NextDecade signs Rio Grande LNG supply deal with JERA subject to Train 5 FID

NextDecade Corp. has signed a 20-year deal with JERA Co. Inc. for LNG offtake from Train 5 at the Rio Grande LNG plant in Brownsville, Tex. 

Under the terms of the agreement, JERA will purchase 2.0 million tonnes/year of LNG on a free on board basis at a price indexed to Henry Hub, subject to a positive final investment decision (FID) on Train 5.

Achieving a positive FID on Train 5 will be subject to, among other things, entering appropriate commercial arrangements, entering into an engineering, procurement, and construction agreement, and obtaining adequate financing to construct Train 5 and related infrastructure, the company said.

The company is currently constructing the first three liquefaction trains (Phase 1) and progressing work to commercialize Rio Grande LNG Trains 4-5.