Texas LNG, a subsidiary of Glenfarne Energy Transition, has signed a non-binding agreement in principle (HOA) for a long-term free-on-board (FOB) purchase agreement for liquefied natural gas (LNG).

The contract for 0.5 million tonnes of LNG per year from the terminal was signed with an undisclosed partner, which Glenfarne described as follows: “an affiliate of a market participant with first-class creditworthiness”. In addition, the company states that it is in advanced negotiations with several potential buyers regarding the remaining quantities.

Brendan Duval, CEO and Founder of Glenfarne Energy Transition and Co-President of Texas LNG, stated: “With this agreement, Texas LNG is close to being completely sold out and we look forward to completing our offtake partnerships in the near future.”

Construction at the Texas port of Brownsville is scheduled to begin this year, with commercial operations scheduled to begin in 2028. The approved capacity of the 4 million ton terminal has almost been reached, with 1 million tonnes per year remaining.

Pittsburgh-based EQT signed a contract for 0.5 million tonnes per year of toll capacity in January, followed by a second contract for an additional 1.5 million tonnes per year in April. It then signed a 0.5 million tonnes per year offtake agreement with Gunvor, followed by the current 0.5 million tonnes per year contract.

Last month, the project received a tax abatement from the Cameron County Commissioners Court, which is intended to provide financial flexibility and enable funding for additional services and infrastructure in the area.