NextDecade pens long-term LNG supply deal with ExxonMobil

NextDecade, the developer of the Rio Grande LNG export plant in Texas, has signed a long-term deal to supply liquefied natural gas to a unit of US energy giant ExxonMobil.

Under the 20-year sales and purchase deal, ExxonMobil LNG Asia Pacific would buy from Rio Grande LNG one million metric tonnes of LNG, 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.

However, the firm still needs to take a final investment decision on the project.

NextDecade said it anticipates making a positive FID on up to three trains of the Rio Grande LNG export project in the second half of 2022, with FIDs of its remaining trains to follow thereafter.

“The signing of this long-term SPA with ExxonMobil, a global leader in the energy industry, represents another significant milestone for RGLNG and signifies the beginning of a mutually beneficial relationship,” Matt Schatzman, NextDecade’s CEO said in the statement.

Prior to this contract, NextDecade signed deals with China’s Guangdong Energy, China Gas, ENN, and France’s Engie.

On the other side, ExxonMobil has been also active in the LNG industry this year. The firm took a stake in the giant Qatari LNG expansion project, and signed long-term LNG supply deals with compatriot Venture Global LNG.

“LNG will play an increasingly important role in helping society reduce emissions during the energy transition,” Peter Clarke, senior VP of LNG for the ExxonMobil Upstream Company, said in the statement.

“We look forward to working with NextDecade to continue growing ExxonMobil’s LNG portfolio,” Clarke said.

Most Popular

Abaxx sees significant volume growth in its LNG futures

Abaxx Commodity Futures Exchange, a wholly owned subsidiary of Abaxx Technologies (CBOE:ABXX) has seen significant volume growth in its physically deliverable LNG futures during the past summer months, according to Abaxx Exchange Chief Commercial Officer Joe Raia.

GTT develops new LNG fuel tank

French LNG containment giant GTT has developed a new cubic-shaped LNG fuel tank for commercial vessels, with a particular focus on LNG-fueled container vessels.

Another steam LNG carrier sold for demolition

An NYK-managed steam liquefied natural gas (LNG) carrier has been sold for demolition, according to brokers.

More News Like This

Baker Hughes scores contract for fourth Rio Grande LNG train

US energy services firm Baker Hughes has secured a contract from compatriot engineering company Bechtel to supply main liquefaction equipment for Train 4 of NextDecade’s Rio Grande LNG facility in the Port of Brownsville, Texas.

NextDecade takes FID on fourth Rio Grande LNG train

US LNG firm NextDecade has made a final investment decision on the fourth train at its Rio Grande LNG facility in Texas.

NextDecade, ConocoPhillips seal 20-year Rio Grande LNG SPA

US energy giant ConocoPhillips has signed a deal with compatriot NextDecade to buy LNG from the planned fifth train at the latter's Rio Grande LNG facility in Texas. With this deal, NextDecade completed commercialization of Train 5.

NextDecade raises roof on first Rio Grande LNG tank

US LNG developer NextDecade and compatriot EPC contractor Bechtel have completed lifting the roof on the first storage tank as part of the first phase of the Rio Grande LNG export plant in Texas.