Glenfarne set to decide to build Texas LNG export plant in 2023

(Reuters) - U.S. energy company Glenfarne Group LLC said on Monday it expects to make a final investment decision (FID) in 2023 to build its proposed Texas LNG export plant in Brownsville with first liquefied natural gas (LNG) production expected in 2027.

Glenfarne made the FID announcement after the U.S. Federal Energy Regulatory Commission (FERC) issued an order on Friday on air monitoring and emergency response communications that the company said Texas LNG will incorporate into its plan.

Glenfarne said it plans to reduce carbon dioxide emissions by using renewable energy to power the facility.

Glenfarne is one of about a dozen companies hoping to make FIDs in 2023 to build proposed LNG export plants in the United States, Canada and Mexico.

Many of those projects, like Glenfarne's, have been delayed for years due to coronavirus-related demand destruction, U.S.-China trade disputes and other factors that made LNG buyers hesitant to sign the long-term purchase agreements needed to finance the multibillion-dollar projects.

Glenfarne is different from most other U.S. LNG companies because it is also buys LNG to fuel operating power plants and plans to consume even more LNG as it develops more power projects around the world.

In addition to producing LNG for its own plants, Glenfarne has said it also wants to sell LNG to other companies to help finance its projects.

Texas LNG is designed to produce about 4 million tons per annum (MTPA) of LNG.

On average, it costs about $800-$1,000 per ton to build an LNG export plant, so the Texas LNG project would likely cost between $3.2 B-$4 B.

Glenfarne said the Texas LNG project would create about 1,200 construction jobs and over 100 full-time positions.

Glenfarne is also developing the 8.8-MTPA Magnolia LNG export plant in Louisiana.

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