NextDecade Inks 20-Year LNG Supply Deal with Guangdong Energy Group
NextDecade Corp. has entered a 20-year sale and purchase agreement (SPA) with Guangdong Energy Group for the supply of LNG from NextDecade’s Rio Grande LNG export project (RGLNG) in Brownsville, Texas.
Under the SPA, Guangdong Energy Group will purchase approximately 1.0 million tonnes per annum (MTPA) of LNG indexed to Henry Hub and delivered on an ex-ship basis. The LNG will be supplied from Rio Grande LNG Train 1, which is expected to start commercial operations as early as 2026. Guangdong Energy Group has the right to purchase an additional 0.5 MTPA of LNG from RGLNG.
“We are pleased to announce this SPA with Guangdong Energy, one of the largest power generation companies in Guangdong Province in Southeastern China,” Matt Schatzman, NextDecade chairman and CEO, said. “RGLNG’s differentiated offering of a lower carbon-intensive LNG continues to drive our commercial momentum and we look forward to working with Guangdong Energy over the coming years to help further reduce their greenhouse gas emissions.”
Based on current expected demand for LNG and assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive final investment decision (FID) on up to three trains of the Rio Grande LNG export project in the second half of 2022, with FIDs of its remaining trains to follow thereafter.
The SPA was completed pursuant to the binding heads of agreement previously announced on March 24, 2022.
Related News
Related News
- US Energy Regulator's Future Shaky as Senator Manchin Refuses Hearing
- TC Energy Hires Contractor to Lay 715-km Stretch of $4.5 Billion Offshore Gas Pipeline
- US Sells Oil from Emergency Reserve to Marathon, Equinor, Others
- Integrity's Newest Ally: PRCI’s Mechanical Damage Strategic Research Priority
- Enbridge Approves $2.7 Billion Expansion of Southern B.C. Pipeline System
- ESPO Pipeline Expansion Nears Completion, Asia-Pacific Counts for a Third of Russian Oil Shipments
- New Methane Fee Could Hit Pipelines Hard
- Equitrans Wants US Legislation to Help Finish Mountain Valley Gas Pipeline
- Snam to Invest $3.8 Billion in Italy's Gas Network, Including Proposed Adriatic Pipeline
- Editor’s Notebook: Sabotage at the Highest Level?
Comments