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.
