Parallax Energy selects Louisiana Calcacieu Parish
The newly established company Parallax Energy LLC (Parallax) has chosen a site in Louisiana Calcacieu Parish along the US Gulf Coast to build and operate its first project, the Live Oak LNG as liquefied natural gas (LNG) export terminal.
In a context where large companies struggle with giant projects costs in front of lowering oil and gas prices, Parallax illustrates how small or mid-cap companies find their way with integrated upstream – midstream business model to reduce the route to markets and related costs and risks.
From his experience with BG Group Trunkline LNG project in Lake Charles, Martin Houston and his team are aware of the challenges to run through the different approval processes and intend to handle them on fast track.
Parallax Live Oak LNG project reaches FEED stage
This mid-size LNG project is estimated to require $2 billion capital expenditure covering:
– LNG plant
– LNG storage tanks
– Jetty and port facilities
With this limited budget the Live Oak LNG project should have anyway a 5 million tonne per year (t/y) production capacity.
The storage tanks should hold 130,000 cubic meters of gas.
To build it up, Parallax took an option on a 350 acres site on Calcacieu River west bank.
On second quarter 2015, Parallax will proceed with the submission of the Pre-Filling Request as the first step for the Federal Energy Regulatory Commission (FERC) Approval Process.
Based on the current schedule, Parallax is expecting to start the front end engineering and design (FEED) on second half 2015 in order to award the engineering, procurement and construction (EPC) contract at the end of 2016 for a completion of the Live Oak LNG project in Calcacieu Parish by 2019.