NextDecade pens long-term LNG supply deal with Galp

NextDecade, the developer of the Rio Grande LNG export plant in Texas, has signed a long-term deal to supply liquefied natural gas to Portuguese energy firm and LNG player Galp.

Under the 20-year sales and purchase deal, Galp would buy from Rio Grande LNG one million tons per annum of LNG, according to a statement by Galp released on Tuesday.

Commercial deliveries of Next Decade’s Rio Grande LNG project in Texas are expected to start in 2027.

Galp’s volumes are indexed to Henry Hub on a FOB basis plus a fixed liquefaction fee, it said.

“This agreement enhances Galp’s access to competitive US LNG volumes, supplementing supplies from Venture Global, which are due to start during 2023,” Galp said.

It also adds more flexibility and geographic diversity to its sourcing portfolio, the firm said.

Rio Grande LNG site works

NextDecade and compatriot engineering and construction giant Bechtel are moving forward with early construction works to prepare the Rio Grande site located in the Port of Brownsville, Texas.

NextDecade said in a separate statement it is currently targeting a positive final investment decision (FID) on the first three trains of the LNG export project during the first quarter of 2023, with FIDs of its remaining trains to follow thereafter.

It previously planned to take the decision by the end of this year.

The full Rio Grande project would include five trains with a capacity of 27 mtpa.

Besides this contract with Galp, NextDecade signed several LNG supply deals this year, including with compatriot ExxonMobil, China’s Guangdong EnergyChina GasENN, and France’s Engie.

Last month, NextDecade also won a two year-extension from FERC to complete construction of and make available for service the Rio Grande LNG terminal until November 22, 2028.

(Article updated to include a statement by NextDecade.)

Most Popular

Aramco eyes large LNG portfolio

Aramco's long-term ambition is to have a portfolio of 20 million tonnes per annum (mtpa) of LNG capacity, according to Aramco’s CEO, Amin Nasser.

Argentina’s Southern Energy takes FID on second FLNG

Argentina's Southern Energy takes FID on second FLNG

YPF CEO sees FIDs on FLNG projects with Eni, Shell in Q1 2026

Argentina’s state-owned oil and gas company YPF and its partners Eni and Shell may take final investment decisions on two stages of the Argentina LNG project in the first quarter of 2026, according to YPF CEO Horacio Marin.

More News Like This

NextDecade plans to decide on two Rio Grande LNG trains in September

US LNG firm NextDecade plans to take final investment decisions to build the fourth and fifth trains at the Rio Grande LNG facility in Texas in September.

US FERC issues final SEIS for NextDecade’s Rio Grande LNG project

The US Federal Energy Regulatory Commission (FERC) has released a final supplemental environmental impact statement for NextDecade's Rio Grande LNG facility and the accompanying pipeline in Texas. FERC continues to conclude that approval of the projects would result in "less than significant impacts."

NextDecade, Bechtel agree $9 billion EPC deals for two Rio Grande LNG trains

US LNG firm NextDecade and compatriot Bechtel have finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.

Japan’s Jera seals US LNG supply deals

Japan's power firm and LNG trader Jera has signed 20-year agreements to buy up to 5.5 million tonnes per year of LNG from the United States. The deals include an SPA with Commonwealth LNG and the previously announced SPA with NextDecade, as well as heads of agreements with Sempra Infrastructure and Cheniere.