NextDecade has executed a binding Heads of Agreement (HOA) with Guangdong Energy, a Chinese regional utility, for the long-term supply of LNG from NextDecade’s Rio Grande LNG export project in Brownsville, Texas (United States). The HOA provides that Guangdong Energy will purchase up to 1.5 Mt/year of LNG indexed to Henry Hub for 20 years. The LNG supply will initially be from train 1 of Rio Grande LNG, which is expected to start commercial operations in 2026. The HOA also provides that Guangdong Energy and NextDecade will complete the sale and purchase agreement (SPA) by mid-2022.
NextDecade is developing the 27 Mt/year Rio Grande LNG export terminal in the Port of Brownsville. The project will include 5 trains each capable of producing 5.4 Mt/year of LNG. A final investment decision (FID), which has been delayed several times, is now expected in the second half of 2022.
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