LNG

NextDecade Corp., the company developing the Rio Grande LNG export plant on the north shore of the Brownsville Ship Channel in South Texas, has given an update on strategic activities through the early second quarter of 2024.

NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has signed a volume increase of the sales and purchase agreement (SPA) with ENN LNG of Singapore, a trading unit of the Chinese ENN Natural Gas Group.

NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has signed a 15-year sale and purchase agreement with French utility Engie as the need for LNG supplies in Europe becomes more urgent.

March 24 (LNGJ) - NextDecade Corp., the developer of the of Rio Grande LNG project along the Brownsville Ship Channel, has executed a binding Heads of Agreement with China’s Guangdong Energy Group Natural Gas Co., for the supply of LNG cargoes for a 20-year term. The Rio Grande project has ultimate plans and permits to produce up to 27 million tonnes per annum of LNG from five liquefaction Trains.

   The accord proposes Guangdong Energy will purchase up to 1.5 MTPA of LNG indexed to US benchmark Henry Hub natural gas price. The LNG supply will initially be from Train one of Rio Grande LNG, which is expected to start commercial operations in 2026. “We are honored to have Guangdong Energy as the second foundation customer of our Rio Grande LNG project and our first Chinese customer,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive.

NextDecade Corp., the owner of the Rio Grande LNG export project near the port of Brownsville in Texas, said it had developed proprietary processes using proven technology to reduce carbon-dioxide emissions at the facility.

The Brownsville Ship Channel is making progress in its development as one of the major liquefied natural gas export waterways with the owner of the Rio Grande LNG project financing a key improvement plan set to start in 2020 and using some design features from the expanded Panama Canal.

NextDecade Corp. said it received bid packages from US companies Bechtel Inc. and Fluor Corp. relating to the engineering, procurement and construction contracts for its Rio Grande export project in Texas.

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.

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.