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Under the HoA, GGC and BGN intend to negotiate a definitive 20-year LNG sale and purchase agreement (SPA) for 1 million tonnes of LNG supplied from Texas LNG, Glenfarne’s planned LNG export project in Brownsville, Texas, according to a Glenfarne statement.
Glebfarbe said that final terms remain subject to negotiation and to the execution of the definitive SPA.
“This agreement with BGN reflects the continued growth of Glenfarne Global Commodities as a global LNG portfolio business,” said Brendan Duval, CEO and founder of Glenfarne.
“By pairing LNG production assets with an integrated trading and marketing platform, Glenfarne is creating the flexibility to deliver secure and reliable LNG to customers where demand is growing. We are pleased to partner with BGN and look forward to developing a long-term commercial relationship as we expand our global LNG platform,” he said.
BGN expanding LNG business
BGN is active across the entire energy value chain, trading in LNG, LPG, crude oil, refined products, biofuels, SAF, and other energy commodities.
The HOA provides a foundation for a long-term commercial relationship between GGC and BGN as both companies work to meet growing demand for “secure, flexible, and diversified LNG supply,” the statement said.
“Expanding our LNG business is an important part of BGN’s global growth strategy and we’re pleased to have signed this heads of agreement with Glenfarne Global Commodities,” said Wael Amer, Group CEO for BGN.
Texas and Alaska LNG volumes
GGC was formed to expand Glenfarne’s global LNG capabilities through marketing, trading, and portfolio optimization.
Earlier this year, Glenfarne said it is expanding GCC to include 1.5 mtpa of LNG offtake from Texas LNG’s planned 4 mtpa export terminal in the port of Brownsville as the project nears a final investment decision.
US construction and engineering firm Kiewit just received a limited notice to proceed from Glenfarne’s Texas LNG for the latter’s planned 4 mtpa LNG export terminal.
In addition to the Glenfarne-operated Texas LNG project, GCC will offtake volumes from Alaska LNG.
Glenfarne, which became the majority owner of the Alaska LNG project last year, is developing Alaska LNG in two financially independent phases to accelerate project execution.
Phase One consists of a 739-mile (1,287 km) pipeline, while Phase Two of the project will add the LNG liquefaction terminal and related infrastructure to export 20 mtpa of LNG.