Tax reduction brings funding leeway for Texas LNG project

Glenfarne Energy Transition’s liquefied natural gas (LNG) project in Texas has received a county tax abatement, providing financial flexibility for the upcoming construction of the natural gas export facility.

The tax abatement for the 4-million tonnes per annum (MTPA) LNG export terminal was received from Cameron County Commissioners Court under Texas Tax Code Chapter 312 following a four-to-one vote. This is expected to enable funding for additional services and infrastructure in the area.

Co-President of Texas LNG, Vlad Bluzer, noted: “We appreciate the Cameron County Commissioners Court’s approval, which recognizes Texas LNG’s environmentally sensitive design, along with the significant economic benefits and jobs this facility will create for the local community.”

The construction of the facility on the north shore of the Port of Brownsville in Texas is slated to begin later this year, with commercial operations anticipated to follow suit in 2028. In March, the firm shared that it received sufficient expressions of interest from project finance banks to move to the execution phase of project financing.

According to Texas LNG, the electric motor compression driven by renewable power it plans to use in the liquefaction process will result in 50% fewer emissions than in other U.S. LNG export projects.

While construction has yet to start, the terminal has sold more than half its permitted capacity. Pittsburgh-based EQT first signed a deal for 0.5 MTPA of tolling capacity in January, followed by a second agreement for an additional 1.5 MTPA in April.

Combined with the announced offtake agreement with Gunvor for 0.5 MTPA of LNG, this means that 1.5 MTPA is left until the terminal has reached its fully permitted capacity.