US liquefied natural gas (LNG) developer NextDecade has executed a significant 20-year sale and purchase agreement (SPA) with EQT.
The deal entails EQT purchasing 1.5 million tonnes per annum (mtpa) of LNG from Rio Grande LNG Train 5.
EQT president and CEO Toby Z. Rice said: "The execution of this agreement represents continued momentum of EQT's LNG strategy, which is focused on further diversifying the company's end-market exposure into the rapidly growing global gas markets and accelerating long-term earnings growth.
“Consistent with our existing LNG deals, EQT will market and optimise its own cargoes, providing structuring flexibility and downside protection.”
This agreement is contingent on NextDecade's positive final investment decision (FID) on Train 5.
NextDecade chairman and CEO Matt Schatzman said: “We have made great strides in the commercialisation of Rio Grande LNG Train 5, and today we are announcing a long-term SPA with EQT, one of the largest producers of natural gas in the US.
“The LNG we are selling from our project to EQT will play a critical role in enhancing the energy security of our allies around the world.”
The company, besides this agreement, has also broadened the price validity duration until 15 November this year under its lump-sum turnkey engineering, procurement and construction (EPC) deal with Bechtel Energy for Train 5.
The overall expenditures for Rio Grande LNG Train 5 and associated infrastructure are expected to be around $6.7bn.
Having already sold 3.5mtpa of LNG from Train 5 under 20-year SPAs, NextDecade is aiming to sell an additional 1mtpa under a long-term SPA to underpin a favourable FID on Train 5.
The company expects to conclude the commercial arrangements for Train 5 by the third quarter (Q3) of this year.
Subject to obtaining adequate financing, NextDecade is optimistic about achieving a positive FID on Train 5 in Q4 2025, before the expiry of the revised EPC price validity period.
Moreover, NextDecade is progressing towards a favourable FID on Rio Grande LNG Train 4 by 15 September 2025, subject to securing sufficient financing.
