Texas LNG Nears FID with New Offtake Deal

Texas LNG Nears FID with New Offtake Deal
Texas LNG said it has now secured sufficient volume in offtake commitments needed for the FID.
Image by Suphanat Khumsap via iStock

Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition LLC, has executed another heads of agreement (HOA) with a “highly experienced, investment-grade” LNG player for a long-term LNG sale and purchase agreement.

The deal also means that Texas LNG has now secured sufficient volume in offtake commitments needed for the final investment decision, Texas LNG said. The new offtake adds to the existing agreements with EQT Corporation, Gunvor Group, and Macquarie Group.

“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”, said Brendan Duval, CEO and Founder of Glenfarne Energy Transition and Co-President of Texas LNG. “Our strong and diversified customer base, which fortifies Texas LNG’s FID financeability, 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”.

The Texas LNG export facility is planned to be built on a 625-acre site with access to the prolific low-cost Permian basin and Eagle Ford gas reserves. Once operating at full capacity Texas LNG can produce four million tonnes per annum (MMtpa) of LNG for export.

The facility will deploy electric motor compression driven by renewable power, eliminating most of its CO2 emissions, according to Texas LNG.

Glenfarne Energy Transition’s LNG portfolio also includes the 8.8 MMtpa Magnolia LNG export facility under development in Lake Charles, Louisiana.

To contact the author, email andreson.n.paul@gmail.com


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