NextDecade inks another deal with China
US LNG developer NextDecade said July 6 it had signed another 20-year sale and purchase agreement (SPA) with a Chinese buyer, this time with Guangdong Energy Group.
The SPA, for 1mn mt/yr of LNG from Train 1 of NextDecade’s proposed Rio Grande LNG project in Texas, is indexed to Henry Hub and delivered ex-ship (DES). It comes a day after a SPA was signed with China Gas Hongda Energy Trading, also for 1mn mt/yr from Rio Grande.
Train 1 at the South Texas terminal is anticipated to come online as early as 2026, and Guangdong Energy has the right to purchase a additional 500,000 mt/yr from Rio Grande LNG.
“We are pleased to announce this SPA with Guangdong Energy, one of the largest power generation companies in Guangdong Province in southeastern China,” NextDecade CEO Matt Schatzman said. “Rio Grande’s differentiated offering of a lower carbon-intensive LNG continues to drive our commercial momentum and we look forward to working with Guangdong Energy over the coming years to help further reduce their greenhouse gas emissions.”
NextDecade anticipates making a final investment decision on the first three trains at the five-train, 27mn mt/yr Rio Grande terminal in the second half of this year, with decisions on the remaining two to follow thereafter.