Pangea LNG will be authorized to export up to 8 million metric tons per annum (mtpa) of LNG produced from domestic gas fields for a 25-year term commencing on the date of its first export. That amount is equal to 1.09 Bcf/day of natural gas.

Pangea LNG has also filed an application with DOE requesting authorization to export LNG to any country with which the U.S. does not have a free trade agreement in effect. That application, which was filed in December, is pending.

“Approval by the US DOE is a positive step forward for this project, which represents a significant investment in the development of the LNG market in the U.S.,” said John Godbold, Pangea LNG project director. “Exporting LNG will help stabilize U.S. natural gas prices, grow and sustain drilling and production jobs, and stimulate additional investment in developing the country’s gas reserves.”

DOE approval of FTA authorization is part of the regulatory process necessary to develop Pangea LNG’s new LNG export terminal on a 550-acre site. The site is located on the 45-foot deep La Quinta Ship Channel which is part of the Port of Corpus Christi, the sixth busiest U.S. seaport in terms of tonnage.

The South Texas LNG Project is subject to federal, state and local regulatory approvals with the Federal Energy Regulatory Commission (FERC) acting as the lead federal agency. Pangea will begin the FERC pre-filing process by the second quarter of 2013 and expects the project to be in operation by at least 2018.

FTA countries covered by the DOE authorization include Republic of Korea, Australia, Bahrain, Canada, Chile, Colombia, Dominican Republic, El Salvador, Guatemala, Honduras, Jordan, Mexico, Morocco, Nicaragua, Oman, Panama, Peru and Singapore.

Pangea LNG B.V. is a holding company with two major LNG export projects under development – the South Texas LNG Export Project on the Texas Gulf Coast and the Tamar Project in the Eastern Mediterranean. Pangea LNG is a developer of liquefaction projects which are designed to accelerate and support the monetization of gas reserves.

Additional Information

Pangea LNG (North America) Holdings, LLC is a Pangea LNG B.V. company. Pangea LNG brings together a team that was responsible for generating the innovations that are at the foundation of the floating LNG sector. Pangea LNG B.V. is owned by NextDecade International, D&H Solutions AS and DSME. For more information, please visit www.PangeaLNG.nl.

Industry Contact: John Godbold, Project Director, Pangea LNG; email:
SouthTexasLNG@PangeaLNG.nl

Media Contact: Tom Eisbrenner, Eisbrenner Public Relations; (248) 554-3500; email:
teisbrenner@eisbrenner.com

This is another major step in the process of developing a new LNG export terminal on a 550-acre site fronting the north shore of Corpus Christi Bay.  On November 29, Pangea filed an application with DOE seeking export authority to countries with which the U.S. has Free Trade Agreements.  Pangea is seeking authority to export up to 8 million metric tons per year of LNG, equal to approximately 400 billion cubic feet per year of natural gas.

The South Texas LNG Project is being designed in two phases, each capable of producing 4 million tons per year and storing approximately 250,000 cubic meters of LNG.  Design options are being evaluated and the outcome is expected to consist of both land-based and floating components. The project is subject to federal, state and local regulatory approvals with the Federal Energy Regulatory Commission (FERC) acting as the lead federal agency.  Pangea’s schedule calls for the project to be in operation by at least 2018.

Natural gas for the South Texas Project will be supplied by customers through an associated pipeline that will likely connect to nine major interstate and intrastate transmission pipelines.  As a result, the feed gas for the facility can be sourced from almost any point on the U.S. natural gas pipeline grid through direct physical delivery or by displacement, including gas from the Eagle Ford Shale and conventional production in South Texas.

“Filing our FTA and non-FTA applications with DOE are major initial milestones for this project,” said John Godbold, Pangea project director.   “Our design optimization is ongoing and that work will be sufficiently complete so that we can begin the FERC prefiling review process in the Spring of 2013.”

Pangea LNG B.V. is a holding company with two major LNG export projects in the works – the South Texas LNG Export Project on the Texas Gulf Coast and the Tamar Project in the Eastern Mediterranean.  Pangea LNG is a developer of floating and land-based liquefaction projects which are designed to accelerate and support the monetization of gas reserves, particularly those that are stranded or have limited market access.  As announced previously, Pangea’s subsidiary Levant LNG Marketing and Tamar Partners have executed a Cost Sharing Agreement to jointly participate in the cost of developing the front end engineering and design (FEED) for the Tamar Project.  It will be a self-contained floating liquefaction and storage facility permanently moored 60 miles offshore in Israeli waters.  The Tamar liquefaction vessel will produce LNG for export from the Tamar and Dalit fields where major natural gas reserves have been proven in recent years.

Kathleen Eisbrenner, Pangea LNG’s chief executive officer, said Pangea sees opportunity in deployment of flexible, scalable liquefaction systems that can respond to worldwide demand for LNG.  She said U.S. LNG exports will provide significant economic benefits to the nation’s economy and to states and communities where natural gas is produced.

Additional Information

Pangea LNG (North America) Holdings, LLC is a Pangea LNG B.V. company. Pangea LNG brings together a team that was responsible for generating the innovations that are at the foundation of the floating LNG sector. Pangea LNG B.V. is owned by NextDecade International, D&H Solutions AS and DSME. For more information, please visit www.PangeaLNG.nl.

Industry Contact:  John Godbold, Project Director, Pangea LNG; email: SouthTexasLNG@PangeaLNG.nl

Media Contact: Tom Eisbrenner, Eisbrenner Public Relations; (248) 554-3500; email: teisbrenner@eisbrenner.com

Pangea has filed an application with the U.S. Department of Energy seeking authority to export up to eight million metric tons per year of liquefied natural gas to all current and future countries with which the U.S. has a Free Trade Agreement and intends to quickly file a similar application for LNG exports to any country with which the U.S. does not have a Free Trade Agreement in effect.

The project is located in the city of Ingleside on the La Quinta Ship Channel which is part of the Port of Corpus Christi. The project will be known as South Texas LNG Export.

South Texas LNG Export will be located on a portion of a 550-acre site which includes half a mile of frontage on the federally-maintained deepwater ship channel.  Pangea has had the site under option since June. A separate pipeline project would connect the LNG plant to the extensive interstate and intrastate natural gas transmission pipeline network in South Texas.

Pangea LNG is an energy project and investment company involved in the development of LNG liquefaction and storage projects around the globe including an offshore floating LNG liquefaction project in the Eastern Mediterranean Sea.

John Godbold, project director for Pangea LNG, said an intensive project feasibility and preliminary design process is now underway on the South Texas project. The assessment is being conducted by CB&I, a leading international engineering, procurement and construction company.

The South Texas LNG Export project will require federal, state and local regulatory approval. The U.S. Federal Energy Regulatory Commission (FERC) is the lead agency in the permitting process. If this process moves forward on schedule the South Texas LNG terminal could be in operation by 2018.

Kathleen Eisbrenner, Pangea LNG’s chief executive officer, said, “We expect there to be several successful LNG export projects on the Texas Coast in the coming years because of the large new natural gas reserves in North America. Exporting LNG will help stabilize U.S. natural gas prices, sustain drilling and production jobs in South Texas, and stimulate investment in developing additional gas reserves.”

The South Texas project is the second LNG liquefaction project being developed by Pangea LNG companies. Levant LNG Marketing, a Pangea subsidiary, completed an extensive pre-FEED (preliminary front end engineering design), is finalizing commercial agreements and will start FEED engineering shortly on the Tamar Project which will export LNG from the Tamar and Dalit fields in the Eastern Mediterranean, 60 miles offshore from Israel. That facility will be a permanently moored offshore floating natural gas liquefaction vessel with onboard LNG storage. The self-contained operation will be the first floating LNG export project in the Mediterranean basin. A final investment decision on the Tamar Project is expected by the second half of 2013.

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Additional Information

Pangea LNG (North America) Holdings, LLC is a Pangea LNG B.V. company. Pangea LNG B.V. is working on projects worldwide that have the potential to accelerate and support development of natural gas reserves. This is being achieved primarily through use of floating liquefaction vessel technology. Pangea LNG brings together a team that was responsible for generating the innovations that are at the foundation of the floating LNG sector. Pangea LNG B.V. is owned by NextDecade International, D&H Solutions AS and DSME. For more information, please visit www.PangeaLNG.nl.

Industry Contact: John Godbold, Project Director, Pangea LNG; email: SouthTexasLNG@PangeaLNG.nl

Media Contact: Tom Eisbrenner, Eisbrenner Public Relations; (248) 554-3500; email: teisbrenner@eisbrenner.com

The Tamar Partnership will participate in the cost of developing the project front end engineering and design (FEED) for a permanently moored offshore floating natural gas liquefaction vessel with onboard storage. Pangea LNG and Tamar Partners anticipate launching FEED by end of 2012 and making a final investment decision by the second half of 2013.

The floating liquefaction (FLNG) midstream solution is being developed by Pangea LNG, an LNG development and investment company owned by Daewoo Shipbuilding and Marine Engineering (DSME), Next Decade International and D&H Solutions AS.  Pangea LNG is a floating LNG liquefaction and storage project developer now working on projects around the globe that will connect gas suppliers to the world’s most important LNG demand markets.

The Tamar Partnership includes Noble Energy Mediterranean Ltd, Isramco Negev 2 Limited Partnership, Delek Drilling Limited Partnership, Avner Oil Exploration Limited Partnership, and DorGas Exploration Limited Partnership.  These companies are the owners and producers involved in the discovery of significant natural gas resources in the Tamar and Dalit fields where development drilling is underway.

Gerhard Ludvigsen, a founding member of the Pangea LNG board of directors, said “the Tamar project embraces the entire value chain and balances the risk positions for the owners of hydrocarbons, the off takers and the midstream technology provider.

“The Pangea business model offers the opportunity for all stakeholders to take part in the value enhancement from gas production through the FLNG/midstream solution to the final off take of LNG.  Pangea LNG opens the potential for national oil companies and owners of small to medium size gas reserves to monetize stranded gas and take part in the value creation in the entire value chain.”

Pangea LNG continues to work on off-take agreements for LNG production from the Tamar project. Pangea LNG has already executed several letters of intent with potential off takers and is in the final stage of negotiations for the long term sales and purchase agreement.

The Tamar framework agreement represents an important step in the development of what will be the first floating LNG liquefaction project in the Mediterranean basin. The Tamar and Dalit fields are located in the Levantine basin in Israeli waters.

“The Eastern Mediterranean gas fields provide a particularly good location for deploying an offshore floating LNG solution,” said Kathleen Eisbrenner, Pangea LNG’s chief executive officer. “The reserves are large, the climate is moderate and the location offers efficient access to significant LNG markets.”

O.K. Shin, Team leader of DSME Corporate Strategy Team, noted that the vessel-mounted liquefaction system being designed will take advantage of the efficiencies of the DSME shipyard construction environment and the best practices the company has developed during many years of LNG and process vessel construction.

Pangea LNG brings together a team that generated the innovations that are at the foundation of the floating LNG sector.  DSME, the majority owner of Pangea, is one of the world’s leading shipbuilders and a contractor for major energy companies providing them with offshore platforms, drilling rigs and floating production units. The company builds special purpose vessels and specializes in LNG carriers.  It constructed nine of the 11 floating LNG regasification vessels now in service.

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Additional Information

Pangea LNG (North America) Holdings, LLC is a Pangea LNG B.V. company.  Pangea LNG B.V. is working on projects worldwide that have the potential to accelerate and support development of natural gas reserves.  This is being achieved primarily through use of floating liquefaction vessel technology. Pangea LNG brings together a team that was responsible for generating the innovations that are at the foundation of the floating LNG sector.  Pangea LNG B.V. is owned by NextDecade International, D&H Solutions AS and DSME.  For more information, please visit www.PangeaLNG.nl.

Contact: Tom Eisbrenner

                  Eisbrenner Public Relations

                  teisbrenner@eisbrenner.com

                  248.554.3500