CANBERRA: The former Chevron president of natural gas is leading what could become the next major liquefied natural gas export project out of a new Houston headquarters. The problem? “No one realizes we’re here,” said Greg Vesey, the new chief executive of Liquefied Natural Gas Ltd. and retired Chevron executive.
Liquefied Natural Gas Ltd., better known as LNG Ltd., this week received final federal regulatory approval to export LNG and begin building its $4.3 billion Magnolia LNG project south of Lake Charles, La.
However, LNG Ltd. only has 25 percent of the proposed LNG output contracted, and more buyers are needed to finance the beginning of construction. That’s better than most proposed LNG export projects along the Gulf Coast, but not enough. The goal is to start construction in roughly a year and have the project come online in 2021 or, more likely, 2022 , when global LNG demand is forecast to pick up again. “If you want it then, you really need to work with us now,” Vesey said of potential buyers. “We’re getting much richer discussions.”
LNG Ltd. was founded 14 years in Perth, Australia with a focus on developing LNG projects there. The focus eventually shifted to North America largely because of the cheap and ample natural gas supplies from the shale revolution. The goal is building modular natural gas liquefaction facilities, called trains, smaller and cheaper than competing projects. So the company opened a Houston office and eventually made it a dual headquarters. LNG Ltd. only has six employees left in Australia, even though the company still trades on the public stock exchange in Sydney. There’s a team of about 20 people in Houston, including Vesey.
The 35-year Chevron veteran retired in December 2015 and was looking to take on corporate board seats this year. Instead, Vesey, 58, had discussions with the LNG Ltd. board leadership that shifted to the CEO role. In November LNG Ltd. named a new Houston-based chairman, Paul Cavicchi, a veteran of GDF Suez Energy, now called Engie. While a handful of LNG export projects along the Gulf Coast are already under construction in Louisiana, Freeport and Corpus Christi, LNG Ltd. is competing with a so-called second wave of proposed projects in Texas and Louisiana. But only LNG Ltd. thus far has full regulatory approval and is thus “shovel ready.”
