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Texas LNG said in a statement it will work with Kiewit to “promptly” complete the pre-final investment decision (FID) engineering required for the project to proceed to a FID.
The company did not provide further contract details.
Brendan Duval, CEO and founder of Glenfarne, and co-president of Texas LNG said Texas LNG received “immense interest from world-class contractors that wanted to be involved in the project.”
“Kiewit’s proposal, capability, and partnership vision for Texas LNG, as well as their significant execution and implementation expertise on the US Gulf Coast, made a substantial impression on our project team,” he said.
Offtake deals
In September, Texas LNG signed a new heads of agreement to supply LNG to a “highly experienced, investment-grade, global LNG player.”
With this announcement, Texas LNG said it had secured customer offtake commitments in a volume sufficient for achieving FID.
The company expects to begin construction in 2024.
In July, US natural gas producer EQT entered into a binding agreement for liquefaction services from Texas LNG’s planned facility in Brownsville to produce 2 mtpa of LNG under a 20-year tolling agreement.
This binding deal solidifies the two heads of agreement signed earlier this year.
The two firms entered into a heads of agreement in January for liquefaction services for 0.5 mtpa of LNG under a 15-year tolling agreement.
After that, the two firms signed a new heads of agreement in April for 1.5 mtpa, boosting the total to 2 mtpa.
In addition, Texas LNG signed a long-term supply deal in March with a unit of Geneva-based trader Gunvor.
This deal is for 0.5 mtpa of LNG on a FOB basis for 20 years.
Texas LNG also recently entered into a deal with a “top-tier credit-rated market participant” for a long-term LNG free-on-board sale and purchase agreement for 0.5 mtpa of LNG.
Besides these deals, Texas LNG also previously selected Swiss engineering group ABB and US energy services firm Baker Hughes to supply equipment for its LNG project. It also awarded a tugboat contract to Gulf LNG Tugs of Texas.
These partnerships total nearly one billion dollars of investment into the project, according to the firm.
Glenfarne also requested more time from the US FERC to build and place in service its Texas LNG export project.
Texas LNG sought an additional five-year extension to complete construction and place the project in service until November 22, 2029.