The Port of Brownsville has entered into a long-term lease agreement with Texas LNG Brownsville LLC (Texas LNG). In doing so, the Texas LNG export project site is secured for up to 50 years.
The lease agreement covers a 625-acre site located within the Port of Brownsville. Texas LNG plans to construct and operate a 4 million tpy LNG export terminal on a deepwater frontage site previously secured under an exclusive option to the lease agreement.
Vivek Chandra, founder and CEO of Texas LNG LLC (a minority owner of the Texas LNG project), said: “We appreciate the ongoing support from the Port of Brownsville. The execution of a long-term lease is an important step in the development of Texas LNG.
“With these approvals and permits secured, Texas LNG is positioned to pursue a low-cost, flexible commercial model for global customers when operations begin in 2025, delivering to our partners, service providers, investors, and customers.”
The lease agreement brings the FERC permitted project closer to a final investment decision, while also confirming to LNG buyers that Texas LNG is well-positioned to support the continued growth of the LNG market.
Separately, the US Department of Energy, Office of Fossil Energy (DOE/FE) has granted Texas LNG extensions on their previously issued LNG export permits to December 31, 2050.
The DOE/FE orders allow total exports of 204 billion ft3/yr of natural gas, equivalent to 4 million tpy of LNG from Texas LNG’s facilities to any country, including free trade agreement (FTA) and non-FTA countries, with which trade is not prohibited by US law or policy.
For more information visit www.txlng.com