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

- Gas Gathering Pipeline Rules: A New Beginning
- Natural Gas Pipeline Explodes in Fort Bend County, Texas
- DNV Confirms Feasibility and Maturity of EastMed Gas Pipeline
- Williams to Move Forward with Louisiana Natural Gas Project in Haynesville Basin
- Manchin Appears to Have Secured Pro-Energy Side-Deal with White House
- Qatar Petroleum Maintains Scope of LNG Expansion, Postpones Production — CEO
- Argentina Launches Tender to Build New Vaca Muerta Gas Pipeline
- Bulgaria to Receive US LNG Deliveries Starting in June
- Tanzania Signs Gas Project Deal with Equinor, Shell
- ONGC Expects Sanctions to Further Delay Russia's Sakhalin 1 Oil Project
Comments