What Is FEL-1 - Why Does It Matter?

At United Energy LNG, we’re building something different—something faster, cleaner, and smarter in the world of natural gas. And as we prepare to launch FEL-1 (Front-End Loading Phase 1) on three of our upcoming small-scale LNG projects, we want to pull back the curtain a bit and explain what that means—and why it’s such a big milestone for our company and our shareholders.

First, what is FEL-1?

FEL-1 stands for Front-End Loading – Phase 1, and it’s the first formal step in bringing an energy project to life. Think of it like the “blueprint” phase—where a vision starts becoming a detailed plan.

During FEL-1, we answer the fundamental questions:

 What exactly will this LNG plant look like?

 Where will it go?

 What’s the best technology to use?

 How much will it cost?

 Who are the customers, and how do we get the gas to them?

It’s a technical and commercial deep dive, combining engineering, market validation, permitting pathways, site-specific analysis, and logistics planning. The goal is to identify the project’s basic configuration, scope, and feasibility—with enough confidence to move to the next phase of development.

So… what comes after FEL-1?

FEL-1 is part of a three-stage development process known in the energy world as the FEL / FEED pathway:

1. FEL-1 – Conceptual planning and feasibility

2. FEL-2 – Preliminary design and cost analysis

3. FEL-3 – Final design and project execution planning

4. FEED – Front-End Engineering Design (sometimes used interchangeably with FEL-3)

At each step, the level of detail increases—and the level of risk goes down. By the time a project reaches the end of FEL-3 or FEED, we’ll know exactly how much it will cost, how long it will take to build, and who will buy the LNG. This is what gives investors, lenders, and strategic partners the confidence to step in with real dollars.

Why is FEL-1 such a big deal?

Because it separates ideas from action. Lots of companies talk about building LNG projects. Far fewer get to FEL-1. Why? Because FEL-1 requires real investment—of time, money, and engineering horsepower. It means you’ve lined up the land, gathered the data, and you're ready to move from theory to execution. For United Energy LNG, entering FEL-1 on three separate projects signals something powerful:

✅ We’ve secured viable sites

✅ We’ve scoped the opportunity

✅ We’re preparing to build

It’s also the first major point where customers, partners, and regulators start getting involved in earnest.

What should shareholders expect?

In the weeks and months ahead, you’ll hear a lot more about FEL-1 milestones:

 Environmental and site assessments

 EPC (engineering, procurement, construction) partner selection

 Permitting and local agency engagement

 Preliminary capital estimates and schedules

 Of course, conversations with off-takers—those are the customers who’ll be buying the LNG once the plants go live

Each of these pieces helps de-risk the project and get us closer to FID—Final Investment Decision—the point at which construction begins.

Bottom line:

FEL-1 is where great LNG projects start becoming real. For United Energy LNG, it’s the first signal flare that our strategy is working—and our projects are advancing with discipline and momentum.

We’re not just planning—we’re progressing. And that’s exactly what shareholders should want to see.

Want to follow our FEL journey step-by-step?

Let’s build something big—by thinking small. —United Energy LNG Team

Kimberly StillwagonJuly 10, 2025