Glenfarne Advancing on U.S. LNG Developments in Texas, Alaska

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Glenfarne said its closer to reaching a final investment decision on its Texas LNG plant, planned for the Port of Brownsville. It's already behind another coastal project -- the Alaskan LNG facility.

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Texas LNG Closer to Reality

Amid its bicoastal plans for exports of liquefied natural gas (LNG), Glenfarne Group LLC said Monday an investment tranche puts its Texas project one step closer to a final investment decision. According to Industrial Info Resources data, there are 20 active capital Glenfarne projects in the U.S., with a total investment value of $43 billion.

HPS Investment Partners, part of BlackRock, put $500 million toward the Texas LNG facility, planned for the Port of Brownsville. Glenfarne plans to build the facility on a 625-acre site situated close to access points for gas flows from the Permian and Eagle Ford shale basins. Of those, the Permian is the most prolific gas producer, which is expected to average about 29 billion cubic feet per day (Bcf/d) for this year.

If completed as intended, data from Industrial Info show the facility would be a mid-scale plant with an export capacity of 2 million metric tons per annum (MTPA). The Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases offers a detailed project report and plant profile of the Brownsville development.

"This latest investment milestone is evidence of the execution readiness of Texas LNG, as it enables a number of strategic initiatives for the project, including placement of purchase orders for certain critical equipment packages," said Vlad Bluzer, co-president of Texas LNG and partner at Glenfarne.

Glenfarne said the electric-motor drives that would power Texas LNG would make the plant one of the cleanest of its kind in the world.

Glenfarne Supporting U.S. LNG Growth

Texas LNG could be ready for deliveries by late 2029, coming online at a time when various analyses point to an oversupplied market that could deter future investments. Meanwhile, increasing commitments for LNG exports could create supply-side pressures at home, leading to higher consumer bills.

The U.S. Department of Energy says it expects U.S. natural gas production to increase by only 2% by next year, compared to the 8.1% growth spurt expected from LNG. IIR Energy in its NATGAS Today report for Tuesday found feed gas running to LNG export terminals is currently subdued because of maintenance at various facilities.

Already the world leader in LNG exports, U.S. President Donald Trump has prioritized the sector through various executive orders. His administration is already behind another Glenfarne project, the Alaska LNG facility.

Japanese energy companies JERA and Tokyo Gas are among the major companies so far securing offtake from Alaska LNG. Australian services company Worley will offer engineering, procurement and construction management (EPCM) services for Phase I development of the Alaska project.

The first phase of the Alaska project would include a 739-mile, 42-inch pipeline that would be constructed in four sections, with potential tie-backs to existing midstream infrastructure. It will be difficult to build a pipeline, however, given the construction window in Alaska is narrowed by a warming climate, as special infrastructure is needed when the ground thaws. Phase II would add on coastal infrastructure that would be able to produce 20 MTPA for potential exports to Asia.

For Glenfarne, it is already permitted for 32.8 MTPA in LNG exports from a North American portfolio under development.

By the Numbers

• 32.8 MTPA in exports for LNG in Glenfarne's portfolio
• 8.1% y-o-y increase in LNG exports expected by 2027

Key Takeaways

• Glenfarne gets financial backing for Texas LNG.
• Glenfarne's Alaska project would be among the first out of the gate for U.S. LNG from the Pacific Coast.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).