NextDecade Executes 15-Year US LNG Deal with France’s Engie

(P&GJ) — NextDecade Corp. announced the execution of a 15-year sale and purchase agreement (SPA) with Engie SA for the supply of LNG from NextDecade’s Rio Grande LNG export project (RGLNG) in Brownsville, Texas.

Under the SPA, Engie will purchase 1.75 million metric tonnes per annum (MTPA) of LNG on a free-on-board basis. The LNG supply will be from the first two trains of Rio Grande LNG, with the first train expected to start commercial operations as early as 2026.

NextDecade aims to reduce CO2 emissions from RGLNG by more than 90% via carbon capture and storage. Combined with responsibly sourced gas and the use of net-zero electricity, NextDecade intends to produce a lower carbon-intensive LNG for its customers.

We are pleased to announce this SPA with Engie, a significant European energy supplier and leader in the global transition toward lower carbon energy solutions,” Matt Schatzman, NextDecade’s chairman and CEO, said. “The signing of this SPA is an important step in showing our commitment in the areas of environmental stewardship, social responsibility, and governance best practices, while upholding the LNG industry’s highest standards. It also shows how we can help meet our buyers' climate change initiatives, while providing them access to secure energy supply.”

Assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive final investment decision on a minimum of two trains of the Rio Grande LNG export project in the second half of 2022, with FIDs of its remaining three trains to follow thereafter.

 

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