NextDecade LLC – an LNG development and management company – has announced that it has signed Heads of Agreements (HOAs) for the sale and purchase of 14 million tpy of LNG. The contracts were signed with customers from Asia and Europe. NextDecade now aims to convert these HOAs into official sales and purchase/tolling agreements.
Recently, NextDecade has found success in the development of the Rio Grande LNG export project and the approximately 140 mile long Rio Bravo Pipeline system, which will provide feed gas to the facility in Brownsville, Texas, US. Once operating at full capacity, the Rio Grande LNG project will be capable of exporting up to 27 million tpy of LNG. Initial production is expected to begin in 2020, and produce approximately 9 million tpy of LNG. A final investment decision (FID) will be made by NextDecade in 2017.
Kathleen Eisbrenner, the CEO of NextDecade, said: “These agreements are paving the way forward for NextDecade’s US-based LNG export projects, Rio Grande LNG and Pelican Island LNG.
“Despite challenging overall market dynamics, our experience in the marketplace and the conversations that NextDecade has been having with potential LNG buyers tell a very different story. The global market for US-produced LNG is robust. We are attracting a growing number of potential future NextDecade customers. These agreements support our position and strengthen the viability of our projects, both in Brownsville and around the world.”
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/05112015/nextdecade-signs-hoas-for-14-million-tpy-of-lng-1584/