NextDecade has announced that it has executed a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with JERA for offtake from Train 5 at the Rio Grande LNG Facility at the Port of Brownsville, Texas, USA.
Under the terms of the SPA, JERA will purchase 2.0 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 5.
Matt Schatzman, NextDecade’s chairman and CEO says: ‘We are pleased to announce JERA, the largest power generator in Japan and a long-established LNG market leader, as a customer for Rio Grande LNG Train 5. We have seen strong commercial momentum this year for Rio Grande LNG, which is helping us commercialise Train 5 toward a positive FID.’
Achieving a positive FID on Train 5 will be subject to, among other things, entering into appropriate commercial arrangements, entering into an engineering, procurement, and construction agreement, and obtaining adequate financing to construct Train 5 and related infrastructure.
