As reported by PG Online, Texas LNG Brownsville, a subsidiary of Glenfarne Group, and Enbridge Inc., an energy infrastructure company, have executed a pipeline transportation precedent agreement for the expansion of the Valley Crossing Pipeline (VCP) to deliver about 720 million cubic feet per day of natural gas to Texas LNG’s export facility for a term of at least 20 years.

Valley Crossing connects in the Gulf of Mexico with Sur de Texas-Tuxpan, a new 450-mile pipeline in Mexico, that has created the biggest gas pipe in existence between the two countries.

VCP consists of a 160-mile 42- and 48-inch diameter pipeline originating at Agua Dulce, a major Texas gas hub, and extending to the Port of Brownsville. A 10-mile lateral will be built to extend the pipeline to Texas LNG’s facility, along with the addition of compression facilities on the existing pipeline.

From the Enbridge website:

Valley Crossing has already delivered plenty of economic benefits north of the Rio Grande, as well, and is expected to do so well into the future. According to a University of Texas Rio Grande Valley impact study:

  • The construction phase created more than 3,300 jobs, andgenerated more than $452 million in labor income, with $137 million in value added, for a total economic impact of $275 million in South Texas;
  • The operations phase is expected to generate an estimated $183 million in property taxes for South Texas counties over 35 years;
  • The operations phase is also expected to generate an estimated 142 jobs, $10.9 million in labor income, and $10 million in value added, for an economic impact of $19 million in South Texas over the next 35 years.

The agreement is subject to routine conditions precedent and other industry standard provisions.