NextDecade, ConocoPhillips LNG offtake deal completes commercialization of Rio Grande LNG Train 5
NextDecade Corp. has completed commercialization of Rio Grande LNG Train 5 with a long-term LNG offtake agreement signed with ConocoPhillips Co.
The 20-year LNG sale and purchase agreement calls for NextDecade to supply ConocoPhillips with 1.0 million tonnes/year (tpy) of LNG on a free on board basis at a price indexed to Henry Hub.
The agreement is subject to NextDecade making a positive final investment decision (FID) on Train 5, which is expected in this year’s fourth quarter subject to obtaining adequate financing, the company said in a release Sept. 8.
“We have now completed commercialization of Train 5, and we are focused on finishing the financing and achieving a positive FID,” said Matt Schatzman, NextDecade chairman and chief executive officer.
A total of 4.5 million tpy of LNG from Train 5 is now under 20-year contracts, which the company believes “is sufficient to support a positive FID,” NextDecade said.
NextDecade also expects to reach positive FID on Rio Grande LNG Train 4 soon. Subject to obtaining adequate financing, the company expects FID by Sept. 15, 2025.
The company is developing and constructing the Rio Grande LNG natural gas liquefaction and export plant near Brownsville, Tex., with about 48 million tpy of potential liquefaction capacity currently under construction or in development.