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 servicesto 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.
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.
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.
Energy News Beat