EQT Corporation announced that it has secured 1.5 million tonnes per annum (MTPA) of liquefaction capacity under a 20-year Sale and Purchase Agreement (SPA) with NextDecade Corporation (NextDecade) at Train 5 of the Rio Grande LNG export facility in Texas.
The agreement will be on a free-on-board basis at a price indexed to Henry Hub, subject to NextDecade making a positive final investment decision (FID) on Train 5.
Toby Z. Rice, EQT President and Chief Executive Officer, commented:
"The execution of this agreement represents continued momentum of EQT's LNG strategy, which is focused on further diversifying the company's end-market exposure into the rapidly growing global gas markets and accelerating long-term earnings growth. Consistent with our existing LNG deals, EQT will market and optimize its own cargos, providing structuring flexibility and downside protection.
Our growing LNG exposure, combined with the unique attributes that have made EQT the supplier of choice for end users of natural gas domestically – our low-cost structure, unmatched scale and resource depth, investment grade balance sheet, and peer-leading emissions profile – positions the company to expand its market reach and become the supplier of choice for end users of natural gas worldwide. We believe the rapidly growing international market will increasingly covet EQT's gas supply to advance economic growth, while replicating America's leading emission reduction progress through the replacement of coal with clean-burning natural gas."
Matt Schatzman, NextDecade Chairman and Chief Executive Officer, added:
"We are pleased to have EQT, one of the largest producers of natural gas in the United States, as a customer of Rio Grande LNG Train 5. Liquefied natural gas exported from the United States will continue to play a critical role in enhancing the energy security of our allies around the world."
