NextDecade Signs 20-Year LNG Supply Deal with Portugal's Galp

(Reuters) — NextDecade Corp. said on Tuesday it will supply 1 million metric tonnes per annum (MTPA) of LNG to Portugal's Galp Trading SA for 20 years from its Rio Grande LNG export project in Brownsville, Texas.

Long-term U.S. LNG deals have picked up with customers in Europe as sanctions on Russian fuel squeeze an already tightly supplied market.

"We look forward to helping Galp, as well as other European companies and their customers, meet their energy needs by offering a lower-cost, reliable source of LNG with lower carbon-intensity," said NextDecade's CEO Matt Schatzman in a statement.

Shares of the company rose 7.8% in pre-market trade to $4.45.

The LNG-supply deal is indexed to Henry Hub on a free-on-board basis, the company added.

Earlier in July, the company signed a similarly sized deal for 1 MTPA of LNG supply lasting 20-years with a unit of Exxon Mobil Corp.

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