GLS Agrees US LNG Technology Deal

Global LNG Services said its Main Pass Energy Hub (MPEH) 16 miles offshore southeast Louisiana in the Gulf of Mexico had made progress with the selection of LM9000 gas turbines made by Baker Hughes for its liquefaction plant.

The project envisages two plants with a combined capacity of 24mn metric tons (mt)/year of LNG, will be permanently stationed at MPEH. 

GLS said June 26 its "patented Liqui-max vessel design uses all industry standard equipment in a unique configuration, allowing expanded throughput, and results in an unprecedented capex below $400/mt/yr annual liquefaction capacity. GLS’ patented cost advantage enables it to introduce a floating tolling fee model with a floor rate of Henry Hub +15% +$1.50/mn Btu for pre-processing and liquefaction – and 50/50 sharing of the liquefaction netback value above $1.50/mn Btu."

GLS however told NGW on the sidelines that the tolling price quoted was only available for the first 3mn mt/yr of capacity it sold.  

Gas will be sourced through interstate pipelines and pre-processed onshore in the Louisiana, Mississippi, and Alabama region.

According to GLS, the LM9000 gas turbine "leverages scale to provide effective LNG solutions, thanks to its higher power output on a smaller footprint, its best-in-class efficiency and the latest dry low emission technology."

GLS was established in 2013 and took the project over from Freeport McMoRan Energy in 2016. MPEH was previously permitted by the Maritime Administration as an LNG import facility, a plan made redundant by the US shale gas revolution.