Texas LNG project takes step forward

Texas LNG is a 4 MTPA LNG export facility owned and managed by global energy transition leader Glenfarne Energy Transition. A joint venture between Technip Energies USA and Samsung Engineering Co., Ltd. is leading the delivery of the facility. Texas LNG is led by an experienced team committed to creating one of the greenest LNG facilities in the world. (Image: Texas LNG)

Texas LNG said it has received sufficient expressions of interest from leading project finance banks to move to the execution phase of project financing for its Brownsville, Texas liquefied natural gas (LNG) export facility.

Texas LNG is owned and operated by Glenfarne Energy Transition, which also appointed Latham & Watkins as Borrower’s counsel and Milbank as Lenders’ counsel for the issuance.

The facility, on a 625-acre site with access to the prolific low-cost Permian basin and Eagle Ford gas reserves, is designed to produce 4 MTPA of LNG for export to global markets.

Texas LNG is developing the project site on the Port of Brownsville’s north shore, which offers access to a deep-water ship channel only one hour’s voyage from the Gulf of Mexico. The port is also situated close to the Panama Canal, providing easy access to global shipping lanes that will help Texas LNG service customers efficiently and reliably.

Texas LNG’s liquefaction process will eliminate most CO2 emissions by using electric motor compression driven by renewable power. The facility’s emission levels are expected to be less than half of the typical U.S. LNG export project.

The lenders have been key supporters of Glenfarne, having led over US$4 billion of financing to Glenfarne’s businesses over the last 10 years, supporting the acquisition and/or construction of various energy transition focused assets. Furthermore, these banks are active in LNG, having participated in approximately $44 billion of project finance debt to the U.S. LNG sector alone over the last 24 months. “Texas LNG’s financing consortium will be comprised of the world’s leading institutions that recognize the attributes of the project and Glenfarne’s excellent history of building energy transition infrastructure,” said Brendan Duval, CEO and Founder of Glenfarne Energy Transition. Texas LNG’s also recently announced that it signed a Heads of Agreement (HOA) with EQT Corp. for natural gas liquefaction services for 0.5 MTPA of LNG. Texas LNG also recently announced partnerships with Baker Hughes and ABB to help develop the terminal, representing more than half a billion dollars’ worth of equipment selections for Texas LNG to date. The first LNG exports from Texas LNG are expected to be shipped in 2028.