NextDecade inks long-term LNG supply deal with China’s Guangdong Energy

NextDecade, the developer of the Rio Grande LNG export plant in Texas, said it has finalized its previously announced deal to supply liquefied natural gas to Chinese state-owned utility Guangdong Energy.

The two firms revealed the memorandum of understanding on March 24 and now they executed a 20-year sale and purchase agreement, according to a statement by NextDecade on Wednesday.

Under the SPA, NextDecade would supply up to 1 million tonnes per annum of LNG indexed to Henry Hub and delivered on an ex-ship basis to Guangdong Energy, it said in the statement.

Guangdong Energy has the right to purchase an additional 0.5 mtpa of LNG from Rio Grande.

The LNG supply would initially come from the first train of the planned Rio Grande LNG terminal in Brownsville, Texas. NextDecade expects to start commercial operations at this unit in 2026.

The US firm previously said it 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.

FID in second half?

NextDecade said on Wednesday it expects making a positive final investment decision 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.

Matt Schatzman, chairman and CEO of NextDecade, welcomed the deal with Guangdong Energy, one of the largest power generation companies in Guangdong Province in Southeastern China.

“RGLNG’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,” he said.

This deal comes just a day after NextDecade revealed a long-term contract with a unit of Hong Kong-based natural gas operator and distributor, China Gas.

Prior to that, NextDecade signed a deal with France’s Engie and a contract with a unit of Chinese independent gas distributor ENN.

- Advertisements -

Most Popular

Interview: GTT’s boss expects more than 450 LNG carrier orders in next 10 years

French LNG containment giant GTT is expecting that there will be more than 450 orders for large LNG carriers...

Construction progress continues on Golden Pass LNG export plant

Energy giants QatarEnergy and ExxonMobil released the latest construction update for their Golden Pass liquefied natural gas (LNG) export...

Cheniere, OMV seal long-term LNG supply deal

US LNG exporting giant Cheniere has signed a long-term deal with Austrian energy firm OMV to supply the latter...

More News Like This

ABB bags Rio Grande LNG gig

Swiss engineering group ABB has won a contract from Bechtel to provide automation and other solutions for NextDecade’s Rio...

NextDecade plans to take FID on fourth Rio Grande LNG train in H2 2024

US LNG firm NextDecade is planning to take a final investment decision to build the fourth liquefaction train at...

NextDecade officially kicks off Rio Grande LNG work

US LNG firm NextDecade has officially started building the first phase of its Rio Grande LNG export project in...

NextDecade gets $356 million loan for Rio Grande LNG

US LNG firm NextDecade has secured a loan worth $356 million to finance a portion of the first phase...