Texas LNG advances towards construction with project financing execution phase
Texas LNG, poised to become a leading four million tonnes per annum (MTPA) liquefied natural gas (LNG) export terminal in the Port of Brownsville, has achieved a significant milestone by receiving sufficient expressions of interest from top project finance banks. This development ushers the project, a subsidiary of Glenfarne Energy Transition, LLC, into the execution phase of project financing. Glenfarne, renowned for its global leadership in energy transition solutions aimed at reducing the world’s carbon footprint, has appointed Latham & Watkins as Borrower’s counsel and Milbank as Lenders’ counsel for the issuance.
The engagement of leading project finance banks, which have previously facilitated over $4 billion of financing to Glenfarne’s enterprises over the past decade, marks a crucial step in supporting the acquisition and construction of energy transition-focused assets. These banks, known for their active participation in LNG financing, have contributed to approximately $44 billion of project finance debt in the U.S. LNG sector in the last two years alone.
Brendan Duval, CEO and Founder of Glenfarne Energy Transition, highlighted the consortium’s significance, stating, “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.” This statement underscores the project’s alignment with global financial institutions committed to sustainable energy development.
Texas LNG’s progress is further evidenced by its recent Heads of Agreement (HOA) with EQT Corporation for 0.5 MTPA of LNG natural gas liquefaction services. Additionally, Texas LNG has announced partnerships with industry giants Baker Hughes and ABB, selecting equipment worth over half a billion dollars, which represents a significant investment in the terminal’s development.
Anticipated to begin LNG exports in 2028, Texas LNG aims to establish one of the greenest LNG facilities worldwide. The commitment to using electric motor drives is a testament to the project’s dedication to minimizing emissions and positioning the U.S. as a leader in clean LNG exports.
Glenfarne Energy Transition, LLC, a subsidiary of the New York City and Houston-based Glenfarne Group, LLC, embodies the synergy between energy infrastructure development and environmental stewardship. Through projects like Texas LNG, Glenfarne reinforces its mission to transition towards more sustainable energy solutions while ensuring economic viability.