The grassroots Texas LNG project in the US has taken a major step forward with the long-term lease agreement with the Port of Brownsville for the development site.

The lease, for up to 50 years, brings the liquefied natural gas export project — which has already received a permit from the Federal Energy Regulatory Commission (Ferc) — closer to a final investment decision.

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The lease agreement covers a 625-acre site within the Port of Brownsville where Texas LNG plans to construct and operate a 4 million tonnes per annum terminal on a deep-water frontage site previously secured under an exclusive option to the lease agreement.

“The execution of a long-term lease is an important step in the development of Texas LNG,” said company founder Vivek Chandra.

"With these approvals and permits secured, Texas LNG is positioned to pursue a low-cost, flexible commercial model for global customers when operations begin in 2025, delivering to our partners, service providers, investors and customers.”

Meanwhile, the US Department of Energy, Office of Fossil Energy has granted Texas LNG extensions to 31 December 2050 for their earlier awarded LNG export permits.

This allows for total exports of 204 billion cubic feet per annum of natural gas — equivalent to 4 million tpa of LNG — from the export facility to any country, including free trade agreement and non-FTA countries, with which trade is not prohibited by US law or policy.

Texas LNG’s strengths are said to include access to abundant and competitively priced Permian basin feed gas, use of existing pipeline infrastructure, efficient modular construction design, transparent competitive pricing structure and lower-carbon ‘green’ LNG resulting from usage of more efficient electrical drive motors rather than gas-fired engines to drive the liquefaction compressors.

The project proponents added the 4 million tpa size of the facility “fills an important niche from LNG customers seeking smaller contracted volumes to diversify their gas supply portfolio”.