NextDecade pens Rio Grande LNG HOAs
- Project & Tenders
Texas-based NextDecade informed on Thursday it has signed several contracts to sell LNG from its proposed Rio Grande LNG facility.
The heads of agreements totaling 14 mtpa of LNG were signed with customers from across Asia and Europe, the company said in a statement.
“NextDecade’s future efforts will focus on converting these HOAs to fully-termed sales and purchase/tolling agreements,” it added.
According to NextDecade, these deals lay the groundwork to advance export projects, including Rio Grande LNG and the roughly 140-mile Rio Bravo Pipeline system that will provide feed gas to the facility in Brownsville, Texas.
At full capacity, Rio Grande LNG will be able to liquefy and export up to 27 mtpa of LNG with initial production of 9 mtpa expected to begin in 2020.
NextDecade expects to make a final investment decision on the project in early-2017.
“These agreements are paving the way forward for NextDecade’s US-based LNG export projects, Rio Grande LNG and Pelican Island LNG,” said NextDecade CEO Kathleen Eisbrenner.
Eisbrenner added that despite challenging overall market dynamics, the global market for US-produced liquefied natural gas is robust.
LNG World News Staff; Image: NextDecade