US natural gas producer EQT has entered into a binding agreement for liquefaction services from Texas LNG’s planned facility in Brownsville to produce 2 mtpa of LNG under a 20-year tolling agreement.
Texas LNG said in a statement on Tuesday that this binding deal solidifies the two heads of agreement signed earlier this year.
In January, the two firms entered into a heads of agreement for liquefaction services for 0.5 mtpa of LNG under a 15-year tolling agreement.
After that, the two firms signed a new heads of agreement in April for 1.5 mtpa, boosting the total to 2 mtpa.
“Beyond this partnership with EQT, Texas LNG is actively converting its other HOAs into definitive agreements in preparation for a final investment decision,” Brendan Duval, Glenfarne CEO and founder said.
In January, Texas LNG also signed a long-term supply deal with a unit of Geneva-based trader Gunvor.
Texas LNG recently entered into a deal with a “top-tier credit-rated market participant” for a long-term LNG free-on-board sale and purchase agreement for 0.5 mtpa of LNG.
Glefarne did not reveal the name of the buyer.
The LNG plant will have a capacity of 4 mtpa.
Texas LNG plans to begin construction in 2024 and start commercial operations in 2028.
Besides this facility, the Glenfarne LNG portfolio also includes the 8.8 mtpa Magnolia LNG export facility under development in Lake Charles, Louisiana.
