NextDecade in SPA with Japan’s Itochu for Rio Grande LNG

US LNG developer NextDecade said January 19 it had executed a 15-year sale and purchase agreement (SPA) with Japan’s Itochu for 1mn metric tons/year of LNG from its proposed Rio Grande LNG project in Texas.

The SPA with the Japanese trading house follows deals late last year to increase offtake by the Singapore subsidiary of China’s ENN Natural Gas from Rio Grande to 2mn mt/yr from 1.5mn mt/yr over 20 years and a new SPA with Portugal’s Galp Trading for 1mn mt/yr over 15 years.

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“We look forward to providing Itochu and their customers with LNG, and we are actively working to reduce the carbon footprint of the Rio Grande LNG facility through our proposed carbon capture and storage project,” NextDecade CEO Matt Schatzman said.

Rio Grande LNG, located near Brownsville, Texas, is envisioned as a five-train, 27mn mt/yr export facility that will incorporate carbon capture and storage (CCS) capabilities, being developed by another NextDecade subsidiary, NEXT Carbon Solutions. An estimated 5mn mt/yr of CO₂ will be captured and permanently stored, making Rio Grande the first and only US LNG project offering CO₂emissions reduction of more than 90%.

NextDecade expects to make a final investment decision on the first three 5.4mn mt/yr trains in the first quarter this year, with the remaining two trains expected to be sanctioned thereafter.