LNG

NextDecade, developer of the Rio Grande export project in Texas and listed on the Nasdaq global stock exchange, has missed its deadline to file first-quarter earnings and is expected to further delay its final investment decision.

NextDecade Corp., the developer of the Rio Grande LNG export project at the port of Brownsville in Texas, announced at the LNG2019 conference in Shanghai that it had signed a 20-year sale and purchase agreement with Royal Dutch Shell.

Shell will purchase LNG on a free-on-board basis whereby it provides its own shipping starting from the commercial operation date of Rio Grande LNG, currently expected in 2023.

The US company announced the key event at its exhibition stand at the LNG19 conference in the Chinese city backed by the International Gas Union (IGU) and Gas Technology Institute.

NextDecade said that around three-quarters of the purchased LNG volumes will be indexed to the North Sea Brent crude price and the remaining volumes indexed to US natural gas prices, including the benchmark Henry Hub.

“The SPA is the first-ever long-term contract with LNG produced out of the United States to be indexed to Brent and comes with full destination flexibility,” stated NextDecade.

“We are thrilled that we continue to achieve our milestones, as promised, and look forward to finalizing additional commercial agreements and to proceeding with the development of our Rio Grande LNG project,” added the company.

Matt Schatzman, NextDecade’s President and Chief Executive and a former executive with BG Group of the UK, said he was honoured to have Shell as the first foundation customer.

“Shell is not only the largest portfolio LNG company in the world, Shell is also a recognized pioneer in the global LNG business,” explained Schatzman.

“Shell was the first to sign a long-term SPA from the United States indexed to Henry Hub in 2011, and so it is fitting they are the first to sign a long-term SPA from a US LNG project indexed to Brent,” added Matt Schatzman.

Shell also welcomes the deal with Slavko Preocanin, Vice President of Shell LNG Marketing & Trading saying the deal secured more volumes for the Anglo-Dutch company for the 2020s.

“It ensures we can meet the growing demand for secure, flexible and cleaner energy from our global customers,” added Preocanin.

“We look forward to working with NextDecade in the years to come,” he added.

NextDecade said it anticipated making a positive final investment decision by the third quarter of 2019 on up to three LNG Trains in its first phase of development.

The Brownsville plant will produce around 27 MTPA of LNG and the company’s affiliated Rio Bravo Pipeline in South Texas is also being approved.

NextDecade has a second Texan export venture called Galveston Bay LNG.

Galveston Bay LNG will include a 97-mile affiliated pipeline to move 3 billion cubic feet of natural gas per day from the Katy Hub in Waller County, while the liquefaction plant is proposed for a 550-acre site along the Texas City Ship Channel.

Dec 13 (LNGJ) - NextDecade Corp., the developer of the Rio Grande LNG export plant proposed for near the port of Brownsville, said the Texas Commission on Environmental Quality voted to issue a series of air permits to the venture with plans to produce 27 million tonnes per annum of LNG. “We appreciate the TCEQ’s commitment to the review of our project to deliver a safe and reliable LNG facility,” said Matt Schatzman, NextDecade’s President and Chief Executive. “We look forward to bringing thousands of jobs to the Rio Grande Valley and communities throughout the State of Texas, and to facilitating access to clean-burning, US-produced natural gas for our customers around the world,” added Schatzman. The US Federal Energy Regulatory Commission plans to issue a final Environmental Impact Statement for Rio Grande LNG by the end of April 2019. NextDecade anticipates making a final investment decision in the third quarter of 2019.

The Port of Brownsville in Texas said it was looking forward to hosting the Rio Grande LNG export plant, to be located in the Port area, and outlined its progress and benefits.

Galveston Bay LNG, a project planned on the Gulf Coast by Houston-based company NextDecade, has requested the start-up of its authorization process by the Federal Energy Regulatory Commission to produce an initial 16.5 million tonnes of LNG from a proposed liquefaction facility near Texas City.

NextDecade Corp., developer of the Rio Grande LNG project in Texas and other ventures, has agreed to sell convertible preferred stock to funds managed by US equity firm BlackRock after earlier in August selling $50 million of stock to other funds.

NextDecade Corp., the US LNG portfolio company and developer of the Rio Grande LNG export plant in Texas, said Chief Executive Kathleen Eisbrenner was handing over executive leadership to former BG Group executive Matthew K. Schatzman while she would become Chairman.