Texas LNG, a subsidiary of Glenfarne Energy Transition, has finalised a 20-year sales and purchase agreement with Macquarie Energy, a unit of Macquarie Group, for the supply of 500,000 tonnes per annum (tpa) of liquefied natural gas (LNG).
This agreement converts a previous non-binding heads of agreement (HoA) into a binding contract and is said to strengthen Texas LNG’s position as a competitive LNG export project.
The Texas LNG project is a planned four million tonnes per annum (mtpa) LNG export terminal to be constructed by Glenfarne at the Port of Brownsville in Texas, US.
Kiewit, a US-based construction and engineering company, has been appointed to carry out the final front-end engineering design of the project.
Under a lump-sum turnkey agreement, Kiewit will carry out engineering, procurement and construction activities at the terminal.
Glenfarne said that the Texas LNG facility is designed to reduce operational carbon dioxide emissions, describing it as “Green by Design”.
Glenfarne Group founder and CEO Brendan Duval said: “Macquarie is a world-class partner, and their participation in our offtake portfolio demonstrates strong confidence in Glenfarne’s ability to deliver a reliable, low-emissions source of US LNG to global markets.”
Macquarie’s commodities and global markets business managing director Michael Bennett said: “This agreement with Texas LNG reflects our commitment to meeting the diverse energy needs of our clients around the world and adds to the strength of our offering in this space.
“LNG is a critical component of the global energy mix, providing a reliable and flexible fuel source, and we are proud to work with Glenfarne and Texas LNG to help provide energy supply to regions where demand is rapidly increasing.”
This latest agreement with Macquarie follows a similar 20-year contract signed this September between Texas LNG and Gunvor Singapore, also for 500,000tpa of LNG.
Both deals convert earlier non-binding HoAs into definitive contracts.
Glenfarne said that the binding agreement, along with the previously announced offtake agreements, brings Texas LNG one step closer to a final investment decision.
In April this year, the US Federal Energy Regulatory Commission released the final supplemental environmental impact statement for the Texas LNG export terminal.
