NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has signed a long-term sale and purchase agreement with Galp Trading S.A. of Portugal.
NextDecade, based in Houston, said that under the 20-year deal Galp would purchase 1.0 million tonnes per annum of LNG indexed to the US benchmark Henry Hub gas price on a free-on-board (FOB) basis whereby the Portuguese supply their own ships.
“We are honored to have Galp, one of Portugal’s largest energy companies and a key player in the Iberian Peninsula, as our customer,” said Matt Schatzman, NextDecade's Chairman and Chief Executive.
“We look forward to helping Galp, as well as other European companies and their customers, meet their energy needs by offering a lower-cost, reliable source of LNG with lower carbon-intensity,” added Schatzman.
FID moves
NextDecade explained that it was targeting a positive final investment decision on the first three Trains of the Rio Grande project for the first quarter of 2023.
Further FIDs on the other permitted liquefaction Trains would follow thereafter for the venture with proposed 27 MTPA of output.
NextDecade has made progress with other SPAs during 2022, including one with ExxonMobil Corp.
The US major signed a 20-year supply deal with NextDecade at the end of July 2022 through its trading subsidiary in Asia.
Under that SPA, the US major’s Asia unit would purchase 1 MTPA of LNG supplied from the first two Trains of the Rio Grande facility.
The first Train is expected to start commercial operations as early as 2026.
NextDecade has also signed three supply agreement with Chinese companies, including a 20-year deal with China Gas Hongda Energy Trading Co., a wholly-owned subsidiary of China Gas Holdings.
That deal was also for 1 MTPA of LNG indexed to Henry Hub and delivered on a FOB basis.
NextDecade in April 2022 signed a 20-year SPA with the Singapore trading arm of ENN Group of China and another with China’s Guangdong Energy Group Natural Gas.
