LNG Expansion: CryoSys and Woodside Advance Massive U.S. Gulf Coast Liquefaction Projects
The United States has elevated into the top tier of liquefied natural gas exporters, a role which likely can only be enhanced by two new major projects developing on the nation’s Gulf of Mexico coastline.
CryoSys, a Houston-based company in gas processing and LNG technology, has signed an agreement with PIC Americas to deliver advanced pretreatment and liquefaction solutions to the latter’s planned development of a LNG export facility with a minimum capacity of 7.2 million metric tons per year (MTPA).
Meanwhile, another developer, Woodside, has entered into a revised lump sum turnkey engineering, procurement and construction (EPC) contract with Bechtel to develop the three train 16.5 MTPA foundation development of Louisiana LNG. Bechtel will continue to work under a limited notice to proceed (LNTP) executed under the revised EPC contract.
The LNTP provides for continued site construction and commitment to certain key materials and services required for the foundation project.
PIC Americas’ facility will be strategically located on the Texas Gulf Coast along a deep-water channel and will provide access to maritime vessels, including ocean-going barges. It is designed to meet increasing market demands in the Americas, including the need for cleaner-burning fuels, and will allow capacity expansion, up to 14 MTPA, for PIC Americas to respond to the rising global demand for LNG and ensure reliable supply chains.
The project will include bunkering services, LNG ISO containers for flexible distribution, and fueling for LNG carriers.
"We are proud that PIC Americas sought to work with CryoSys on this cutting-edge Facility. We are excited to work with Michael and his team at PIC Americas to bring this project online and continue to be at the forefront of LNG technology," said Neil Karr, President of CryoSys, in a statement.
The facility will also feature truck racks to support overland fuel distribution to expand its logistical reach and service capabilities.
Woodside continues to target final investment decision readiness by the first quarter of 2025. Woodside CEO Meg O’Neill said the signing of the EPC contract and continuation of engineering and construction activities contemplated by the LNTP represented an important step in the development of Louisiana LNG.
“Louisiana LNG is positioned to provide LNG into the growing global market and generate value for shareholders in accordance with our capital allocation framework,” O’Neill said in a statement. “We continue to move at pace. In a short period of time, we have completed the acquisition, secured competitive revised EPC pricing that covers all three trains, and opened the data room with strong interest from potential project partners.”
Total Louisiana LNG expenditure from December to end of Q1 2025 is expected to be up to $1.3 billion, which is included in the overall estimated cost for the foundation development. The estimated forward cost for the foundation development is $900-960/ton.
Natural gas is liquified by chilling it below 260 degrees Fahrenheit (minus 162 Celsius) to store it safely for shipping. Once delivered to onshore markets, it is then regasified and utilized for commercial or industrial purposes.
Asia is one of the world’s largest importers for global LNG. The shale gas revolution in the U.S. has elevated this country to the top of the global export nations, according to multiple reports.
Natural gas is fossil fuel but as a power generation resource it emits only half of the CO2 that coal-fired plants do. Many view it as a bridge fuel from a fossil-based electricity system to decarbonized power generation.
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