Texas LNG inks 20-year LNG offtake deal with Gunvor

Texas LNG, a four million tonnes per annum (MTPA) liquefied natural gas (LNG) export terminal to be constructed in the Port of Brownsville, Texas, and a subsidiary of Glenfarne Energy Transition, has signed a heads of agreement (HOA) with Gunvor Group through its subsidiary Gunvor Singapore for a 20-year LNG FOB sale and purchase agreement (SPA) for 0.5 MTPA of LNG from Texas LNG.

Brendan Duval, CEO and Founder of Glenfarne Energy Transition and Co-President of Texas LNG, stated: “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.”

Kalpesh Patel, Co-Head of LNG Trading of Gunvor, noted: “We are pleased to have executed this agreement and become one of the foundation buyers of the Texas LNG project. 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.”

To note, Texas LNG is expected to begin construction in 2024, commencing commercial operations in 2028.

Glenfarne is Texas LNG’s majority owner and managing member, while Samsung Engineering owns a minority equity interest and is leading the delivery of the facility along with Technip Energies U.S.

This new offtake agreement follows Texas LNG’s recent announcement that it has received sufficient expressions of interest from project finance banks to move to the execution phase of project financing.

Commenting on the deal with Gunvor, Vlad Bluzer, Co-President of Texas LNG, referred back to the financing process and said: “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.”

In 2024, Texas LNG also selected Gulf LNG Tugs of Texas to build, deliver and operate tugboats under a long-term agreement to assist LNG carriers arriving at the LNG export facility.

Furthermore, it signed a heads of agreement (HOA) with Pittsburgh-based EQT Corporation for natural gas liquefaction services, anticipating the finalization of a definitive 15-year LNG tolling agreement for 0.5 MTPA of LNG from the first train of Texas LNG terminal.

In late 2023, Glenfarne selected Baker Hughes to supply gas compression technology equipment for the terminal, noting that the agreement facilitates Texas LNG’s “Green by Design” approach. Baker Hughes also has a framework agreement to make a strategic pre-FID investment in the project’s late-stage development.

According to Texas LNG, these partnerships total nearly one billion dollars of investment into the project.