NextDecade Corp., Houston, executed a 20-year contract with Guandong Energy Group to supply liquefied natural gas (LNG) from its 27-million tonne/year (tpy) Rio Grande LNG liquefaction plant in Brownsville, Tex.
The agreement was completed pursuant to the binding heads of agreement noted in March 2022.
Under the agreement, Guandong Energy will purchase 1.0 million tpy of LNG indexed to Henry Hub and delivered on an ex-ship (DES) basis from NextDecade’s first train of Rio Grande LNG, which is expected to start commercial operations as early as 2026. Guangdong Energy Group has the right to purchase an additional 0.5 million tpy of LNG from the plant.
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.
The agreement comes on the heels of NextDecade’s 20-year LNG supply contract with China Gas Hongda Energy Trading Co. Ltd. (OGJ Online, July 5, 2022).