ConocoPhillips has entered into a 20-year sales and purchase agreement (SPA) to procure one million tonnes per annum (mtpa) of liquefied natural gas (LNG) from the Rio Grande LNG project.
NextDecade is presently advancing the development of the Rio Grande LNG project in the vicinity of Brownsville, Texas, US.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
ConocoPhillips will offtake LNG on a free-on-board basis, with pricing indexed to the Henry Hub benchmark.
ConocoPhillips chief commercial officer Khoa Dao said: “ConocoPhillips is pleased to announce our agreement with a premier operator in NextDecade at Rio Grande LNG, where we will be a key foundation customer for Train 5.
“We are excited to help move this project closer to FID [final investment decision] while advancing our global LNG portfolio strategy and ten to 15mtpa offtake ambition. We continue to build scale and diversification, adding supply and sales points offering further optionality for optimisation.”
The deal is contingent upon NextDecade’s FID on Train 5.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAccording to NextDecade, Train 5 commercialisation is now complete. The FID on the project is expected in the fourth quarter of 2025, contingent on securing adequate financing.
NextDecade chairman and CEO Matt Schatzman said: “ConocoPhillips has a long history of leadership in LNG and is an outstanding addition to our strong portfolio of LNG buyers from Rio Grande LNG Train 5.
“We have now completed commercialisation of Train 5, and we are focused on finishing the financing and achieving a positive FID.”
Meanwhile, ConocoPhillips’ OCP CryoSep technology will be utilised at the Rio Grande LNG facility to remove heavy hydrocarbon from feed gas.
OCP CryoSep is available both as an integrated unit for the Optimised Cascade process LNG trains and as a stand-alone unit for any LNG liquefaction process.
Last month, ConocoPhillips entered into a 20-year SPA with Sempra Infrastructure, also on a free-on-board basis.
