New offtake deal takes Texas LNG project to FID-ready stage

Texas LNG, a subsidiary of Glenfarne Energy Transition has signed another heads of agreement (HOA) for a long-term supply of liquefied natural gas (LNG) from its proposed facility in Texas’ Port of Brownsville.

Thanks to the latest agreement, the developer says it has the customer offtake commitments needed to reach a final investment decision (FID) for its Texas LNG facility. While the name of the new client and the capacity booked remain unknown, the US firm alleges that this is “a highly experienced, investment-grade, global LNG player.”

Brendan Duval, CEO and Founder of Glenfarne Energy Transition and Co-President of Texas LNG, said: “Our strong and diversified customer base, which fortifies Texas LNG’s FID financeability, now includes the largest producer of natural gas in America, a leading global financial institution, one of the world’s largest independent commodities traders, and a major global LNG player. We look forward to advancing Texas LNG alongside our world-class project partners.”

This deal follows the ones concluded with EQT for 0.5 mtpa in January and 1.5 mtpa in April, with Gunvor for 0.5 mtpa in March, and with what has now been disclosed as Macquarie Group for 0.5 mtpa in July. The definitive tolling agreement with EQT was formally signed in late July.

While the construction of the 4-mtpa facility in Texas’ Port of Brownsville was slated to begin later this year, with commercial operations expected to start in 2028, it remains to be seen whether these dates will be affected by a recent ruling by the U.S. Court of Appeals for the D.C. Circuit, which revoked the reauthorizations made by the Federal Energy Regulatory Commission (FERC) over environmental concerns.