Enbridge, the top Canadian midstream company, will deliver up to 720 million cubic feet per day of natural gas to Texas LNG’s export facility in the Port of Brownsville, South Texas.
Firstly, the supply agreement comes as Texas LNG and its parent company Glenfarne Group agreed on a pipeline transportation precedent agreement for the expansion of the Valley Crossing Pipeline. The agreement was for a term of 20 years.
Moreover, the expansion of the Valley Crossing Pipeline (VCP) consists of a 160-mile; 42- and 48-inch diameter pipeline originating at Agua Dulce; a major Texas gas hub, and extending to the Port of Brownsville.
In addition, the project will add a 10-mile lateral to extend the pipeline to Texas LNG’s facility; along with the addition of compression facilities on the existing pipeline. As a result, the expansion would strengthen VCP’s connections to other facilities.
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Enbridge helping Texas LNG to reach FID
In fact, VCP’s pipeline header at Agua Dulce interconnects with ten major gas pipeline systems; providing access to abundant and competitively priced gas from the Permian and other major gas basins; with a total receipt capacity of more than seven billion cubic feet per day.
Furthermore, the compression facilities at Agua Dulce will use electric motors which can run with plentiful Texas renewable energy, thus reducing CO2 emissions. Bill Yardley, Enbridge’s Executive Vice President, said about the matter. “Enbridge is committed to the development and advancement of the Valley Crossing Pipeline as it serves Texas LNG and helps the facility meet global LNG demand.”
On the other hand, Glenfarne’s founder and CEO Brendan Duval said. “The execution of this agreement is the next of several important milestones Texas LNG will achieve as the facility moves toward a final investment decision.”
He also remarked. “Our agreement with Enbridge helps us accomplish our strategy of delivering LNG to our own gas-consuming projects around the world and to third party customers. We thank Enbridge for their partnership.”
Finally, Texas LNG expects to achieve the final investment decision in 2022 and commercial operations in 2026.
