Texas LNG concludes preliminary LNG supply deal with EQT
Texas LNG concludes preliminary LNG supply deal with EQT - Offshore Energy
Texas LNG concludes preliminary LNG supply deal with EQT
Glenfarne Energy Transition’s subsidiary Texas LNG Brownsville has 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.
Brendan Duval, Glenfarne CEO and Founder, said the company is proud to welcome EQT as a customer and partner for Texas LNG, adding: “This is an important milestone for Texas LNG, with additional agreements to be announced in the near-term as we progress towards a final investment decision.”
Texas LNG, a four million tons per annum (mtpa) LNG export terminal to be constructed in the Port of Brownsville, Texas, is expected to achieve financial close and begin construction in 2024, commencing commercial operations in late 2027 or early 2028.
Glenfarne, a developer, owner and operator of energy transition infrastructure, 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.
At the end of 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, which intends to use abundant sources of locally procured renewable energy to power the facility and drive the plant’s electric motors.
Baker Hughes also has a framework agreement to make a strategic pre-FID investment in the project’s late-stage development.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.