Texas LNG, a subsidiary of Glenfarne Energy Transition, has secured an offtake deal with Macquarie Energy, a subsidiary of Macquarie Group, for a liquefied natural gas (LNG) export facility to be constructed in the Port of Brownsville, Texas.
While disclosing a definitive 20-year sales and purchase agreement (SPA) with Macquarie for the Texas LNG project, Glenfarne explains that this deal is for 0.5 million tonnes per annum (mtpa) of LNG, which converts a previous non-binding heads of agreement between the two companies into a binding definitive agreement.
Brendan Duval , Chief Executive Officer and Founder of Glenfarne Group, commented: “Our offtake agreement with Macquarie reinforces Texas LNG’s position as one of the most competitive LNG export projects in the world.
“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 U.S. LNG to global markets.”
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This agreement, along with the three previously announced offtake deals, is said to bring Texas LNG one step closer to a final investment decision (FID). The company describes the project as a “green by design” liquefaction facility designed to significantly reduce operational CO2 emissions.
Kiewit has been contracted for final front-end engineering design and to lead the engineering, procurement, and construction of Texas LNG under a lump-sum turnkey agreement.
Michael Bennett , Managing Director in Macquarie’s Commodities and Global Markets business, highlighted: “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.”