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NextDecade pens two more LNG
deals with Chinese buyers
CONTRACTS US LNG developer NextDecade has signed sup- of the remaining two at a later stage.
ply deals with two more Chinese buyers, cover- These mark the second and third supply deals
ing the delivery of a combined 2mn tonnes per that NextDecade has struck with Chinese buyers.
year (tpy) of the fuel. In April it signed a 20-year agreement for 1.5mn
On July 5, the company announced signing a tpy of supply from Rio Grande to ENN Natural
20-year LNG agreement with China Gas Hongda Gas.
Energy Trading for 1mn tpy of supply from the “Rio Grande’s differentiated offering of a
Rio Grande LNG terminal it is developing in lower carbon-intensive LNG continues to drive
Texas. The first batch is expected to be delivered our commercial momentum,” company CEO
in 2027, and supplies will be made on a free-on- Matt Schatzmann said in a statement.
board (FOB) basis, with the price indexed to the NextDecade also agreed to sell LNG to
Henry Hub benchmark. France’s Engie in early May, covering 1.75mn tpy
The following day NextDecade said it had of supply from Rio Grande over 15 years. Engie
agreed to sell 1mn tpy of LNG from Rio Grande had previously abandoned talks over a potential
to Guangdong Energy Group, with an option for $7bn, 20-year contract to buy LNG from Rio
the Chinese firm to take an additional 500,000 Grande in 2020. It reportedly came under pres-
tpy. This agreement is also linked to Henry Hub, sure from the French government as the feed-
but the gas will be delivered on an ex-ship basis. stock for US LNG is shale gas, which is produced
NextDecade expects to take a final investment using hydraulic fracturing. France banned frack-
decision (FID) on the first three trains at the five- ing in 2011 and had appeared to be keen to apply
train 27mn tpy Rio Grande project in the second similar standards to imported energy.
half of this year, and greenlight the development
Week 27 08•July•2022 www. NEWSBASE .com P11
