Glenfarne Global Commodities, the liquefied natural gas (LNG) marketing and trading arm of Glenfarne Group, has signed a heads of agreement (HoA) with BGN for the long-term supply of one million tonnes per annum (mtpa) of LNG.
The LNG is expected to be supplied from the Texas LNG export facility in Brownsville, Texas, US. It is owned and managed by Glenfarne Energy Transition, part of the wider Glenfarne Group.
The agreement sets out intentions for both parties to work towards a definitive 20-year sale and purchase agreement (SPA).
Final terms of the long-term agreement with BGN remain subject to negotiation and execution of the SPA.
Texas LNG will have a capacity of 4mtpa, with commercial operations anticipated in 2028.
The project has clearance from the US Federal Energy Regulatory Commission.
According to Glenfarne, the project is “Green by Design” and will use renewable energy for its electric motors, which is expected to minimise greenhouse gas emissions from liquefaction operations.
Glenfarne Group CEO and founder Brendan Duval said: “This agreement with BGN reflects the continued growth of Glenfarne Global Commodities as a global LNG portfolio business.
“By pairing LNG production assets with an integrated trading and marketing platform, Glenfarne is creating the flexibility to deliver secure and reliable LNG to customers where demand is growing.
“We are pleased to partner with BGN and look forward to developing a long-term commercial relationship as we expand our global LNG platform.”
BGN is a privately owned international energy and commodities trading group with operations in around 20 global locations. It trades in LNG, liquefied petroleum gas, crude oil, refined products, biofuels and other energy commodities.
The company’s collaboration with Glenfarne Global Commodities aims to address increasing demand for diversified supply of LNG.
BGN group chief operating officer Wael Amer said: “Expanding our LNG business is an important part of BGN’s global growth strategy and we are pleased to have signed this HoA with Glenfarne Global Commodities.
“Glenfarne’s integrated LNG platform and growing production portfolio make it a compelling long-term partner who will help us achieve our goals, and meet our customers’ need for reliable, flexible LNG supply.”
With both the Texas LNG project advancing towards a final investment decision and LNG capacity also being developed in Alaska and Louisiana, Glenfarne Global Commodities aims to expand its reach across Atlantic and Pacific Basin markets.
Last week, Glenfarne Group’s Texas LNG Brownsville awarded Kiewit Energy Group a limited notice to proceed for the Texas LNG export terminal. Kiewit serves as the engineering, procurement and construction contractor for the project.
