Texas LNG and Gunvor Finalize Long-Term LNG Offtake Agreement, Advancing Texas LNG Project Toward Final Investment Decision
Texas LNG Brownsville LLC, a liquefied natural gas (LNG) export terminal under development at the Port of Brownsville in Texas, has announced the signing of a definitive 20-year Sales and Purchase Agreement (SPA) with Gunvor Singapore Pte Ltd, a subsidiary of global commodities trading giant Gunvor Group. The deal secures 0.5 million tonnes per annum (MTPA) of LNG on a Free on Board (FOB) basis, marking a major milestone in the commercial advancement of the Texas LNG project.
The agreement, which converts an earlier non-binding Heads of Agreement (HOA) between the parties, reflects the growing momentum for U.S. LNG projects amid rising global demand for cleaner and more reliable sources of energy. Texas LNG Brownsville is a subsidiary of Glenfarne Energy Transition, LLC, a Houston-based independent owner, developer, and operator of energy transition infrastructure worldwide.
Key Details of the Agreement
Under the SPA, Gunvor will secure LNG volumes for two decades, reinforcing its position as one of the leading independent LNG traders worldwide. The agreement underlines Gunvor’s strategy of diversifying LNG supply portfolios while ensuring access to long-term, stable volumes of U.S.-produced LNG, which is increasingly in demand in Europe and Asia.
The SPA represents a significant de-risking event for Texas LNG, demonstrating strong customer commitment to the project. Most of the terminal’s planned capacity will ultimately be contracted under long-term binding agreements, a crucial requirement for securing project financing and reaching Final Investment Decision (FID).
Moving Toward FID
Texas LNG’s parent company, Glenfarne Energy Transition, emphasized that the agreement with Gunvor moves the project closer to its targeted FID by the end of the year.
“Texas LNG is moving rapidly towards a targeted year-end Final Investment Decision,” said Brendan Duval, Chief Executive Officer and Founder of Glenfarne Energy Transition. “Our agreement with Gunvor continues our progress of successfully completed commercial contracts, sufficient for FID, for Texas LNG. Together with the advanced state of project financing and the completion of the FERC process last month, this project is poised to unlock the superior benefits of clean, reliable U.S. LNG for Gunvor and our other partners.”
Duval’s remarks highlight the alignment of commercial contracts, regulatory milestones, and financing readiness—three essential ingredients for achieving FID in large-scale LNG developments.
Gunvor’s Perspective
Gunvor, headquartered in Geneva and recognized as one of the largest independent energy traders in the world, has been expanding its LNG portfolio to meet demand growth in Asia, Europe, and beyond.
“As one of the foundation customers of Texas LNG, we are pleased to complete this agreement and open up new sources of U.S. LNG to meet the growing demand for secure energy in overseas markets,” said Kalpesh Patel, Co-Head of LNG Trading at Gunvor. “This agreement demonstrates our long-term commitment to enhancing global LNG trade flows and ensuring supply diversification for our customers.”
Gunvor’s participation as an anchor customer provides credibility to Texas LNG’s commercial strategy. The trader’s global presence and flexibility in LNG distribution enable Texas LNG to tap into multiple markets, ensuring its product reaches the highest-value destinations.
Additional Commercial Progress
Beyond Gunvor, Texas LNG is in the process of finalizing additional binding agreements. The company is actively converting existing HOAs with Macquarie, a leading global financial services group with LNG trading capabilities, and another undisclosed investment-grade LNG buyer into definitive long-term contracts. Together, these agreements are expected to cover the majority of the project’s offtake volume, solidifying the terminal’s commercial foundation.
By advancing these negotiations, Texas LNG demonstrates its ability to attract high-quality counterparties, an essential factor in securing financing for multi-billion-dollar infrastructure projects.
Project Design and Execution
Texas LNG is designed as a 4 MTPA export facility, leveraging a modular, scalable development strategy. The project will use advanced engineering and construction techniques to minimize costs, improve efficiency, and ensure reliable delivery schedules.
Kiewit Corporation, one of North America’s largest and most experienced engineering, procurement, and construction (EPC) contractors, is leading the design and execution of Texas LNG under a lump-sum turnkey structure. This approach helps mitigate cost overruns and project delays, which are common risks in LNG terminal construction. Kiewit’s extensive experience with large-scale energy projects provides further confidence that Texas LNG can meet its construction and operational targets.
Once operational, the terminal is expected to generate significant economic benefits for the Brownsville region and the state of Texas, including job creation, tax revenue, and expanded industrial activity linked to LNG exports.
Role in Global LNG Market
The Texas LNG project enters the market at a time when demand for LNG is expanding globally. Energy security concerns in Europe, coupled with continued industrial growth in Asia, have driven LNG consumption to record levels. U.S. LNG projects are uniquely positioned to meet this demand due to abundant natural gas resources, a transparent regulatory framework, and well-developed energy infrastructure.
Texas LNG’s strategy of securing long-term contracts with high-quality offtakers like Gunvor ensures it can compete effectively with other LNG projects. The project’s smaller scale compared to mega-LNG terminals provides flexibility, allowing it to serve niche markets while also participating in global LNG flows.
Glenfarne’s Broader Energy Transition Strategy
For Glenfarne Energy Transition, Texas LNG is part of a broader portfolio of energy transition infrastructure projects. The company invests in and operates assets that support global decarbonization goals, including LNG facilities, renewable energy projects, and other forms of sustainable infrastructure. By advancing Texas LNG, Glenfarne seeks to provide a cleaner alternative to coal and oil while also supporting economic development in the U.S.
Duval emphasized that Texas LNG’s role extends beyond energy exports. The project contributes to global decarbonization by supplying reliable LNG that can displace higher-emission fuels while complementing renewable energy development.
