Texas LNG Brownsville, a subsidiary of Glenfarne Energy Transition, has signed a heads of agreement (HOA) with EQT Corporation for natural gas liquefaction services.

The preliminary agreement marks a step towards the finalisation of a definitive 15- year LNG tolling agreement for 0.5 million tonnes per annum (MTPA) from Texas LNG's first production train.

EQT president and CEO Toby Z Rice said: "This HOA with Texas LNG highlights continued momentum behind EQT'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.

"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."

Located in the Port of Brownsville in South Texas, Texas LNG export terminal is due to start production in late 2027 or early 2028. It is expected to have a production capacity of around four million tonnes of LNG per annum.

Glenfarne CEO and founder Brendan Duval said: “We are proud to welcome EQT as a customer and partner for Texas LNG, with our industry-leading low-emissions facility liquefying US natural gas for global markets.

“This is an important milestone for Texas LNG, with additional agreements to be announced in the near-term as we progress towards a Final Investment Decision.”

Last year, Baker Hughes was selected to supply gas compression technology equipment for Glenfarne Energy Transition’s Texas export terminal project.

Baker Hughes was tasked with the responsibility of supplying gas compression technology equipment including electric motor drives for the terminal.