Exciting Developments at Texas LNG: Paving the Way for a Sustainable Future
November 4, 2024: Big news is coming out of the Port of Brownsville, Texas! Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition, LLC, is gearing up to construct a groundbreaking liquefied natural gas (LNG) export terminal capable of delivering an impressive four million tonnes per annum (MTPA) of LNG. In a strategic move, Texas LNG has chosen Kiewit, through its subsidiaries Kiewit Engineering Group Inc. and Kiewit Energy Group Inc., to spearhead the engineering, procurement, and construction (EPC) of this project under a lump-sum turnkey (LSTK) arrangement. The collaboration will ensure swift progress towards the crucial pre-final investment decision (FID) engineering—key to propelling the project forward, especially after Texas LNG recently secured enough offtake agreements to support a FID.
Brendan Duval, CEO and Founder of Glenfarne, along with Co-President of Texas LNG, expressed enthusiasm about the partnership: “We witnessed overwhelming interest from elite contractors eager to join this project. Kiewit’s proposal stood out for its visionary approach and proven expertise on the US Gulf Coast, leaving a significant impression on our team. We are eager to collaborate with them.”
Eric Gutierrez, Executive Vice President of Kiewit Energy Group Inc., echoed this excitement, stating, “We are thrilled to partner with Glenfarne on this essential LNG project. Our extensive track record in delivering intricate, integrated LNG EPC projects for clients gives us a unique edge. We appreciate the chance to work with a client who shares our commitment to developing vital energy infrastructure in the U.S.”
As the majority owner and managing member of Texas LNG, Glenfarne Energy Transition is at the forefront of energy transition infrastructure development. The company’s LNG portfolio also features the Magnolia LNG export facility in Lake Charles, Louisiana, with a capacity of 8.8 MTPA.
July 23, 2024: Texas LNG Brownsville LLC has further solidified its position in the market by executing a definitive 20-year tolling agreement with EQT Corporation for natural gas liquefaction services amounting to 2 MTPA of LNG. This milestone builds on two Heads of Agreement (HOA) established between Texas LNG and EQT earlier this year.
“Glenfarne’s collaboration with EQT aims to deliver low-emission natural gas to transitioning and emerging markets, playing a crucial role in phasing out legacy, carbon-intensive fuels,” stated Brendan Duval. “In addition to this partnership, Texas LNG is diligently converting other HOAs into definitive agreements as we gear up for a final investment decision.”
EQT’s President and CEO, Toby Z. Rice, remarked, “Transitioning our HOA with Texas LNG into a definitive tolling agreement is a significant step towards unleashing EQT’s reliable, low-emission natural gas on the global market. We are poised to supply growing LNG markets, enhancing energy security and displacing foreign coal to reduce global emissions.”
Moreover, Texas LNG has successfully secured the majority of its project’s remaining offtake agreements, including a recent commitment from a top-tier, credit-rated market participant for 0.5 MTPA announced this month.
July 2, 2024: In another major stride forward, Texas LNG signed a non-binding Heads of Agreement (HOA) with an affiliate of a top-tier credit-rated market participant for a long-term LNG free-on-board (FOB) sale and purchase agreement (SPA) for 0.5 MTPA of LNG.
“This agreement places Texas LNG on the brink of a full sell-out, and we are eager to finalize our offtake partnerships shortly,” Duval noted, underscoring the momentum building around the project. Texas LNG is currently engaged in advanced negotiations with several potential offtakers for the remaining volumes.
June 6, 2024: Texas LNG received a significant boost with the approval of a Texas Tax Code Chapter 312 tax abatement from Cameron County. The abatement was sanctioned by a four-to-one vote from the Cameron County Commissioners Court, promising enhanced financial flexibility and funding to improve services and infrastructure in the area.
“We appreciate the Cameron County Commissioners Court’s support, which acknowledges Texas LNG’s environmentally sensitive design and the substantial economic benefits and job opportunities our facility will create for the local community,” expressed Vlad Bluzer, Co-President of Texas LNG. “We are dedicated to being a positive and transparent partner for Cameron County, and this vote reflects strong backing from local leaders.”
This tax abatement approval is just the latest development as Texas LNG prepares to commence construction later this year.
April 23, 2024: Texas LNG has expanded its partnership with EQT Corporation by signing a second Heads of Agreement (HOA) for an additional 1.5 MTPA of natural gas liquefaction services over 20 years. This agreement raises Texas LNG’s total HOA volume with EQT to 2 MTPA, with final terms still to be negotiated in a definitive tolling agreement. With this latest development and Texas LNG’s prior agreement with Gunvor, only 1.5 MTPA of additional offtake remains to reach Texas LNG’s fully permitted capacity.
“We’re proud to strengthen our partnership with EQT,” stated Brendan Duval. “Texas LNG has successfully sold over half of its permitted capacity. With this announcement and additional offtake sales imminent, we anticipate reaching financial close and commencing construction in the fourth quarter of this year.”
Earlier in January, Texas LNG and EQT formed an initial agreement for 0.5 MTPA of tolling capacity.
March 18, 2024: Exciting news came as Texas LNG signed a Heads of Agreement (HOA) with Gunvor Group, via its subsidiary Gunvor Singapore Pte Ltd, for a 20-year LNG FOB sale and purchase agreement (SPA) for 0.5 MTPA of LNG from Texas LNG.
“We’re thrilled to welcome Gunvor into our customer portfolio, linking Texas LNG, one of the world’s lowest-emission liquefaction facilities, with global economies in dire need of reliable, sustainable energy,” said Brendan Duval.
“Aligning with our project financing execution phase, this agreement is a crucial step towards our final investment decision on Texas LNG this year,” added Vlad Bluzer, Co-President of Texas LNG.
Kalpesh Patel, Co-Head of LNG Trading at Gunvor, expressed, “We are delighted to have executed this agreement, becoming a foundation buyer for the Texas LNG project. Gunvor is committed to supporting U.S. LNG export projects, unlocking new supplies for the global energy market, and enhancing energy security for our clients in Europe and Asia.”
March 14, 2024: Texas LNG is making significant strides in its financing phase. The company announced today that it has garnered enough expressions of interest from leading project finance banks to progress to the execution phase of project financing, following the completion of necessary permitting and offtake arrangements. Glenfarne Energy Transition, LLC has appointed Latham & Watkins as Borrower’s counsel and Milbank as Lenders’ counsel for the issuance.
These lenders have been instrumental in supporting Glenfarne, having led over $4 billion in financing for its businesses over the past decade, facilitating the acquisition and construction of various energy transition assets. Notably, these banks have participated in approximately $44 billion of project finance debt within the U.S. LNG sector over the last 24 months.
“Texas LNG’s financing consortium will comprise the world’s leading institutions that recognize the project’s advantages and Glenfarne’s stellar history of building energy transition infrastructure,” commented Brendan Duval.
This announcement follows Texas LNG’s recent HOA with EQT Corporation for 0.5 MTPA of LNG liquefaction services and partnerships with Baker Hughes and ABB, which together represent over half a billion dollars in equipment selections for Texas LNG.
Expect the first LNG exports from Texas LNG to set sail by 2028!
February 16, 2024: Texas LNG has selected Gulf LNG Tugs of Texas, LLC—a consortium consisting of Suderman & Young Towing Company, Bay-Houston Towing, and Moran Towing Corporation—to build, deliver, and operate tugboats under a long-term agreement. These tugboats will assist LNG carriers arriving at the facility and will feature modern, low-emission designs in line with Texas LNG’s “Green by Design” commitment.
Brendan Duval remarked, “The Texas LNG team undertook a thorough evaluation to find a marine service provider that aligns with our environmental values and delivers reliable, cost-effective services. We’re excited to have Gulf LNG Tugs as our partner, bringing jobs and local content to the Texas LNG and the Rio Grande Valley community.”
Gulf LNG Tugs’ partners added, “We are proud to be the exclusive tug operator for LNG vessels in another successful LNG project at the Port of Brownsville and look forward to expanding our operations and presence in the Rio Grande Valley.”
This news comes on the heels of Texas LNG’s HOA with EQT Corporation for 0.5 MTPA of LNG liquefaction services and partnerships with Baker Hughes and ABB for terminal development.
January 25, 2024: Texas LNG has successfully received its Section 10 and Section 404 permits from the U.S. Army Corps of Engineers (USACE) and Texas Commission on Environmental Quality (TCEQ), clearing a crucial regulatory hurdle for the facility. With these permits in hand, Texas LNG is poised to advance construction planning and finalize contracts with partners for critical terminal operations.
Brendan Duval stated, “Our team has diligently worked to develop this project while minimizing environmental impact and maximizing local benefits, including job creation, economic growth, and energy security. The timely granting of these permits reflects the thoroughness of our approach and the commitment of local stakeholders to support our mission.”
The Texas LNG export facility, once operational, will be designed to meet or exceed the highest environmental standards, including advanced emissions controls.
For media inquiries, please contact:
Marketing Department
Texas LNG Brownsville LLC
Email: press@texaslng.com
Source: Texas LNG Press Release
