GLNG: Texas LNG moves towards FID following new offtake agreement

Texas LNG Brownsville has secured another offtake agreement giving it sufficient contractual commitments to move ahead with the final investment decision (FID) the company revealed on September 11.

The firm, which is a subsidiary of Glenfarne Energy Transition, did not reveal the identity of its newest customer, but affirmed that a heads of agreement (HOA) for a long-term LNG sales and purchase agreement (SPA) had been signed with a “highly experienced, investment-grade” LNG player.

For Texas LNG, it marks the latest addition to a string of secured customers that include Gunvor, EQT Corporation and Macquarie Group. The deals with Gunvor and Macquarie Group will enable the supply of 0.5mn tonnes per year. The firm also signed two separate deals with EQT worth 0.5mn tpy and 1.5mn tpy.

The Brownsville facility will boast a production capacity of 4mn tpy and will be constructed on a 625-acre site. The export plant will benefit from access to the lost-cost Eagle Ford and Permian Basin gas reserves.

Additionally, the LNG export terminal will boast green credentials including an electric motor compression powered by renewable energy, significantly reducing its carbon footprint.

“We are grateful that our customers have chosen Texas LNG, designed to be the lowest emitting LNG facility in the United States, to make a significant investment in the global energy transition,” Glenfarne CEO and founder Brendan Duval said.

“Our strong and diversified customer base, which fortifies Texas LNG’s FID [ability to obtain finance], now includes the largest producer of natural gas in America, a leading global financial institution, one of the world’s largest independent commodities traders, and a major global LNG player,” added Duval, who also serves as co-president of Texas LNG.

The company is targeting beginning construction before the end of the year with an aim of commencing commercial operation in 2028.

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