NextDecade and ExxonMobil sign 1.0 mtpa LNG deal
U.S. LNG project developer NextDecade has signed a 20-year sale and purchase agreement (SPA) with compatriot energy major ExxonMobil for the supply of LNG from NextDecade’s Rio Grande LNG export project in Texas.
On 27 July, NextDecade announced the execution of a 20-year SPA with ExxonMobil LNG Asia Pacific (EMLAP), an ExxonMobil affiliate. The deal specifically ensures the supply of LNG from the Rio Grande LNG export project (RGLNG) in Brownsville, Texas.
Under the SPA, EMLAP will buy one million metric tonnes per annum (mtpa) of LNG. The LNG will come from the first two trains of Rio Grande LNG. The first train is to start commercial operations as early as 2026.
“The signing of this long-term SPA with ExxonMobil represents another significant milestone for RGLNG and signifies the beginning of a mutually beneficial relationship,” said Matt Schatzman, NextDecade’s CEO.
“LNG will play an increasingly important role in helping society reduce emissions during the energy transition,” said Peter Clarke, senior vice president of LNG for the ExxonMobil Upstream Company.
NextDecade anticipates making a positive final investment decision (FID) on up to three trains of the Rio Grande LNG export project in the second half of 2022. In addition, FIDs of its remaining trains are to follow thereafter.