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NextDecade announces SPA with China Gas

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LNG Industry,

NextDecade Corporation (NextDecade) has announced the execution of a 20-year Sales and Purchase Agreement (SPA) with China Gas Hongda Energy Trading Co., Ltd (China Gas), a wholly-owned subsidiary of China Gas Holdings Limited for the supply of LNG from NextDecade’s Rio Grande LNG (RGLNG) export project in Brownsville, Texas, US.

Under the SPA, China Gas will purchase 1.0 million tpy of LNG indexed to Henry Hub and delivered on an FOB basis. The LNG will be supplied from the second train at RGLNG, which is expected to start commercial operations as early as 2027.

“We are pleased to announce the signing of this long-term SPA with China Gas, one of China’s largest natural gas distribution companies supplying approximately 43 million households across China,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “This SPA demonstrates the continued acceleration of RGLNG’s commercial momentum and highlights our successful strategy of offering customers flexible, competitive, and low carbon-intensive LNG.”

“The signing of this long-term SPA with NextDecade will further optimise China Gas’ portfolio, expand resource supply channels, and ensure that we can meet our customers’ growing demand for quality, reliable, and low carbon content energy. This SPA demonstrates China Gas’ determination to unswervingly implement China’s national low-carbon energy development strategy,” said Yalong Qi, General Manager of China Gas Hongda Energy Trading Co., Ltd.”

Based on current expected demand for LNG and assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive Final Investment Decision (FID) on up to three trains of the RGLNG export project in 2H22, with FIDs of its remaining trains to follow thereafter.

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