The Valley Crossing Pipeline will be expanded to deliver around 720 million cubic ft of natural gas per day to Texas LNG’s export facility
Artistic impression of Texas LNG’s planned liquefaction facilities. (Credit: Business Wire)
Glenfarne Group’s controlled subsidiary Texas LNG Brownsville (Texas LNG) has entered into a pipeline transportation precedent agreement with energy infrastructure company Enbridge to expand the Valley Crossing Pipeline in the US.
Under the deal, the VCP project will be expanded to deliver around 720 million cubic feet of natural gas per day to Texas LNG’s export facility for a period of up to 20 years.
The VCP includes a 160-mile (257.4km) pipeline that originates at major Texas gas hub Agua Dulce and continues to the Port of Brownsville.
To extend the pipeline to Texas LNG’s facility, a 10-mile lateral will be constructed, and new compression facilities will be added to the existing pipeline.
Texas LNG is developing a LNG export terminal, with a capacity of four million tonnes per annum (MTPA), in the Port of Brownsville, South Texas.
Texas LNG founder and CEO Vivek Chandra said: “Enbridge has been a tremendous supporter of Texas LNG from the project’s inception.
“We are pleased that we can leverage Enbridge’s leading natural gas pipeline expertise to safely transport responsible natural gas to our ‘green by design’ LNG facility.”
VCP’s pipeline header at Agua Dulce is said to be interconnected with ten major gas pipeline systems to provide enhanced access to gas from the Permian and other major gas basins with a total receipt capacity of more than seven billion cubic feet per day.
Electric motors will be used by the compression facilities at Agua Dulce. The motors use Texas renewable energy to minimise CO2 emissions.
Enbridge gas transmission and midstream president and executive vice president Bill Yardley said: “Enbridge is committed to the development and advancement of the Valley Crossing Pipeline as it serves Texas LNG and helps the facility meet global LNG demand.
“We welcome the opportunity to expand our pipeline solutions in support of LNG efforts.”
White & Case served as legal advisor for Texas LNG in connection with the deal, while Vinson & Elkins represented Enbridge.