NextDecade Corp., Houston, executed a 20-year contract with China Gas Hongda Energy Trading Co. Ltd., a subsidiary of China Gas Holdings Ltd., to supply liquefied natural gas (LNG) from its 27-million tonne/year (tpy) Rio Grande LNG liquefaction plant in Brownsville, Tex.
Under the agreement, China Gas will purchase 1.0 million tpy of LNG indexed to Henry Hub on a free-on-board basis from NextDecade’s second train of Rio Grande LNG, which is expected to start commercial operations as early as 2027.
Assuming further sales agreements and financing and based on current expected demand for LNG, NextDecade anticipates making a positive final investment decision (FID) on up to three Rio Grande trains in second-half 2022, with FIDs of its remaining trains to follow.
