Texas LNG Secures Macquarie Deal, Betting Big on a Low-Carbon Future

HOUSTON, TX – December 03, 2025 – In a move that sends a strong signal about the future of American energy exports, Glenfarne Energy Transition’s Texas LNG project has solidified a critical 20-year offtake agreement with Macquarie Energy. The deal converts a preliminary understanding into a binding contract for 0.5 million tonnes per annum (MTPA) of liquefied natural gas, providing a powerful endorsement from a global financial heavyweight and moving the multi-billion-dollar facility significantly closer to a Final Investment Decision (FID).

This agreement is more than just a commercial milestone; it’s a validation of Texas LNG’s strategic bet on a lower-carbon approach in a traditionally emissions-intensive industry. By securing a long-term commitment from a sophisticated player like Macquarie, the project demonstrates that its innovative, environmentally conscious design is not just a talking point, but a bankable asset in the evolving global energy market.

“Our offtake agreement with Macquarie reinforces Texas LNG’s position as one of the most competitive LNG export projects in the world,” said Brendan Duval, CEO and Founder of Glenfarne Group, in the official announcement. Michael Bennett, a Managing Director at Macquarie, added that the deal reflects their commitment to meeting client energy needs, noting that “LNG is a critical component of the global energy mix.”

The 'Green by Design' Differentiator

At the heart of the project's appeal is its “Green by Design” philosophy. Located in the Port of Brownsville, Texas, the 4 MTPA facility is engineered to be one of the lowest-emitting LNG export terminals in the world. Its primary innovation lies in its core liquefaction process. Instead of using traditional gas-fired turbines—a major source of CO2 emissions—the facility will be powered by electric motor drives.

This all-electric approach, with technology supplied by industry leader Baker Hughes, is designed to be powered by electricity sourced from renewable energy. This strategic choice allows Texas LNG to avoid a majority of its operational emissions from the outset, rather than relying solely on carbon capture or offsets after the fact. The company projects this will reduce the facility’s CO2 emissions to less than half of a typical LNG plant, a compelling proposition for buyers facing increasing pressure to meet their own ESG (Environmental, Social, and Governance) targets.

The project's green credentials have not gone without scrutiny. Its initial permit from the Federal Energy Regulatory Commission (FERC) was challenged by environmental groups, leading a federal court to remand it for further analysis on environmental justice and air quality impacts. However, after a thorough review, FERC re-issued its final order authorizing construction, concluding that the project's mitigation measures would sufficiently address most impacts. This rigorous process, while challenging, ultimately lends more weight to the project's environmental claims, having passed a significant regulatory test.

Paving the Path to Final Investment

The binding agreement with Macquarie is the fourth major offtake deal announced for Texas LNG, providing the commercial foundation necessary to secure project financing. The facility has now secured long-term commitments for a significant portion of its capacity, with previous agreements signed with commodity trader Gunvor Group and a definitive tolling agreement with EQT Corporation, a major U.S. natural gas producer. With these contracts in hand, Glenfarne has stated it has secured sufficient customer commitments to move forward with FID, which it targets by the end of 2025.

Securing these agreements is a critical de-risking step for any large-scale infrastructure project. With an estimated cost of $3.5 billion, Texas LNG requires certainty of future revenue to attract the necessary capital from lenders. The project reports strong interest from project finance banks and has appointed legal counsel to manage the financing phase, which it expects to close in 2024.

Further bolstering confidence is the selection of Kiewit, a top-tier engineering and construction firm, to lead the final design and construction under a lump-sum turnkey contract. This type of agreement transfers much of the construction cost and schedule risk from the developer to the contractor, providing another layer of security for investors. With all major permits now in place and construction expected to begin shortly after financing closes, the facility is on track for its first LNG exports in late 2027 or early 2028.

US LNG's Expanding Role in a Shifting World

The Macquarie deal also highlights the strategic importance of U.S. LNG in the global energy landscape. As nations seek to diversify their energy sources and ensure supply security, reliable, long-term contracts from U.S. producers have become highly sought after. Macquarie, with its vast global commodities trading and logistics network, is positioning itself to connect this new wave of U.S. supply with rapidly growing demand centers around the world.

Macquarie’s participation is particularly noteworthy given its extensive investments in the energy transition. The firm has a multi-billion-dollar fund dedicated to green energy and has long been a major player in renewables. Its investment in a natural gas project, even one with a lower emissions profile, underscores a pragmatic view of the energy transition: natural gas, and specifically LNG, will remain a critical, flexible fuel for decades to come, acting as a bridge away from more carbon-intensive sources like coal.

The Texas Gulf Coast has become the epicenter of America's LNG boom. Texas LNG will join a competitive field of massive projects, including NextDecade’s nearby Rio Grande LNG and Cheniere's Corpus Christi facility. While smaller in scale than some of its neighbors, Texas LNG’s distinct low-emissions value proposition allows it to carve out a premium niche. As the global energy map is redrawn, projects like Texas LNG are not just building infrastructure; they are building a case study for how legacy energy sectors can innovate. The success of its low-emissions model, now backed by major international players, will be a critical benchmark for the next wave of energy projects aiming to power the world more sustainably.