Glenfarne Inks Deal to Supply LNG to Gunvor Singapore from Texas Project

Glenfarne Energy Transition LLC’s Texas LNG export terminal project has signed an offtake agreement with Gunvor Group’s subsidiary in Singapore for 500,000 metric tons per annum, the two parties said.

Under the 20-year heads of agreement (HOA), the volumes of liquefied natural gas (LNG) to be shipped to Gunvor Singapore Pte. Ltd. by Texas LNG Brownsville LLC, the Gunvor subsidiary overseeing the project, will be free on board, according to a joint statement.

“With the previously announced commencement of the execution phase of the project financing process, this agreement aligns with our plan to take a final investment decision on Texas LNG this year”, Texas LNG co-president Vlad Bluzer said in a statement.

Planned to produce four million metric tons per annum of LNG in the Port of Brownsville, the project has now attracted nearly $1 billion in investment, following Glenfarne’s LNG tolling agreement with EQT Corp. and partnership agreements with ABB, Baker Hughes Co. and Gulf LNG Tugs of Texas, according to the joint news release.

“We’re thrilled to welcome Gunvor to our portfolio of customers, connecting Texas LNG, one of the lowest-emitting liquefaction facilities in the world, with global economies in need of reliable, sustainable energy”, Texas LNG co-president Brendan Duval, chief executive and founder of Glenfarne, said.

Kalpesh Patel, co-head of LNG trading at Gunvor, commented, “Gunvor continues to support US LNG export projects, unlocking new supplies for the global energy market and providing energy security especially to our customers in Europe and Asia”.

Gunvor Singapore earlier agreed to an offtake volume from the Louisiana project of Delfin LNG, a company of Delfin Midstream Inc., under tripartite deals that also involved Chesapeake Energy Corp. and included a sale and purchase agreement (SPA).

“Under the SPA, Chesapeake will purchase approximately 0.5 million tonnes of LNG per annum from Delfin at a Henry Hub price and contract targeted start date in 2028 then deliver to Gunvor on an FOB [free on board] basis with the sales price linked to the Japan Korea Marker for a period of 20 years”, Oklahoma City-based oil and gas producer Chesapeake said in a news release February 13. “These volumes will represent 0.5 mtpa [million metric tons per annum] of the previously announced up to 2 mtpa HOA with Gunvor”.

Delfin LNG is a deepwater port for LNG export proposed to rise near the Gulf of Mexico. It is planned to have four floating LNG vessels with a combined capacity of 13.3 million metric tons per annum (MMtpa).

Delfin LNG and Gunvor Singapore earlier signed an agreement for the former to supply the Gunvor subsidiary 0.5 MMtpa to one MMtpa free on board over 15 years, as announced by Houston, Texas-based Delfin Midstream November 27.

Singapore is not expected to be affected by the Biden administration’s decision early this year to pause pending decisions on LNG export to countries with no free trade agreement (FTA) with the United States. The city-state has an FTA with the U.S. in force since 2004, according to the U.S. Trade Representative Office.

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