LNG storage tank. (Source: Shutterstock)
EQT Corp. has entered into a heads of agreement (HOA) for liquefaction services from Texas LNG's facility in Brownsville, Texas, to produce 0.5 million tons per annum of LNG under a 15-year tolling agreement.
Final terms remain subject to negotiation of a definitive agreement between the parties. Texas LNG, a subsidiary of Glenfarne Energy Transition LLC, anticipates a final investment decision on the project in 2024, with first cargo deliveries expected in 2028.
In September, EQT signed a similar agreement for liquefaction services from Commonwealth LNG's facility in Cameron, Louisiana.
Toby Z. Rice, president and CEO, said the agreement highlights EQT’s continued momentum for the company’s differentiated LNG strategy, “which is focused on achieving the best combination of upside exposure and downside risk mitigation.”
“Our tolling capacity gives us direct connectivity to end users of natural gas globally, allowing for end-market structuring flexibility and superior downside protection," Rice said.
Rice said EQT's low-cost structure, peer-leading core inventory depth and environmental attributes “uniquely position us to compete and win in the global energy arena and we believe the international market will increasingly covet our molecules as a long-duration secure supply source that can drive meaningful emissions reductions via coal displacement.”
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