Texas LNG Taps Baker Hughes for Gas Compression

Texas LNG has selected Baker Hughes to supply gas compression technology equipment, including electric motor drives, for its liquefied natural gas (LNG) export terminal to be built in the Port of Brownsville, Texas.

Texas LNG, a subsidiary of Glenfarne Energy Transition, LLC, projects the Brownsville terminal to have a capacity of four million metric tons of LNG per annum. As part of the partnership between the two companies, Baker Hughes also has a framework agreement to make a strategic pre-final investment decision (FID) investment in the project’s late-stage development, Texas LNG said in a news release.

Texas LNG will close its project financing in 2024 with construction starting shortly after. The equipment order is expected to be granted together with the financial close of the project. The company expects the first LNG exports from the facility to be shipped in late 2027 or early 2028.

The agreement with Baker Hughes facilitates Texas LNG’s approach of using abundant sources of locally procured renewable energy to power the facility and drive the plant’s electric motors. The green-ready infrastructure allows Texas LNG to eliminate most carbon dioxide emissions to less than half of a typical LNG export project, making it one of the lowest-emitting liquefaction facilities in the world, according to the release.

“We are pleased to be partnering with a world-class organization like Baker Hughes for this critical equipment”, Glenfarne Energy Transition Founder and CEO Brendan Duval said. “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”.

“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”, Baker Hughes Chairman and CEO Lorenzo Simonelli said. “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”.

Samsung Engineering Co., Ltd. owns a minority equity interest in Texas LNG and is leading the delivery of the facility along with Technip Energies USA, according to the release.

FERC Resolution

In May, the Federal Energy Regulatory Commission (FERC) issued an Order on Remand to the Texas LNG project following the completion of an additional social cost of carbon and environmental justice analysis.

The Order on Remand included two modified mitigation requirements regarding air monitoring and emergency response communications that Texas LNG will incorporate into its execution plan, according to an earlier news release.

“Environmental justice and the carbon footprint of our project are among the most important issues we regularly consider as we progress Texas LNG to a final investment decision this year”, Duval said. “We thank the FERC commissioners and staff for bringing this matter to a thoughtful resolution”.

“Texas LNG will bring more than 1,200 new construction jobs and over 100 new full-time jobs to the Rio Grande Valley of which a majority are intended to be hired from the local community. We are eager to begin construction on our facility to be able to safely export clean, environmentally sensible LNG that is ’Green by Design’ around the globe providing long-term energy security when it is critically needed”, Duval added.

Glenfarne Energy Transition, LLC is a subsidiary of Glenfarne Group, LLC, a privately held energy and infrastructure development and management firm based in New York City and Houston, Texas.

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