NextDecade has signed a 20-year sale and purchase agreement with ExxonMobil for the supply of liquefied natural gas from NextDecade’s Rio Grande LNG export project in Brownsville, Texas.
NextDecade signed the deal with ExxonMobil affiliate ExxonMobil LNG Asia Pacific. Under the SPA, ExxonMobil will purchase 1.0 million metric tons per annum (mtpa) of LNG.
The LNG will be supplied from the first two trains of Rio Grande LNG, 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 RGLNG and signifies the beginning of a mutually beneficial relationship,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer.
“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,” he added.
Based on the current expected demand for LNG and assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive final investment decision 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,” said Peter Clarke, Senior Vice President of LNG for the ExxonMobil Upstream Company. “We look forward to working with NextDecade to continue growing ExxonMobil’s LNG portfolio and delivering the lower-emissions energy the world needs.”
NextDecade is developing a 27 mtpa LNG export facility in South Texas along with one of the largest carbon capture and storage projects in North America. It is also working with third-party customers around the world to deploy our proprietary processes to lower the cost of carbon capture and storage and reduce CO2 emissions at their industrial-scale facilities.
Source: Rigzone.com
