Texas LNG and Enbridge sign pipeline agreement
Texas LNG Brownsville, developing an LNG export terminal in South Texas, has signed a long-term pipeline gas supply agreement with Enbridge.
Texas LNG Brownsville is a controlled subsidiary of Glenfarne Group. It is developing a 4 million tonnes per annum (mtpa) LNG export terminal in the Port of Brownsville, South Texas.
Enbridge, a North American energy infrastructure company, now executed a pipeline transportation precedent agreement. The deal specifically refers to the expansion of the Valley Crossing Pipeline (VCP). Under the deal, Enbridge will deliver approximately 720 million cubic feet per day of natural gas to Texas LNG’s facility.
The parties signed the deal for a term of at least 20 years.
VCP consists of a 160-mile pipeline originating at Agua Dulce and extending to the Port of Brownsville. So, a ten-mile lateral will now extend the pipeline to Texas LNG’s facility. This is in addition to the compression facilities on the existing pipeline.
Moreover, VCP’s pipeline header interconnects with ten gas pipeline systems with a total receipt capacity of 7 bcf per day. The compression facilities at Agua Dulce will use electric motors, thus reducing CO2 emissions.
“We can leverage Enbridge’s leading natural gas pipeline expertise to safely transport responsible natural gas to our ‘green by design’ LNG facility,” said Vivek Chandra, CEO of Texas LNG, in conclusion.
“Enbridge is committed to the development and advancement of the VCP as it serves Texas LNG and helps the facility meet global LNG demand,” added Bill Yardley, Enbridge’s executive vice president. “We welcome the opportunity to expand our pipeline solutions in support of LNG efforts.”
Texas LNG project FID in 2022
Glenfarne is a developer, owner, and operator of energy transition infrastructure. Through its controlled subsidiaries, is the managing member and majority owner of Texas LNG.
Glenfarne’s CEO Brendan Duval said, “The execution of this agreement is the next of several important milestones Texas LNG will achieve as the facility moves toward a final investment decision. Our agreement with Enbridge helps us accomplish our strategy of delivering LNG to our own gas-consuming projects around the world and to third-party customers.”
Therefore, Texas LNG expects to achieve the final investment decision (FID) in 2022 and commercial operations in 2026.
The agreement is subject to routine conditions precedent and other industry-standard provisions.
Texas LNG says its other strengths include:
- efficient modular construction design;
- transparent competitive pricing structure;
- lower-carbon “green” LNG resulting from usage of more efficient electrical drive motors rather than gas-fired engines to drive the liquefaction compressors.
The 4 mtpa capacity of the facility fills the need of LNG customers seeking smaller contracted volumes to diversify their gas supply portfolio.