Texas LNG, a subsidiary of Glenfarne Energy Transition, has expanded its natural gas tolling agreement with US gas company EQT.
The latest heads of agreement now provide a total of 2 million tons per annum (mtpa) of liquefaction services to EQT for a 20-year duration.
In tolling agreements, which are fee-for-service contracts, the gas supplier pays the business to convert gas into liquefied natural gas (LNG), which the business subsequently sells to its clients. Earlier this year, Texas LNG and EQT signed an initial agreement for 500,000 tons per annum (tpa) of tolling capacity.
Under the new terms, the Texas-based LNG export facility will offer an additional 1.5 mtpa of liquefaction services to EQT.
This agreement is a key step toward fulfilling the plant’s fully permitted capacity, as it now leaves only 1.5 mtpa of offtake pending announcement.
Texas LNG is set to be a 4 mtpa facility in the Port of Brownsville, Texas, with commercial operations expected to begin in 2028.
In March, Texas LNG secured a 500,000 tpa offtake agreement with Gunvor, marking another milestone toward achieving full capacity.
Glenfarne holds the majority stake and managing membership of the project. Additionally, Glenfarne is the sole owner and developer of the 8.8 mtpa Magnolia LNG project in Lake Charles, Louisiana.
Brendan Duval, the CEO and Founder of Glenfarne, expressed pride in expanding their partnership with EQT through today’s announcement. Texas LNG has already sold over half of its permitted capacity. With this EQT agreement and additional offtake sales soon to be announced, they anticipate reaching financial close and commencing construction in the fourth quarter of this year.
In February, Texas LNG revealed a collaboration with Gulf LNG Tugs to construct and operate a fleet of eco-friendly tugboats.
These vessels are specifically designed to assist LNG carriers at the Brownsville export facility.
source: Texas LNG
