NextDecade Corporation has announced that TotalEnergies has exercised its option to purchase liquefied natural gas from Train 4 at the Rio Grande LNG Facility. As part of this development, subsidiaries of both companies have entered into a long-term sale and purchase agreement for LNG offtake from the train.
Under the terms of the agreement, TotalEnergies Gas & Power North America, Inc. will purchase 1.5 million tonnes per annum of LNG over a 20-year period. The LNG will be supplied on a free-on-board basis at a price indexed to Henry Hub, contingent upon a positive Final Investment Decision on Train 4.
Matt Schatzman, chairman and chief executive officer of NextDecade, expressed appreciation for the continued partnership, stating:
“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. 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.”
With this latest agreement, NextDecade has now contracted a total of 4.6 MTPA of LNG from Train 4 on a long-term basis. The company believes the existing commercial commitments provide sufficient support to reach a positive FID for the project.
The final investment decision on Train 4 will depend on securing adequate financing for the train and associated infrastructure, along with other customary conditions.
For more information visit www.investors.next-decade.com
