NextDecade Corporation and TotalEnergies have joined together in a sale and purchase agreement (SPA) for LNG offtake from Train 4 at the Rio Grande LNG Facility, Texas, USA.
Under the terms of the SPA, TotalEnergies Gas & Power North America, Inc. will purchase 1.5 million tonnes per annum (MTPA) of LNG for 20 years on a free-on-board basis at a price indexed to Henry Hub, subject to a positive Final Investment Decision (FID) on Train 4.
‘TotalEnergies has been a key contributor to the success of Rio Grande LNG Phase 1, and we are pleased to be expanding our strategic partnership with TotalEnergies with the execution of this Train 4 SPA,’ says Matt Schatzman, NextDecade’s chairman and CEO. ‘This SPA completes the commercial support we need for Rio Grande LNG Train 4, and we are now focused on progressing Train 4 toward a positive FID.’
NextDecade has contracted a total of 4.6 MTPA of LNG from Train 4 on a long-term basis and expects existing long-term commercial agreements to be sufficient to support a positive FID on Train 4. Achieving a positive FID on Train 4 will be subject to, among other things, obtaining adequate financing to construct Train 4 and related infrastructure.
