Several US LNG SPAs signed

Thursday, 12 May 2022
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NextDecade Corp, Energy Transfer LNG (ET) and Venture Global have all recently signed sale and purchase agreements (SPAs) with leading energy providers.

Next Decade has signed a 15-year SPA with Engie for LNG supply from the Rio Grande LNG (RGLNG) export project at Brownsville, Texas.

Under the SPA, Engie will purchase 1.75 mill tonnes per annum of LNG on a free-on-board (FOB) basis.

The LNG will be supplied from Rio Grande LNG’s first two trains. The first train is expected to start commercial operations in 2026.

NextDecade said that it aimed to reduce CO2 emissions from RGLNG by more than 90% via carbon capture and storage, combined with responsibly sourced gas and the use of net-zero electricity.

Assuming the achievement of further LNG contracting and financing, NextDecade anticipated making a positive final investment decision (FID) on a minimum of two trains at the RGLNG export project in the second half of this year, with FIDs on its remaining three trains to follow.

In addition, at the beginning of this month, Energy Transfer LNG (ET) secured two more long term SPAs.

The first SPA calls for the supply of LNG to Gunvor Singapore from its Lake Charles LNG export facility under a 20-year agreement.

Under the SPA, ET will supply 2 mill tonnes of LNG per annum to Gunvor on a free-on-board (FOB) basis from Lake Charles.

The purchase price will be indexed to the Henry Hub benchmark plus a fixed liquefaction charge. First deliveries are expected to commence in 2026.

ET also executed a long-term SPA with SK Gas Trading for the supply of 0.4 mill tonnes per annum of LNG from Lake Charles.

LNG will be supplied on a free-on-board (FOB) basis.

The purchase price will also be indexed to the Henry Hub benchmark, plus a fixed liquefaction charge.

The second SPA is for a term of 18 years and the first deliveries are expected to commence in 2026.

This is ET’s fourth SPA announced in the last four weeks, bringing the total amount of LNG contracted from its Lake Charles LNG export facility to 5.1 mill tonnes per annum.

Both SPAs will become fully effective upon the satisfaction of the conditions precedent, including ET taking a final investment decision (FID) on the project.

ET’s Lake Charles LNG export facility will be constructed on an existing brownfield regasification facility and will make use of four existing LNG storage tanks, two deep water berths and other LNG infrastructure.

It will also benefit from its direct connection to ET’s existing trunkline pipeline system.

Finally, earlier this week, Venture Global LNG announced the signing of two long-term SPAs with ExxonMobil LNG Asia Pacific (EMLAP).

These SPAs call for the sale of 2 mill tonnes per annum of LNG - 1 mill tonnes from Plaquemines LNG and 1 mill tonnes from the CP2 LNG facility.

This marks the second supply agreement for CP2, which is expected to commence construction in 2023.

Both facilities will utilise the same innovative modular design undertaken at Calcasieu Pass, where speed of execution resulted in the production of first LNG only 29 months after FID. 

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