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Boston-based AGP revealed this in an emailed statement sent to LNG Prime on Monday.
The firm said the project will have a capacity of 7.2 million tons of LNG in its first phase, which will be produced in “its own floating liquefaction facilities.”
AGP did not provide further information regarding the project.
Formed by a group of US entrepreneurs, AGP plans to launch a fund-based infrastructure platform to build, own, and operate US LNG liquefaction facilities and provide end-to-end services
to both US gas producers and end users in Europe.
According to AGP, this “virtual pipeline” is designed to directly connect independent US gas producers with European gas end users from gas-intensive industries that rely on a reliable supply of gas at “competitive” prices.
AGP said this will connect three previously separate markets (US domestic markets, global LNG, and European domestic markets) with different prices, risks, and contractual standards.
The company intends to pass on the resulting cost advantages to European end users.
These advantages have so far only been available to various third parties on the global markets, AGP noted.
Following the creation of a solution to build a virtual pipeline, AGP began positioning its project in Europe, first in Germany and then in Poland.
“With the European economy struggling due to persistently high energy and gas prices, and the third anniversary of the war in Ukraine approaching, the geopolitical implications of the project are becoming increasingly prominent,” the company said.
Buyers, FID
AGP’s management told LNG Prime at the sidelines of DMG’s World LNG Summit & Awards on December 9 that AGP had already signed letters of intent for volumes from its planned US LNG export project.
The company’s management includes Pierce Kirby and Ted Muftic.
“We currently have 1 mtpa in signed LOIs and expect an additional 2 mtpa in early 2025 with Polish and German customers,” AGP said.
“These LOIs will be transformed into 12-year contracts priced on Henry Hub plus costs through the supply chain,” they said.
According to AGP, FID is expected to be made in 2025.
“The FLNGs will then be ready four years thereafter,” AGP said.
“Compared to current European market prices, our platform could deliver LNG at a 30 percent discount,” AGP claims.
US LNG facilities
The US currently has no floating LNG export facilities.
Delfin LNG has been working for years on its floating LNG export project in the Gulf of Mexico, but it still has not made a final investment decision on the first unit.
The company plans to install up to four self-propelled floating liquefied natural gas vessels (FLNGVs) vessels that could produce up to 13.3 mtpa of LNG or 1.7 billion cubic feet per day of natural gas.
Currently, the US exports LNG via Cheniere’s Sabine Pass and Corpus Christi terminals, Sempra Infrastructure’s Cameron LNG terminal, Venture Global’s Calcasieu Pass, the Freeport LNG facility, the Cove Point LNG facility, and the Elba Island terminal.
Venture Global is also nearing the launch of the first phase of its Plaquemines LNG plant and Cheniere’s Corpus Christi Stage 3 is also expected to begin LNG production by the end of the year.
In addition, energy giants QatarEnergy and ExxonMobil are working to launch their Golden Pass LNG export facility in 2025 or 2026.
(Article updated to add further comments by AGP’s management.)