Energy News Beat
US natural gas producer EQT has entered into a heads of agreement for liquefaction services from Texas LNG’s planned facility in Brownsville to produce 0.5 mtpa of LNG under a 15-year tolling agreement.
The deal anticipates the finalization of a definitive 15-year tolling agreement from the first train of Glenfarne Group’s Texas LNG.
Texas LNG said in a statement it plans to achieve financial close and begin construction in 2024.
Moreover, the firm aims to launch commercial operations in late 2027 or early 2028, it said.
Brendan Duval, Glenfarne CEO and Founder, welcomed EQT as a customer and partner for Texas LNG.
“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,” he said.
Toby Z. Rice, president and CEO of EQT, said this HoA with Texas LNG “highlights continued momentum behind EQT’s differentiated LNG strategy, which is focused on achieving the best combination of upside exposure and downside risk mitigation.”
Also, Rice added that this tolling capacity gives EQT “direct connectivity to end users of natural gas globally, allowing for end-market structuring flexibility and superior downside protection.”
Texas LNG previously selected Swiss engineering group ABB and US energy services firm Baker Hughes to supply equipment for its 4 mtpa LNG project.
The developer of the plant appointed a joint venture of Technip Energies USA and Samsung Engineering to lead the delivery of the facility.
Texas LNG said in April last year that it expected to take the investment decision to build its LNG export project in 2023 following an order by the US FERC, but it later postponed the decision to 2024.
FERC issued an order on remand to the planned export terminal in the Port of Brownsville, Texas, owned by Glenfarne Energy Transition’s Texas LNG, following the completion of an additional social cost of carbon and environmental justice analysis.
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The post EQT inks tolling deal with Glenfarne’s Texas LNG appeared first on Energy News Beat.
