US natural gas producer makes official reservation for half of Texas LNG terminal’s capacity for 20 years

Texas LNG, a subsidiary of Glenfarne Energy Transition, has signed a definitive tolling agreement for 50% of the future terminal’s liquefied natural gas (LNG) capacity spanning two decades.

This formalizes the two heads of agreement (HOA) signed between Texas LNG and Pittsburgh-based EQT, one for 0.5 mtpa of tolling capacity in January, followed by an additional 1.5 mtpa in April. The construction of the 4-mtpa facility in Texas’ Port of Brownsville is slated to begin later this year, with the start of commercial operations targeted for 2028.

“Converting our HOA with Texas LNG to a definitive tolling agreement brings us one step closer to unleashing EQT’s reliable, low emissions natural gas on the global stage,” said Toby Z. Rice, President and CEO of EQT. “We stand ready to deliver supply to growing LNG markets, helping to strengthen energy security and reduce global emissions via foreign coal displacement.”

In June, the project received a county tax abatement from Cameron County Commissioners Court, which is expected to provide financial flexibility and help cover the cost of additional services and infrastructure in the area. The developer claims to be committed to creating one of the cleanest, lowest-emitting LNG export terminals in the world powered by renewable energy driving the facility’s electric motors.

Brendan Duval, Glenfarne CEO and Founder and Co-President of Texas LNG, noted: “Glenfarne’s partnership with EQT will bring low-emission natural gas to transitioning and emerging markets, powering the globe’s phase out of legacy, carbon-intensive fuels. Beyond this partnership with EQT, Texas LNG is actively converting its other HOAs into definitive agreements in preparation for a final investment decision.”

After announcing a sale and purchase agreement (SPA) with Gunvor for 0.5 mtpa in March, a contract for the same amount was inked with an undisclosed partner, described by Glenfarne as “a top-tier credit-rated market participant” at the beginning of July, when the firm claimed to be in advanced negotiations with several potential offtakers for the remaining 1 mtpa.