Texas LNG, a four million tonnes per annum (MTPA) liquefied natural gas (LNG) export terminal to be constructed in the Port of Brownsville and a subsidiary of Glenfarne Energy Transition, has received sufficient expressions of interest from project finance banks to move to the execution phase of project financing.
Moreover, Glenfarne has appointed Latham & Watkins as the Borrower’s counsel and Milbank as the Lenders’ counsel for the issuance.
According to Glenfarne, the lenders in question have been its key supporters, having led over $4 billion of financing to Glenfarne’s businesses over the last 10 years, supporting the acquisition and/or construction of various energy transition focused assets.
Furthermore, these banks are active in LNG, having participated in approximately $44 billion of project finance debt to the U.S. LNG sector alone over the last 24 months, Glenfarne said.
To note, Glenfarne is Texas LNG’s majority owner and managing member, while Samsung Engineering owns a minority equity interest and is leading the delivery of the facility along with Technip Energies U.S.
Texas LNG is expected to begin construction in 2024, commencing commercial operations in late 2027 or early 2028.
In February 2024, Texas LNG selected Gulf LNG Tugs of Texas to build, deliver and operate tugboats under a long-term agreement to assist LNG carriers arriving at the LNG export facility.
The tugboats will be among the most modern, low-emissions tugboats available to serve the facility in line with the “Green by Design” approach, Texas LNG claimed.
At the beginning of 2024, Texas LNG signed a heads of agreement (HOA) with Pittsburgh-based EQT Corporation for natural gas liquefaction services, anticipating the finalization of a definitive 15-year LNG tolling agreement for 0.5 MTPA of LNG from the first train of Texas LNG terminal.
In late 2023, Glenfarne selected Baker Hughes to supply gas compression technology equipment for the terminal , noting that the agreement facilitates Texas LNG’s “Green by Design” approach. Baker Hughes also has a framework agreement to make a strategic pre-FID investment in the project’s late-stage development.