NextDecade Corp. (NextDecade) has announced the execution of a binding Heads of Agreement (HOA) with Guangdong Energy Group Natural Gas Co., Ltd. (Guangdong Energy) for the long-term supply of LNG for 20 years, from NextDecade’s Rio Grande LNG export project in Brownsville, Texas, US.
The HOA provides that Guangdong Energy will purchase up to 1.5 million tpy of LNG indexed to Henry Hub. The LNG supply will initially be from train one of Rio Grande LNG, which is expected to start commercial operations in 2026. The HOA also provides that Guangdong Energy and NextDecade will complete the sale and purchase agreement (SPA) in 2Q22.
“We are honoured to have Guangdong Energy as the second foundation customer of our Rio Grande LNG project and our first Chinese customer,” said Matt Schatzman, NextDecade’s Chairman and CEO. “Guangdong Energy is one of the largest power generation enterprises in Guangdong and we are pleased they have entrusted us to supply their rapidly growing business.”
“We are pleased to be entering into a long-term SPA with NextDecade. Henry Hub-linked LNG will be an important part of our LNG portfolio as we transit to a greener future and optimise our resource procurement,” commented Mr. Zhu Zhanfang, Chairman of Guangdong Energy Natural Gas Co. “We look forward to a long lasting and fruitful cooperation with NextDecade, not necessarily just in LNG supply, but potentially in carbon capture and storage (CCS) as well.”
Assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive Final Investment Decision (FID) on a minimum of two trains of the Rio Grande LNG project in the 2H22.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/25032022/nextdecade-and-guangdong-energy-announce-lng-supply-agreement/
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