Texas LNG Brownsville LLC has executed a definitive 20-year Sales and Purchase Agreement with Gunvor Singapore Pte Ltd for 0.5 million tonnes per annum of liquefied natural gas on a Free on Board basis. The agreement converts a previous non-binding Heads of Agreement between the companies and represents a significant milestone for the proposed four million tonnes per annum LNG export terminal in the Port of Brownsville, Texas.
Project Development Progress
Texas LNG Brownsville LLC, a subsidiary of Glenfarne Energy Transition LLC, is advancing rapidly toward a targeted year-end Final Investment Decision. Brendan Duval, Glenfarne’s chief executive officer and founder, indicated that the Gunvor agreement continues the company’s progress in securing commercially binding contracts sufficient for FID approval.
The project has achieved several critical milestones, including advanced project financing arrangements and completion of the Federal Energy Regulatory Commission (FERC) approval process last month. These developments position the terminal to deliver what Duval characterised as the superior benefits of clean, reliable U.S. LNG to Gunvor and other project partners.
Strategic Partnership
Kalpesh Patel, co-head of LNG Trading at Gunvor, expressed satisfaction with completing the agreement as one of Texas LNG’s foundation customers. The partnership opens new sources of US LNG supply to meet growing demand for secure energy in overseas markets, reflecting Gunvor’s strategic positioning in global LNG trading operations.
Gunvor Singapore Pte Ltd, a subsidiary of the Gunvor Group, brings significant international trading expertise and market access capabilities to the partnership, supporting Texas LNG’s export objectives.
Commercial Framework Development
The majority of Texas LNG’s offtake volume will be sold under long-term binding agreements, providing project revenue stability and financing security. The company is actively converting additional Heads of Agreements with Macquarie and another highly experienced, investment-grade global LNG player into definitive supply contracts.
This commercial structure demonstrates Texas LNG’s systematic approach to securing long-term revenue commitments prior to final investment decision, reducing project risk and enhancing financing attractiveness.
Construction Partnership
Kiewit is leading the engineering, procurement, and construction of Texas LNG under a lump-sum turnkey structure, providing project cost certainty and execution accountability. This arrangement supports the project’s development timeline and Final Investment Decision objectives.
The agreement with Gunvor strengthens Texas LNG’s commercial foundation as the project advances toward construction and operational phases, contributing to the growing U.S. LNG export capacity serving international markets.
For more information visit www.gunvorgroup.com
