NextDecade Secures Third 20-Year LNG Supply Deal This Year with China Gas
NextDecade Corp. has executed a 20-year sale and purchase agreement (SPA) with China Gas Holdings Ltd. for the supply of LNG from NextDecade’s Rio Grande LNG export project (RGLNG) in Brownsville, Texas.
Under the SPA, China Gas will purchase 1.0 million tonnes per annum (MTPA) of LNG indexed to Henry Hub and delivered on a free-on-board (FOB) basis. The LNG will be supplied from the second train at Rio Grande LNG, which is expected to start commercial operations as early as 2027.
This is the fourth long-term agreement NextDecade has made this year, the first being with China’s Guangdong then ENN LNG, both for 20 years, then in May it signed a 15-year deal with France’s Engie.
“The signing of this long-term SPA with NextDecade will further optimize China Gas's portfolio, expand resource supply channels, and ensure that we can meet our customers' growing demand for quality, reliable and low carbon content energy. This SPA demonstrates China Gas's determination to unswervingly implement China’s national low-carbon energy development strategy,” Yalong Qi, general manager of China Gas Hongda Energy Trading Co. Ltd.
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.
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