Texas LNG Brownsville has entered into a long-term lease agreement with the Port of Brownsville, securing the site for its planned project for up to 50 years.
The lease agreement brings the FERC permitted project closer to a final investment decision, Texas LNG, a unit of Glenfarne Group, said in a statement.
The deal covers a 625-acre site located within the Port of Brownsville.
Texas LNG plans to construct and operate a 4 million tonnes per annum export terminal on a deepwater frontage site previously secured under an exclusive option to the lease agreement.
Vivek Chandra, Founder and CEO of Texas LNG LLC, a minority owner of the Brownsville project, said the long-term lease marks an “important step” in the development of Texas LNG.
“With these approvals and permits secured, Texas LNG is positioned to pursue a low-cost, flexible commercial model for global customers when operations begin in 2025, delivering to our partners, service providers, investors, and customers,” he said.
Separately, the US Department of Energy, Office of Fossil Energy has recently granted Texas LNG extensions on their previously issued export permits to December 31, 2050.
The new orders allow total exports of 204 billion cubic feet per year of natural gas, equivalent to 4 mtpa, to free trade agreement and non-FTA countries.
“Since becoming majority owner and managing member of Texas LNG in 2019, Alder Midstream, and its parent the Glenfarne Group, have worked diligently with the Texas LNG team and local stakeholders, including the Port of Brownsville to advance development of the project,” said Vlad Bluzer, managing director of Glenfarne Group.
“We believe Texas LNG’s commercial efforts, coupled with our strategy to develop and invest in regionally important assets throughout the global LNG infrastructure value chain, provide Texas LNG with a competitive advantage,” he said.
