US energy company Glenfarne Group, through its subsidiary Glenfarne Energy Transition, awarded Baker Hughes a significant contract to supply gas compression technology equipment, including electric motor drives, for its Texas LNG project. The Houston-based Baker Hughes was also granted the ability to take a pre-final investment decision stake in the plant’s late-stage development.
The liquefied natural gas (LNG) export terminal will be built in the Port of Brownsville, Texas, on a 625-acre site with access to the prolific Permian Basin and Eagle Ford gas reserves. It is designed to produce 4 mtpa of LNG for export to global markets.
“We are pleased to be partnering with a world-class organization like Baker Hughes for this critical equipment,” said Brendan Duval, chief executive and founder of Glenfarne Energy Transition. “Baker Hughes’ strategic commitment into Texas LNG further underscores the commitment between the parties on Texas LNG and its strength as a fully permitted, late-stage infrastructure project.”
Texas LNG intends to use locally procured renewable energy to power the facility and drive the plant’s electric motors. According to Glenfarne, the green-ready infrastructure will enable Texas LNG to eliminate most of its carbon dioxide emissions to less than half of a typical LNG export project.
“Natural gas and LNG will continue to play a critical role in the energy transition, and we are pleased to support Texas LNG with our leading technologies and partnership,” said Lorenzo Simonelli, chairman and chief executive of Baker Hughes. “Our decades of experience in the LNG space and our proven solutions will help to ensure greater LNG supply as we work together to balance the energy trilemma of security, sustainability, and affordability.”
Texas LNG will close its project financing in 2024, with construction beginning shortly after that. The equipment order is expected to be granted with the project's financial close. The first LNG exports from Texas LNG are expected to be shipped in late 2027 or early 2028, according to Glenfarne.
