Houston, Texas, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Texas LNG Brownsville LLC (“Texas LNG”) has entered into a long-term lease agreement with the Port of Brownsville, successfully securing the Texas LNG export project site for up to 50 years. The lease agreement is an important milestone bringing the FERC permitted project closer to a final investment decision (“FID”), while also confirming to liquefied natural gas (“LNG”) buyers that Texas LNG is well-positioned to support the continued growth of the LNG market.
The lease agreement covers a 625-acre site located within the Port of Brownsville. Texas LNG plans to construct and operate a 4 million tonnes per annum (“mtpa”) LNG export terminal on a deepwater frontage site previously secured under an exclusive option to the Lease agreement.
Vivek Chandra, Founder and CEO of Texas LNG LLC (a minority owner of the Texas LNG project) said, “We appreciate the ongoing support from the Port of Brownsville. The execution of a long-term lease is an important step in the development of Texas LNG. With these approvals and permits secured, Texas LNG is positioned to pursue a low-cost, flexible commercial model for global customers when operations begin in 2025, delivering to our partners, service providers, investors, and customers.”
Langtry Meyer, Founder and COO of Texas LNG LLC said, “Texas LNG has forged a strong partnership with the Port of Brownsville by signing this lease agreement with a duration of up to half a century. Texas LNG is committed to operating in an environmentally responsible, safe manner, providing economic benefits to the local community, and delivering clean, reliable, low-cost Texas natural gas energy to our customers around the world from the Port of Brownsville.”
Separately, the U.S Department of Energy, Office of Fossil Energy (“DOE/FE”) has granted Texas LNG extensions on their previously issued LNG export permits to December 31, 2050. The DOE/FE orders allow total exports of 204 billion cubic feet per year of natural gas, equivalent to 4 mtpa of LNG from Texas LNG’s facilities to any country, including free trade agreement (“FTA”) and non-FTA countries, with which trade is not prohibited by U.S. law or policy.
“Since becoming majority owner and Managing Member of Texas LNG in 2019, Alder Midstream, and its parent the Glenfarne Group, have worked diligently with the Texas LNG team and local stakeholders, including the Port of Brownsville to advance development of the project,” said Vlad Bluzer, Managing Director of Glenfarne Group. “We believe Texas LNG’s commercial efforts, coupled with our strategy to develop and invest in regionally important assets throughout the global LNG infrastructure value chain, provide Texas LNG with a competitive advantage.”
Texas LNG’s strengths include access to abundant and competitively priced Permian Basin feed gas, use of existing pipeline infrastructure, efficient modular construction design, transparent competitive pricing structure, and lower-carbon ‘green’ LNG resulting from usage of more efficient electrical drive motor rather than gas-fired engines to drive the liquefaction compressors. The 4 mtpa size of the facility fills an important niche from LNG customers seeking smaller contracted volumes to diversify their gas supply portfolio.
About Texas LNG
Texas LNG Brownsville LLC is a Houston-based LNG export company focused on creating value and minimizing risk for all stakeholders, including the local community, investors and customers.
The Texas LNG export facility will be constructed in South Texas on a 625-acre site strategically located on the Port of Brownsville's deepwater ship channel near plentiful natural gas supplies and pipelines. The facility will enable the export of 4 mtpa of LNG to established and emerging markets.
Alder Midstream, an affiliate of Glenfarne Group, LLC, is the majority owner of Texas LNG Brownsville LLC. Samsung Engineering Co., Ltd. is a minority equity owner in and strategic partner to Texas LNG LLC (a minority equity owner of Texas LNG Brownsville LLC).
Additional information about the Texas LNG Project may be found on its website at www.txlng.com.
About Glenfarne Group
Glenfarne is a privately held energy and infrastructure development and management firm based in New York City and Houston, Texas with offices in Panama City, Panama; Santiago, Chile and Bogota, Colombia. Glenfarne's seasoned executives, asset managers and operators develop, acquire, manage and operate energy and infrastructure assets throughout North and South America and Asia. For more information, please visit www.glenfarnegroup.com.
Contact:
Texas LNG Brownsville Media Contact: pro-texaslng@prosek.com
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