NextDecade Corp. on April 6 executed a 20-year sale and purchase agreement (SPA) with ENN LNG Pte Ltd for the supply of LNG from NextDecade’s Rio Grande LNG (RGLNG) export project in Brownsville, Texas, according to a press release.
This is the second LNG agreement NextDecade has made in the past two weeks, the first being with China-based Guangdong Energy Group Natural Gas Co. Ltd.
"As one of China’s largest private companies, ENN is a major participant in China’s energy market, and we look forward to a successful, long-term relationship with ENN,” NextDecade chairman and CEO Matt Schatzman said in the press release. “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."
Under the SPA, ENN LNG will purchase 1.5 million metric tonnes per annum (mtpa) of LNG indexed to Henry Hub on a free-on-board basis. The LNG supply will be from the first two trains at Rio Grande LNG, with the first train expected to start commercial operations in 2026.
Assuming the achievement of further LNG contracting and financing, Houston-based NextDecade anticipates making a positive final investment decision on a minimum of two trains of the Rio Grande LNG export project in the second half of 2022. Final investment decisions of its remaining three trains will follow thereafter.
“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," said Zheng Hongtao, President of ENN Natural Gas Co., Ltd. "The signing of this SPA reflects ENN’s goal of promoting the global energy transition and is of significance given RGLNG’s low GHG emissions profile relative to other LNG supply sources."
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