NextDecade Corp. has entered into a 20-year LNG supply agreement with Shell NA LNG LLC. The agreement with Shell is for 2 million tonnes/year of LNG from NextDecade’s 27 million-tonne/year Rio Grande LNG plant at the Port of Brownsville in South Texas (OGJ Online, Sept. 10, 2018).
Shell will purchase LNG on a fob basis starting from the commercial operation date of Rio Grande LNG, currently expected in 2023. About 75% of the purchased LNG volumes will be indexed to Brent and the remaining volumes indexed to US gas indices, including Henry Hub.
The agreement is the first-ever long-term contract with LNG produced out of the US to be indexed to Brent and comes with full destination flexibility.
NextDecade anticipates making a positive final investment decision on up to three trains (Phase I) of the Rio Grande LNG project by the end of this year’s third quarter, pending the achievement of further commercial milestones and receipt of requisite regulatory approvals.
