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July 28, 2022

NextDecade signs 20-year LNG deal with ExxonMobil

NextDecade will supply 1Mtpa of LNG from the first two liquefaction trains at the Rio Grande project.

NextDecade has signed a liquefied natural gas (LNG) sale and purchase agreement (SPA) with ExxonMobil’s affiliate ExxonMobil LNG Asia Pacific (EMLAP) from its proposed Rio Grande LNG export project in Brownsville, Texas.

Under the 20-year SPA, NextDecade will supply one million tonnes per annum (Mtpa) of LNG from the Rio Grande LNG project to ExxonMobil’s affiliate.

NextDecade plans to supply the LNG from the first two liquefaction trains at the Rio Grande project. The first train is planned to be commissioned as early as 2026.

NextDecade chairman and CEO Matt Schatzman said: “The signing of this long-term SPA with ExxonMobil, a global leader in the energy industry, represents another significant milestone for RGLNG and signifies the beginning of a mutually beneficial relationship.

“This agreement highlights the success of NextDecade’s strategy to provide customers with low carbon-intensive LNG to help them meet their carbon reduction goals while providing them access to secure energy supply.”

Based on current anticipated LNG demand and considering further LNG contracting and financing, NextDecade expects to make a positive final investment decision on up to three trains of the Rio Grande project in the second half of this year.

ExxonMobil Upstream LNG senior vice-president Peter Clarke said: “LNG will play an increasingly important role in helping society reduce emissions during the energy transition.”

The Rio Grande project will have a full production capacity approximately 27Mtpa.

Earlier this month, NextDecade signed two SPAs with China Gas and Guangdong Energy Group.

China Gas agreed to purchase 1Mtpa of LNG from the second train at Rio Grande LNG while Guangdong Energy will purchase approximately 1Mtpa of LNG from Rio Grande LNG Train 1.

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