Texas LNG tucks another tolling deal under its belt

Glenfarne Energy Transition’s subsidiary Texas LNG has signed a second heads of agreement (HOA) with Pittsburgh-based EQT Corporation for natural gas liquefaction services.

Illustration; Source: Texas LNG

The agreement includes an additional 1.5 MTPA of liquefied natural gas (LNG) over 20 years and builds on the initial deal for 0.5 MTPA of tolling capacity that the duo announced in January. This brings Texas LNG’s total HOA volume with EQT to 2 MTPA, while final terms remain subject to the negotiation of a definitive 20-year LNG tolling agreement.

Coupled with Texas LNG’s recently announced offtake agreement with Gunvor, an offtake of 1.5 MTPA is left until the terminal has reached its fully permitted capacity of 4 MTPA.

Brendan Duval, Glenfarne CEO, noted: “We are proud to expand our partnership with EQT with today’s announcement. Texas LNG has sold more than half of its permitted capacity. With this announcement with EQT and additional offtake sales to be announced soon, we will reach financial close and the start of construction in the fourth quarter this year.”

The terminal’s majority owner and managing member is Glenfarne, a developer, owner, and operator of energy transition infrastructure, which is also the sole owner and developer of the 8.8 MTPA Magnolia LNG in Lake Charles, Louisiana. 

The construction of the facility on the north shore of the Port of Brownsville in Texas is slated to kick off in late 2024, while commercial operations are expected to start in 2028. According to Texas LNG, the location offers access to a deep-water ship channel close to the Gulf of Mexico and the Panama Canal, providing easy access to global shipping lanes.

The firm explains that its liquefaction process is expected to eliminate most CO2 emissions by using electric motor compression driven by renewable power, enabling the facility’s emission levels to be 50% lower than the ones in other U.S. LNG export projects.

A joint venture between Technip Energies USA and Samsung Engineering is in charge of the project design and delivery, gas compression technology equipment will be supplied by Baker and Hughes, and Gulf LNG Tugs of Texas are in charge of building, delivering, and operating low-emission tugboats for the terminal.

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