Texas LNG, a subsidiary of Glenfarne Energy Transition, has signed a definitive sales and purchase agreement (SPA) with Gunvor Singapore, a subsidiary of Swiss-headquartered Gunvor Group, for offtake from a liquefied natural gas (LNG) export facility to be constructed in the Port of Brownsville, Texas.
The 20-year deal entailing 0.5 million tonnes per annum (mtpa) of LNG from Texas LNG on a free on board basis converts the heads of agreement (HoA) that the two companies inked last March into a binding contract.
“Texas LNG is moving rapidly towards a targeted year-end Final Investment Decision. Our agreement with Gunvor continues our progressing of successfully completed commercial contracts, sufficient for FID, for Texas LNG ,” said Glenfarne Chief Executive Officer and Founder Brendan Duval .
“ Together with the advanced state of project financing and completion of the FERC process last month, this project is poised to unlock the superior benefits of clean, reliable U.S. LNG for Gunvor and our other partners.”
Glenfarne proposes to build the Texas LNG facility with a 4 million tonnes per annum (mtpa) capacity in South Texas. The FERC-permitted facility is described by the developer as “green by design” as it will be powered by renewable energy driving the facility’s electric motors.
Kalpesh Patel , Co-Head of LNG Trading of Gunvor, stated: “As one of the foundation customers of Texas LNG, we are pleased to complete this agreement and open up new sources of U.S. LNG to meet the growing demand for secure energy in overseas markets .”
The company added that it is in the process of converting HOAs with Macquarie from last July and another firm, described as a “highly experienced, investment-grade” global LNG player from last September, into definitive agreements.
The U.S. Federal Energy Regulatory Commission (FERC) reissued the final order authorizing the terminal’s construction and operation last month.
This comes on the heels of a deal secured by Glenfarne’s other subsidiary, Alaska LNG, which inked a letter of intent (LoI) with JERA for a potential offtake of 1 mtpa from the project it proposes to build in the U.S.’ northernmost state.