Here’s what we know about a second LNG export terminal at the Port of Brownsville

About a decade ago, three companies proposed to export liquified natural gas from the Port of Brownsville to overseas customers: NextDecade LNG, Anova LNG and Texas LNG.

Since then, one company has invested billions of dollars to construct export terminals, a second company has dropped out of the race and a third is nearing an investment decision. 

Liquefied natural gas is a compressed supercooled product often exported overseas as an alternative energy source to nations without domestic energy extraction industries, such as many European and Asian countries. 

The first company, Houston-based NextDecade Corp., began constructing the first phase of its Rio Grande LNG export terminal at the Port of Brownsville in October 2023. The company has reached a final investment decision for five out of 10 potential liquefaction trains on a sprawling 1000-acre site at the port – which would produce 60 million tonnes per annum. NextDecade Corp. hired Betchel Energy as its construction company. 

A second company, Chicago-based Exelon Corp., scrapped plans for its 6.5 million tonnes per annum export terminal known as Annova LNG in Brownsville in March 2021. 

And now, Texas LNG, which has dual headquarters in New York City and Houston, is considering exporting 4 million tonnes per annum from a 625-acre site inside the Port of Brownsville. 

If the project moves forward, Texas LNG is projected to require 1,200 construction jobs and add 100 full-time roles to the Rio Grande Valley. In exchange, the company has a tax abatement from Cameron County. 

But the company has pushed back its final investment decision, which would allow it to move forward, for the past two years. 

LNG companies rely on securing long-term customer contracts to purchase the liquified natural gas product before making an investment decision. 

So far, Texas LNG has long-term contracts with EQT Corporation, Gunvor Group, and Macaquire Energy totaling 3 million tonnes per annum – that means a majority of the project’s potential product already has a buyer. 

Texas LNG already tapped Kiewit Engineering Group Inc. to lead construction and Gulf LNG Tugs of Texas LLC to build, deliver and operate tug boats to assist export vessels in the shipping channel. 

In August, Texas LNG issued its final supplemental impact statement for the export terminal to federal regulators. 

The company expects to make a final investment decision on the Brownsville project by the end of the year. If that happens, it could complete construction by 2029. 

“Texas LNG is moving rapidly towards a targeted year-end Final Investment Decision,” Brendan Duval, CEO of Glenfarne, said in a recent news release. “With the advanced state of project financing and completion of the FERC process last month, this project is poised to unlock the superior benefits of clean, reliable U.S. LNG.”

The U.S. is already the largest exporter of LNG in the world and is on track to double its capacity by 2030, according to the U.S. Energy Information Administration.