Texas LNG’s offtake capacity nearing fully booked stage following latest deal

Texas LNG, a subsidiary of Glenfarne Energy Transition, has inked a non-binding heads of agreement (HOA) for a long-term liquefied natural gas (LNG) free-on-board (FOB) sale and purchase agreement (SPA).

The deal for 0.5 mtpa of LNG from the terminal was signed with an undisclosed partner, described by Glenfarne as “an affiliate of a top-tier credit-rated market participant”. Additionally, the firm claims to be in advanced negotiations with several potential offtakers for the remaining volumes.

Brendan Duval, CEO and founder of Glenfarne Energy Transition and Co-President of Texas LNG, stated: “This agreement positions Texas LNG on the verge of full sell out, and we look forward to finalizing our offtake partnerships in the near future.”

The construction in Texas’ Port of Brownsville is slated to start later this year, with commercial operations expected to begin in 2028. The fully permitted capacity of the 4-mtpa terminal has almost been reached, with 1 mtpa remaining.

Pittsburgh-based EQT signed an agreement for 0.5 mtpa of tolling capacity in January, followed by a second one for an additional 1.5 mtpa in April. Afterward, an offtake deal was inked with Gunvor for 0.5 mtpa, with the current 0.5 mtpa agreement following suit.

Last month, the project received a county tax abatement from Cameron County Commissioners Court. This is anticipated to provide financial flexibility and enable funding for additional services and infrastructure in the area.