By Alison Healey
Glenfarne has signed a definitive 20-year sales and purchase agreement with Macquarie Energy for 0.5m tonnes per year of LNG from its Texas LNG project. The agreement converts a previous non-binding heads of agreement between the parties.
The agreement, along with previously announced Texas LNG offtake agreements, brings Texas LNG closer to a final investment decision. Glenfarne is targeting year-end FID for the project and has said it is in an “advanced state of project financing”. Its lenders are relationship banks that have led more than US$4bn of financing for Glenfarne’s businesses over the past 10 years, supporting construction and acquisitions. Gunvor and EQT have also signed on for offtake from the project and the sponsor said its anticipated contracts are in a volume sufficient for achieving FID.
The Federal Energy Regulatory Commission has reissued a final order authorising construction and operation of the project and approved its construction schedule. The cost of Texas LNG has been estimated at US$3.5bn. Construction on the project is expected to be complete by November 2029. Kiewit has been contracted for final front-end engineering design and to lead the engineering, procurement, and construction of Texas LNG under a lump-sum turnkey agreement.