Texas LNG eyes FID in 2022 as it inks pipeline deal with Enbridge

Glenfarne’s Texas LNG Brownsville, the developer of a 4 mtpa liquefaction plant, has signed a pipeline gas supply deal with Enbridge as it looks to take a final investment decision during this year.

According to a statement on Tuesday, Texas LNG and Enbridge have executed a pipeline transportation precedent agreement for the expansion of the existing Valley Crossing Pipeline.

Under the deal, Enbridge will deliver about 720 million cubic feet per day of natural gas to Texas LNG’s export facility for a term of at least 20 years.

The 257.4 km pipeline originates at Agua Dulce, a major Texas gas hub, and extends to the Port of Brownsville.

As part of the deal, Enbridge would build a 16 km lateral to extend the pipeline to Texas LNG’s facility, along with the addition of compression facilities on the existing pipeline, the statement said.

Also, the agreement remains subject to routine conditions precedent and other industry standard provisions, Texas LNG said.

“The execution of this agreement is the next of several important milestones Texas LNG will achieve as the facility moves toward a final investment decision,” Brendan Duval, CEO of Glenfarne, said.

In December 2020, Texas LNG 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 developer said it expects to take the final investment decision to build the 4 mtpa plant in 2022 and to start commercial operations in 2026.

Most Popular

Cedar FLNG launched in South Korea

South Korea’s Samsung Heavy Industries has launched Cedar LNG's floating LNG production unit, which will be installed in Kitimat on Canada’s West Coast.

India’s Petronet LNG declares force majeure to offtakers

India's largest LNG importer has declared force majeure to its offtakers after it received a notice from state-owned QatarEnergy, which on Monday stopped production at its giant Ras Laffan LNG plant due to attacks.

BP submits lowest bid in Pakistan LNG tender

A unit of UK-based energy giant BP has submitted the lowest bid in a tender to supply Pakistan with one spot LNG shipment this week.

More News Like This

Glenfarne, ConocoPhillips ink preliminary gas deal for Alaska LNG project

US energy firms Glenfarne and ConocoPhillips have signed a gas sales precedent agreement to supply natural gas produced on Alaska’s North Slope for the first phase of the Glenfarne-led Alaska LNG project.

Glenfarne’s commodities unit to offtake Texas and Alaska LNG volumes

US energy firm Glenfarne said it is expanding its global LNG commodities platform, Glenfarne Global Commodities, 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.

Glenfarne’s Texas LNG awards module gig to Kiewit

Glenfarne’s Texas LNG, the developer of the planned 4 mtpa LNG export terminal in the port of Brownsville, has selected Kiewit Offshore Services to fabricate the project’s liquefaction, pretreatment, and pipe rack modules.

Glenfarne’s Texas LNG, Kiewit seal EPC deal

Glenfarne’s Texas LNG, the developer of the planned 4 mtpa LNG export terminal in the port of Brownsville, and Kiewit have executed the engineering, procurement, and construction (EPC) agreement under a lump-sum turnkey contract structure. Glenfarne said this announcement represents one of the final steps required for Texas LNG before making a final investment decision (FID).