NextDecade, Flex LNG join forces on FSRU business

US LNG export player NextDecade signed a heads of agreement with John Fredriksen-controlled Flex LNG to develop solutions for companies looking to buy the chilled fuel at the Rio Grande LNG project in Texas.

According to a joint statement, NextDecade Global Solutions, a unit of NextDecade, and Flex LNG plan to develop an FSRU and dockside solutions for NextDecade’s customers, with the LNG supply also provided by the Texas-based company.

The deal stipulates the terms for the long-term charter of Flex LNG FSRUs, connecting customers with a need for regasification import solutions to NextDecade’s Rio Grande LNG export project.

With the cooperation, NextDecade’s head Kathleen Eisbrenner and Jonathan Cook, who will become Flex LNG’s CEO early next year, will reunite following their cooperation at Excelerate Energy that Eisbrenner founded with Cook operating as a CEO. US floating LNG player Excelerate Energy brought the first FSRU to the market.

Flex LNG is actively developing FSRU solutions which include new-build vessels as well as conversions of existing LNG carriers. The agreement with NextDecade will enable the companies to jointly develop and deliver import solutions.

The statement notes that with the emergence of FSRU’s the number of countries capable of importing LNG has more than tripled, with much of this growth directly attributable to the FSRU technology.