NextDecade Signs HOAs for 14 Mtpa of LNG for Rio Grande LNG Facility

abarrelfullabarrelfull wrote on 09 Nov 2015 13:28

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NextDecade LLC, a development and management company of liquefied natural gas (LNG) projects that provides customers access to the full LNG value chain, announced today that it has signed Heads of Agreements (HOAs) totaling 14 Million tons per annum (Mtpa) for the sale and purchase of LNG. These contracts include customers from across Asia and Europe. Moving forward, NextDecade will focus on converting these HOAs to fully-termed sales and purchase/tolling agreements per standard industry practice.

NextDecade’s recent commercial success lays the groundwork to advance its major export projects, including Rio Grande LNG and the roughly 140-mile Rio Bravo Pipeline system that will provide feed gas to the facility in Brownsville, Texas. At full capacity, Rio Grande LNG will be able to liquefy and export up to 27 Mtpa of LNG with initial production of 9 Mtpa expected to begin in 2020. NextDecade expects to make a final investment decision (FID) on the project in early-2017.

“These agreements are paving the way forward for NextDecade’s US-based LNG export projects, Rio Grande LNG and Pelican Island LNG,” said NextDecade CEO Kathleen Eisbrenner. “Despite challenging overall market dynamics, our experience in the marketplace and the conversations that NextDecade has been having with potential LNG buyers tell a very different story. The global market for US-produced LNG is robust. We are attracting a growing number of potential future NextDecade customers. These agreements support our position and strengthen the viability of our projects, both in Brownsville and around the world.”

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