NextDecade has entered into a 20-year sale and purchase agreement with JERA, involving the supply of liquefied natural gas (LNG) from the Rio Grande LNG facility's Train 5.

As per the agreement, JERA will purchase two million tonnes per annum (mtpa) of LNG, on a free on board basis, with pricing indexed to the Henry Hub benchmark.

The execution of this agreement is subject to a final investment decision (FID) on Train 5.

NextDecade chair and CEO Matt Schatzman said: “We are pleased to announce JERA, the largest power generator in Japan and a long-established LNG market leader, as a customer for Rio Grande LNG Train 5. We have seen strong commercial momentum this year for Rio Grande LNG, which is helping us commercialise Train 5 toward a positive FID.”

Achieving a FID is contingent upon securing suitable commercial arrangements, finalising an engineering, procurement, and construction contract, and obtaining the necessary financing for the construction of Train 5 and its associated infrastructure.

Located in Texas, US, the Rio Grande LNG facility spans a 984-acre site and is dedicated to producing LNG with a lower carbon intensity.

Once fully operational, the facility is expected to provide energy sufficient to heat and cool approximately 34 million households in the US each year.

This April, NextDecade secured another 20-year agreement with an Aramco subsidiary for the sale of 1.2mtpa of LNG from its Train 4 at the Rio Grande LNG project.

The deal is also contingent on the FID for the expansion of the facility.