Texas LNG starts talks with customers in Eastern Europe, Asia

JAMES PATON

HOUSTON (Bloomberg) -- Texas LNG, a closely held company planning a $1.3 billion LNG project in the U.S., has started talks with potential customers, targeting companies in Eastern Europe, Latin America and Asia.

The Houston-based company, backed by U.S. hedge fund firm Third Point LLC, is seeking to sign initial agreements within three to six months, said CEO Vivek Chandra.

Texas LNG is among companies seeking to follow larger competitors including Houston-based Cheniere Energy Inc. in building gas export plants in the U.S. Texas LNG expects gas shipments from its facility to begin in 2020, a delay from its initial target of 2018, Chandra said.

“The large Asian buyers aren't incentivized to make any deals, and are happy to sit on their hands,” Chandra said. “But at the end of the day there are a lot of emerging buyers in Asia, Europe and Latin America who want gas.”

Texas LNG plans to collect fees to take natural gas and convert it into liquid form for shipment to overseas markets. The company is looking for gas producers willing to sell to LNG customers at prices that are fixed, rather than linked to crude or natural gas, he said.