Texas LNG Secures 20-Year LNG Agreement with EQT

Texas LNG Brownsville LLC and EQT Corporation have executed a definitive 20-year tolling agreement for natural gas liquefaction services for two million metric tons per annum (mtpa) of liquefied natural gas (LNG).

The agreement solidifies the two heads of agreement (HOA) signed by Texas LNG and EQT earlier this year, the Glenfarne Energy Transition, LLC subsidiary said in a news release.

“Glenfarne’s partnership with EQT will bring low-emission natural gas to transitioning and emerging markets, powering the globe’s phase out of legacy, carbon-intensive fuels,” Brendan Duval, Glenfarne CEO and Founder and Co-President of Texas LNG, said. “Beyond this partnership with EQT, Texas LNG is actively converting its other HOAs into definitive agreements in preparation for a final investment decision".

“Converting our HOA with Texas LNG to a definitive tolling agreement brings us one step closer to unleashing EQT’s reliable, low emissions natural gas on the global stage,” Toby Rice, President and CEO of EQT, said. “We stand ready to deliver supply to growing LNG markets, helping to strengthen energy security and reduce global emissions via foreign coal displacement”.

Texas LNG is a 4-mtpa LNG export facility to be constructed in the Port of Brownsville, Texas. Texas LNG is “led by an experienced team committed to creating one of the cleanest, lowest emitting LNG export facilities in the world through electric motor drives,” according to the company’s website. Texas LNG will begin construction in 2024 and begin commercial operations in 2028.

Earlier in the month, Texas LNG said it signed a non-binding HOA with an affiliate of an undisclosed top-tier credit-rated market participant for LNG.

The HOA is for a long-term LNG free-on-board (FOB) sale and purchase agreement (SPA) for 0.5 mtpa of LNG from Texas LNG, the company said in a separate news release.

Texas LNG is in advanced negotiations with several potential offtakers for the remaining volume of the project, according to the release.

Glenfarne Energy Transition, a developer, owner, and operator of energy transition infrastructure, is the majority owner and managing member of Texas LNG. The Glenfarne Energy Transition LNG portfolio also includes the 8.8-mtpa Magnolia LNG export facility under development in Lake Charles, Louisiana.

In April, Texas LNG signed a second HOA for natural gas liquefaction services for an additional 1.5 million tons per annum (mtpa) of LNG over 20 years with EQT Corporation.

Texas LNG also signed an offtake agreement with Gunvor Group’s subsidiary in Singapore for 500,000 metric tons per annum in March.

Further, Texas LNG in February selected Gulf LNG Tugs of Texas, LLC to build, deliver, and operate tugboats under a long-term agreement to assist vessels arriving at its Brownsville LNG facility in Texas.

The tugboats will be “among the most modern, low-emission tugboats available to serve a facility of Texas LNG’s size,” the company said in an earlier statement.

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