NextDecade announces SPA with Guangdong Energy Group
Published by Abi Larkin,
Editorial Assistant
LNG Industry,
NextDecade Corporation has announced the execution of a 20-year Sales and Purchase Agreement (SPA) with Guangdong Energy Group for the supply of LNG from NextDecade’s Rio Grande LNG export project (RGLNG) in Brownsville, Texas, US. The SPA was completed pursuant to the binding Heads of Agreement (HoA) previously announced on 24 March 2022.
Under the SPA, Guangdong Energy Group will purchase approximately 1.0 million tpy of LNG indexed to Henry Hub and delivered on an ex-ship (DES) basis. The LNG will be supplied from Rio Grande LNG train 1, which is expected to start commercial operations as early as 2026. Guangdong Energy Group has the right to purchase an additional 0.5 million tpy of LNG from RGLNG.
“We are pleased to announce this SPA with Guangdong Energy, one of the largest power generation companies in Guangdong Province in Southeastern China,” said Matt Schatzman, NextDecade Chairman and Chief Executive Officer. “RGLNG’s differentiated offering of a lower carbon-intensive LNG continues to drive our commercial momentum, and we look forward to working with Guangdong Energy over the coming years to help further reduce their greenhouse gas (GHG) emissions.”
“The signing of the SPA represents a long-term and deep relationship between Guangdong Energy Group and NextDecade,” said Mr. Liu Bo, Deputy General Manager of Guangdong Energy Group. “We will make full use of our respective advantages to strengthen the relationship between our companies. Thus, benefiting and contributing to building a safe, clean, low-carbon, and modern energy system, a system that will help grow the Guangdong economy and foster sustainable development.”
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.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11072022/nextdecade-announces-spa-with-guangdong-energy-group/
You might also like
Stabilis Solutions announces extension of LNG fuel contract
Stabilis Solutions, Inc. has announced the extension of its LNG supply agreement with a leading global provider of on-demand industrial power solutions.