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Port of Brownsville
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Port of Brownsville Named As Location of Choice in Department of Energy Application
Brownsville, Texas, January 24, 2012: The Port of Brownsville Board of Commissioners approved a lease option agreement with liquefied natural gas company Gulf Coast LNG Export, LLC for 500 acres of Port property. On January 10, 2012, Gulf Coast LNGs application was filed with the United States Department of Energy seeking authorization to export liquefied natural gas out of a proposed facility located at the Port of Brownsville. While authorization has not been granted by the U.S. Department of Energy yet, Gulf Coast LNG Exports and Port officials are highly optimistic due to the significant demand for U.S. LNG and Gulf Coasts sound business model. Gulf Coast officials indicated the Port of Brownsvilles location and business friendly approach were among some of the reasons they decided on the Port. We believe the Port of Brownsville is in a strategic geographic location to assure the success of this project, and we envision this to be a long-term relationship with the Port said Michael Smith, principal owner and CEO for Gulf Coast LNG Export, LLC. Mr. Smith is also CEO and founder of Freeport LNG Development, L.P. Freeport LNG owns and operates a 2.0 billion cubic feet/day LNG receiving and regasification facility near Freeport, Texas, and is currently expanding that facility to add liquefaction and export capability.
The partnership between the Port of Brownsville and Gulf Coast LNG will include a multi-billion dollar direct investment by Gulf Coast LNG Export of which the majority will go towards the development of a natural gas liquefaction facility and LNG export terminal located on Port property, in addition to infrastructure improvements necessary to support this business.
The huge amount of natural gas reserves developed in the United States in recent years, said Mr. Smith, and the significant international demand for LNG, will allow for the development of multiple LNG export terminals in the US. The United States is now believed to have more natural gas than it can use in a century.
Once the D.O.E. approves the application Gulf Coast LNG will initiate the review process with the Federal Energy Regulatory Commission to receive authorization to site, construct, and operate the terminal at the Port. The project is expected to be operational in 2018 and is forecasted to bring thousands of jobs during the construction phase and hundreds of jobs once the facility is operational. This project falls in line with our mission of bringing more quality jobs to the region, and it also allows us to continue to diversify the type of cargo handled at the Port, while opening up a new industry for us, said Port Director & CEO, Eduardo A. Campirano.
The Brownsville Navigation District strives to be recognized for excellence in stewardship, earning strong public confidence in sound and responsive operations. By 2015, the Port will have created more quality jobs, attracted more private and public investment, increasing port capacity, protecting the environment, and promoting common good through the strategic development of the Port of Brownsville. It is this very commitment to excellence that will ensure the Port of Brownsville will continue to contribute to the community for years to come.