NextDecade Corp. announced an agreement with ExxonMobil LNG Asia Pacific to supply liquefied natural gas from NextDecade’s Rio Grande LNG export project in Brownsville, Texas.
The 20-year sale and purchase agreement (SPA) will allow for the purchase of 1.0 million metric tonnes per annum (MPTA) of LNG, according to NextDecade. The LNG will be supplied from the company's first two liquefaction trains at Rio Grande, with the first train expected to start commercial operations as early as 2026.
“The signing of this long-term SPA with ExxonMobil, a global leader in the energy industry, represents another significant milestone for Rio Grande LNG and signifies the beginning of a mutually beneficial relationship,” NextDecade chairman and CEO Matt Schatzman said. “This agreement highlights the success of NextDecade’s strategy to provide customers with low carbon-intensive LNG to help them meet their carbon reduction goals, while providing them access to secure energy supply.”
NextDecade said it expects to make a positive final investment decision (FID) on up to three trains of the Rio Grande LNG export project in the second half of 2022, with FIDs of its remaining trains to follow thereafter.
“LNG will play an increasingly important role in helping society reduce emissions during the energy transition,” senior vice president of LNG for the ExxonMobil Upstream Company Peter Clarke said. “We look forward to working with NextDecade to continue growing ExxonMobil’s LNG portfolio and delivering the lower-emissions energy the world needs.”
According to a company statement, NextDecade's Rio Grande LNG project is expected to produce 27 million metric tonnes of LNG at full capacity.
