NextDecade, the developer of the Rio Grande LNG export plant in Texas, said it has signed a deal to supply liquefied natural gas to a unit of Chinese independent gas distributor ENN.
Under the 20-year sales and purchase deal, ENN LNG would buy 1.5 mtpa of LNG indexed to Henry Hub on a free-on-board basis, according to a statement by NextDecade.
The LNG supply would come from the first two trains of the planned Rio Grande LNG terminal in Brownsville, Texas.
NextDecade expects to start commercial operations at the first train in 2026.
The firm first aims to build two liquefaction trains with a capacity of 11 mtpa while the full project would include five trains with a capacity of 27 mtpa.
This deal follows a contract NextDecade announced last week. Under that 20-year HoA, NextDecade would supply up to 1.5 mtpa of LNG indexed to Henry Hub to Guangdong Energy Group Natural Gas.
However, NextDecade still needs to take a final investment decision on the project.
Assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive FID on a minimum of two trains of the Rio Grande LNG export project in the second half of 2022, the firm confirmed on Wednesday.
FIDs of the remaining three trains would follow thereafter, it said.
“This SPA underscores the strength of NextDecade’s differentiated offering. The commercial momentum at RGLNG is accelerating and we believe the company is well placed to benefit from the strengthening LNG market,” Matt Schatzman, NextDecade’s CEO, said.
“This agreement secures additional volume for our LNG portfolio and helps ensure we can meet the growing demand for secure, flexible, and cleaner energy for our customers in the future,” Zheng Hongtao, president of ENN Natural Gas,said.
