Glenfarne Energy Transition Has Announced Texas LNG Has Signed an LNG Offtake Agreement with an Affiliate of Top Tier Market Participant

Key Points:

• Agreement Signed:
• Texas LNG Brownsville LLC ("Texas LNG") has signed a non-binding Heads of Agreement ("HOA").
• The agreement is with an affiliate of a top-tier credit-rated market participant.
• The agreement is for a long-term LNG free-on-board ("FOB") sale and purchase agreement ("SPA") for 0.5 MTPA of LNG.
• Texas LNG Overview:
• Texas LNG is a 4 MTPA LNG export terminal.
• Located in the Port of Brownsville, Texas.
• Subsidiary of Glenfarne Energy Transition, LLC.
• Leadership Statement:
• Brendan Duval, CEO and Founder of Glenfarne Energy Transition and Co-President of Texas LNG:
• "This agreement positions Texas LNG on the verge of full sell out, and we look forward to finalizing our offtake partnerships in the near future."
• Project Status:
• Texas LNG is in advanced negotiations with several potential offtakers for the remaining volume.
• Construction scheduled to begin later in 2024.
• Commercial operations scheduled to commence in 2028.
• Glenfarne Energy Transition:
• Developer, owner, and operator of energy transition infrastructure.
• Majority owner and managing member of Texas LNG.
• Portfolio includes the 8.8 MTPA Magnolia LNG export facility in Lake Charles, Louisiana.
  
  

About Texas LNG:

• Facility:
• 4 MTPA LNG export facility.
• Located in the Port of Brownsville, Texas.
• Aims to be one of the cleanest, lowest emitting LNG export facilities globally.
• Utilizes electric motor drives.
  
  

About Glenfarne Energy Transition, LLC:

• Parent Company: Glenfarne Group.
• Headquarters: New York City and Houston, Texas.
• Offices: Dallas, Texas; Panama City, Panama; Santiago, Chile; Bogota, Colombia; Barcelona, Spain; Seoul, South Korea.
• Core Businesses:
• Global LNG Solutions.
• Renewables.
• Grid Stability.
• Operations: Develops, acquires, manages, and operates energy infrastructure assets in North and South America.
  

Overview

• Vitol announced today the company has secured three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).
• Agreement Details:
• Partner: Avenir LNG Limited (Avenir)
• Shipyard: CIMC Sinopacific Offshore & Engineering Co. Ltd in Nantong, China
• Time Charter: Seven to ten years
  
  

Details of the Agreement

• Vessels Secured:
• One newbuild 20,000m3 LNGBV through a time charter agreement with Avenir.
• Time charter starts in Q4 2026 for seven years, with options to extend up to ten years.
• Ordered one 12,500 m3 LNGBV and one 20,000 m3 LNGBV from CIMC SOE shipyard.
• Deliveries in Q4 2026 and Q3 2027 respectively.
  
  

Environmental Benefits

• LNG Advantages:
• Reduces environmental footprint at competitive prices.
• Bio-LNG blending offers long-term compliance with stringent emission regulations.
  
  

Vitol’s Statement

• Mr. Pablo Galante Escobar (Head of LNG, EMEA gas & power, Vitol):
• Emphasized the global need for shipowners to reduce emissions.
• Highlighted Vitol's commitment to investing in LNG/bio-LNG bunkering.
  
  

Vitol’s LNG Background

• Experience: 20 years of LNG trading.
• Global Presence: Traded over 17 million tonnes of LNG worldwide last year.
• Subsidiaries:
• ViGo bioenergy (bio-LNG infrastructure).
• Vitol Bunkers (bunker fuels).
• Capabilities:
• Multi-fuel and decarbonization solutions.
• Range: Conventional marine fuels, biofuels, LNG & bio-LNG, and methanol.
  
  

Summary

• Vitol is significantly enhancing its LNG bunkering capabilities to meet environmental standards and support shipowners globally in reducing emissions.

Segment Overview:

1. Cryo Tank Solutions (CTS)

• Orders: Q1 2024 orders amounted to $159.3 million, marking a decrease of 4.5% year-over-year, primarily due to a significant rail car order in Q1 2023.
• Sales: Sales increased by 13.2% to $159.7 million, driven by rising demand in the EMEA industrial gas market.
• Book-to-Bill Ratio: Maintained at 1.0X, reflecting steady demand.
• Gross Profit Margin: Slightly decreased by 10 basis points to 20.5%.
  
  

2. Heat Transfer Systems (HTS)

• Orders: Experienced a significant decrease of 29.8% to $237.3 million, compared to the prior year, influenced by high project bookings in earlier periods.
• Sales: Increased by 33.9% to $253.6 million.
• Backlog: Stood at $1.69 billion as of March 31, 2024, excluding expected bookings from the IPSMR® BigLNG award.
• Gross Profit Margin: Improved by 160 basis points to 27.6%.
  
  

3. Specialty Products

• Orders: Saw a robust increase of 39.2% to $391.3 million.
• Sales: Increased by 5.5% to $236.5 million, influenced by project timing and pre-production activities for Teddy2.
• Sequential Growth: Sales grew by 10.2% from Q4 2023.
• Gross Profit Margin: Decreased to 24.9%, impacted by project mix and a first-of-a-kind project.
  
  

4. Repair, Service and Leasing (RSL)

• Orders: Reached a record $333.9 million, up 10.5% year-over-year.
• Sales: Increased by 13.9% to $301.0 million.
• Gross Profit Margin: Significantly increased by 1,450 basis points to a record 46.7%, reflecting high profitability in this segment.