Glenfarne's Texas LNG Signs 20-Year Supply Agreement with BGN

Glenfarne Global Commodities has signed a heads of agreement with BGN for the long-term supply of 1 MMtpy of LNG from the Texas LNG project in Brownsville, with the companies targeting a 20-year sales agreement.

(P&GJ) — Glenfarne Global Commodities (GGC), the LNG marketing and trading subsidiary of Glenfarne Group, has signed a heads of agreement (HOA) with global commodities trader BGN to supply 1 million metric tons per annum (MMtpy) of liquefied natural gas from the proposed Texas LNG export project in Brownsville, Texas.

The companies intend to negotiate a definitive 20-year LNG sale and purchase agreement (SPA) under the HOA. Final terms remain subject to negotiation and execution of the long-term contract.

The agreement supports Glenfarne's strategy of expanding its LNG marketing and trading business while advancing development of its Texas LNG export facility.

"This agreement with BGN reflects the continued growth of Glenfarne Global Commodities as a global LNG portfolio business," said Brendan Duval, founder and CEO of Glenfarne Group. "By pairing LNG production assets with an integrated trading and marketing platform, Glenfarne is creating the flexibility to deliver secure and reliable LNG to customers where demand is growing."

BGN, a privately owned global energy and commodities trading company, operates in more than 120 countries and trades LNG, LPG, crude oil, refined products, biofuels and other energy commodities.

Company officials said the HOA establishes the framework for a long-term commercial relationship as both companies seek to meet growing global demand for LNG.

"Expanding our LNG business is an important part of BGN's global growth strategy," said Wael Amer, group chief operating officer of BGN. "Glenfarne's integrated LNG platform and growing production portfolio make it a compelling long-term partner that will help us meet our customers' need for reliable, flexible LNG supply."

Glenfarne said GGC was established to expand the company's LNG marketing, trading and portfolio optimization capabilities. The company added that Texas LNG is progressing toward a final investment decision, while the Alaska LNG project continues to expand its North American LNG portfolio.

According to Glenfarne, its permitted LNG development portfolio totals 32.8 MMtpy of capacity across projects in Alaska, Louisiana and Texas.