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

TotalEnergies to transfer Papua LNG operatorship to ExxonMobil

French energy giant TotalEnergies said on Monday that Papua LNG has achieved "major" contractual and commercial milestones, marking "decisive" steps towards a final investment decision. These include completing the EPC tendering process and transferring Papua LNG operatorship to US energy giant ExxonMobil, operator of the PNG LNG project.

Gasunie, Vopak plan fifth Gate LNG jetty

Dutch partners Gasunie and Vopak plan to build a fifth liquefied natural gas (LNG) jetty at their Gate terminal in the port of Rotterdam.

Arctic LNG 2 seeks $1 billion from Hanwha Ocean over terminated LNG carrier orders

Novatek-led Arctic LNG 2 is seeking approximately $1 billion in damages from South Korean shipbuilder Hanwha Ocean over terminated shipbuilding contracts for Arc7 ice-class LNG tankers.

More News Like This

Glenfarne’s Magnolia LNG seals feed gas deal

Glenfarne’s Magnolia LNG has signed a long-term feed gas deal with Texas Eastern Transmission for its planned liquefaction and export plant in Louisiana.

HPS to invest $500 million in Glenfarne’s Texas LNG

New York-based HPS Investment Partners, part of BlackRock, has decided to invest $500 million in Glenfarne's 4 mtpa Texas LNG export terminal in the port of Brownsville as the project nears a final investment decision.

Glenfarne’s commodities unit, BGN ink preliminary LNG supply deal

Glenfarne's unit Glenfarne Global Commodities has signed a heads of agreement with Switzerland-based energy trader BGN for the long-term supply of liquefied natural gas (LNG).

Kiewit gets limited notice to proceed for Glenfarne’s Texas LNG

US construction and engineering firm Kiewit has received a limited notice to proceed from Glenfarne's Texas LNG for the latter's planned 4 mtpa LNG export terminal in the port of Brownsville.