Texas LNG Brownsville Signs 20-Year Liquefaction Deal with EQT

(Reuters) — Glenfarne Group LLC's Texas LNG and EQT Corp. have executed a 20-year tolling agreement for natural gas liquefaction services for 2 million tonnes per annum (MTPA) of LNG, the energy companies said on Tuesday.

This agreement follows two Heads of Agreement signed by Texas LNG and EQT earlier this year.

Tolling agreements are fee-for-service deals in which the gas provider pays the company to convert gas to LNG, which it then sells to its customers.

"Glenfarne’s partnership with EQT will bring low-emission natural gas to transitioning and emerging markets, powering the globe’s phase out of legacy, carbon-intensive fuels,” Glenfarne CEO Brendan Duval said.

Texas LNG has secured offtake agreements for most of its project's remaining offtake, the company said, adding, "this includes a signed agreement with a top-tier, credit-rated market participant for 0.5 MTPA announced earlier this month."

In May, Glenfarne asked federal energy regulators to give it until November 2029 to put its proposed Texas LNG export plant into service.

The Texas LNG export plant, to be constructed in the Port of Brownsville, Texas, will have a capacity of 4 MTPA of LNG. It is expected to begin construction in 2024 and commence commercial operations in 2028.

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