U.S. LNG project developer NextDecade and Chinese utility Guangdong Energy have executed a 20-year sale and purchase agreement (SPA) for the supply of LNG from NextDecade’s Rio Grande LNG export project.
On 6 July, NextDecade announced the execution of a 20-year SPA withGuangdong Energyfor the supply of LNG from NextDecade’s Rio Grande project inBrownsville, Texas. The SPA was completed pursuant to the binding heads of agreement fromMarch 2022.
Under the SPA,Guangdongwill purchase approximately 1.0 million tonnes per annum (mtpa) of LNG indexed toHenry Huband delivered on an ex-ship (DES) basis.
The LNG will come from Rio Grande LNG Train 1, which is to start commercial operations as early as 2026.
Moreover, Guangdonghas the right to purchase an additional 0.5 mtpa of LNG from Rio Grande.
NextDecadeanticipates making a positive final investment decision (FID) on up to three trains of the Rio Grande export project in the second half of 2022. FIDs of its remaining trains are to follow thereafter. This is based on the current expected demand for LNG.
