NextDecade Corp has announced a second sale and purchase agreement (SPA) with a Chinese energy company in recent weeks.
Under the latest SPA, Guangdong Energy Group will purchase around 1 mill tonnes per annum of LNG indexed to Henry Hub and delivered on an ex-ship (DES) basis for 20 years.
The LNG will be supplied from Rio Grande LNG Train 1, which is expected to start commercial operations in 2026. Guangdong also has the right to purchase an additional 0.5 mill tonnes from RGLNG under the SPA.
“We are pleased to announce this SPA with Guangdong Energy, one of the largest power generation companies in Guangdong Province in Southeastern China,” said Matt Schatzman, NextDecade Chairman and CEO. “RGLNG’s differentiated offering of a lower carbon-intensive LNG continues to drive our commercial momentum and we look forward to working with Guangdong Energy over the coming years to help further reduce their greenhouse gas emissions.”
“The signing of the SPA represents a long-term and deep relationship between Guangdong Energy Group and NextDecade,” said Liu Bo, Deputy General Manager of Guangdong Energy Group. “We will make full use of our respective advantages to strengthen the relationship between our companies. Thus, benefiting and contributing to building a safe, clean, low-carbon, and modern energy system, a system that will help grow the Guangdong economy and foster sustainable development.”
Based on current expected demand for LNG and assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive final investment decision (FID) on up to three trains of the Rio Grande export project in the second half of this year, with FIDs of its remaining trains to follow.
