Glenfarne Group LLC has secured fresh capital to continue development and early construction works for the proposed Texas LNG plant to be constructed on a 625-acre site in the Port of Brownsville, Tex.
HPS Investment Partners, a part of BlackRock, agreed to the $500-million investment, which serves as one of the final steps required for the 4-million tonnes/year (tpy) project to reach final investment decision (FID), Glenfarne Group said in a release July 14. FID had most recently been expected in this year’s second quarter.
The capital also enables certain initiatives, including placement of purchase orders for certain critical equipment packages, said Vlad Bluzer, co-president of Texas LNG and partner at Glenfarne.
Specifically, the investment supports the recent limited notice to proceed (LNTP) granted to Kiewit, the lead engineering, procurement, and construction contractor, as part of the project’s executed lump-sum turnkey contract. The LNTP will include the issuance of critical purchase orders with key equipment suppliers, EPC-phase engineering activities, and geotechnical work.
In January, the Texas LNG project secured a 20-year offtake agreement with RWE, which moved the then-fully-subscribed project to financing.
Texas LNG is part of Glenfarne’s permitted North American LNG portfolio, which totals 32.8 million tpy of capacity under development across Alaska, Louisiana, and Texas.
