Contractor selection brings US LNG terminal closer to FID

Texas LNG, a subsidiary of Glenfarne Energy Transition, has selected compatriot construction and engineering services provider Kiewit to lead the engineering, procurement, and construction (EPC) of its proposed liquefied natural gas (LNG) terminal in Texas’ Port of Brownsville.

Kiewit’s subsidiaries Kiewit Engineering Group and Kiewit Energy Group have been selected to work on Glenfarne’s Texas LNG facility under a lump-sum turnkey (LSTK) structure. The developer intends to work with Kiewit to complete the pre-final investment decision (FID) engineering required for the project to proceed to an FID.

In September, Glenfarne claimed to have fulfilled one of the requirements needed for the 4 million tons per annum (mtpa) project to move to the FID stage by signing an offtake deal with “a highly experienced, investment-grade, global LNG player.” 

Brendan Duval, CEO and Founder of Glenfarne, and Co-President of Texas LNG, remarked: “Texas LNG received immense interest from world-class contractors that wanted to be involved in the project. Kiewit’s proposal, capability, and partnership vision for Texas LNG, as well as their significant execution and implementation expertise on the US Gulf Coast, made a substantial impression on our project team. We look forward to working with them.”

Eric Gutierrez, Executive Vice President of Kiewit Energy Group, echoed Duval’s sentiment, noting that his company appreciates the opportunity to work on developing important energy infrastructure opportunities in the United States.

An offtake deal for the facility was previously inked with EQT for 0.5 mtpa in January and 1.5 mtpa in April, followed by a definitive tolling agreement in late July. Furthermore, agreements were signed with Gunvor for 0.5 mtpa in March, and with what has now been revealed to be Macquarie Group for 0.5 mtpa in July.

While the construction was foreseen to start later this year, with commercial operations following suit in 2028, it remains to be seen whether these dates will be affected by a recent ruling to revoke the reauthorizations made by the Federal Energy Regulatory Commission (FERC) over environmental concerns.