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.

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