regulatory approval from the U.S. government, marking the fastest deepwater port license review in over two decades.
ST LNG aims to secure minimum customer commitments totaling 2 mtpa before moving forward with the project. Commercial operations are expected to begin by mid-2030, with the first unit approved once long-term sales agreements are in place. The company is in advanced talks with an Indian energy firm as its first buyer and is negotiating with European and Asian companies for additional offtake agreements.
To finance the project, ST LNG is exploring a mix of debt and equity, with discussions underway with four to six banks. CEO Sharad Tak noted that banks are eager to move forward within the next three to four months. The company also received approval from the U.S. Department of Energy to export LNG to countries with free trade agreements and expects similar approval for non-FTA countries soon.
ST LNG’s president, Alap Shah, highlighted that using floating storage units would be more cost-effective than building onshore LNG tanks. The project is part of a broader effort by the U.S. to diversify energy supplies, particularly in light of geopolitical tensions in the Middle East. The U.S. is currently the world’s largest LNG exporter, with over 100 mtpa of production capacity and another 100 mtpa under construction.