Texas LNG Brownsville (Texas LNG), operated by Glenfarne Energy Transition, has finalised a 20-year tolling agreement with EQT.
Texas LNG is a planned 4mtpa LNG export facility in the Port of Brownsville, Texas.
This long-term contract covers liquefaction services for 2mtpa of LNG, reinforcing the preliminary heads of agreement (HOA) signed earlier this year.
Tolling agreements are fee-for-service contracts where the gas supplier compensates the facility to convert gas into LNG, which is then sold to customers.
Texas LNG has also secured offtake agreements for most of the facility’s capacity, including a recent deal with a high-credit market participant for 500,000tpa.
Construction on the project is due to start in 2024 and operations in 2028.
Additionally, the Glenfarne Energy Transition LNG portfolio includes the 8.8mtpa Magnolia LNG export facility under development in Lake Charles, Louisiana.
Glenfarne CEO and founder and Texas LNG co-president Brendan Duval said: “Glenfarne’s partnership with EQT will bring low-emission natural gas to transitioning and emerging markets, powering the globe’s phase-out of legacy, carbon-intensive fuels.
“Beyond this partnership with EQT, Texas LNG is actively converting its other HOAs into definitive agreements in preparation for a final investment decision.”
EQT president and CEO Toby Rice said: “Converting our HOA with Texas LNG to a definitive tolling agreement brings us one step closer to unleashing EQT’s reliable, low-emissions natural gas on the global stage.
“We stand ready to deliver supply to growing LNG markets, helping to strengthen energy security and reduce global emissions via foreign coal displacement.”
In November last year, Baker Hughes was appointed to provide gas compression technology for Texas LNG.
