NextDecade Corporation (NextDecade) announced the execution of a 15-year sale and purchase agreement (“SPA”) with ENGIE S.A. (ENGIE) for the supply of liquefied natural gas (“LNG”) from NextDecade’s Rio Grande LNG export project (“RGLNG”) in Brownsville, Texas.
Under the SPA, ENGIE will purchase 1.75 million metric tonnes per annum (“MTPA”) of LNG on a free-on-board (“FOB”) basis. The LNG supply will be from the first two trains of Rio Grande LNG, with the first train expected to start commercial operations as early as 2026.
NextDecade aims to reduce CO2 emissions from RGLNG by more than 90 percent via carbon capture and storage. Combined with responsibly sourced gas and the use of net-zero electricity, NextDecade intends to produce a lower carbon-intensive LNG for its customers.
“We are pleased to announce this SPA with ENGIE, a significant European energy supplier and leader in the global transition toward lower carbon energy solutions,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “The signing of this SPA is an important step in showing our commitment in the areas of environmental stewardship, social responsibility, and governance best practices, while upholding the LNG industry’s highest standards. It also shows how we can help meet our buyers' climate change initiatives, while providing them access to secure energy supply.”
Assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive final investment decision (“FID”) on a minimum of two trains of the Rio Grande LNG export project in the second half of 2022, with FIDs of its remaining three trains to follow thereafter.
About NextDecade Corporation
NextDecade Corporation (NASDAQ: NEXT) is an energy company accelerating the path to a net-zero future. Leading innovation in more sustainable LNG and carbon capture solutions, NextDecade is committed to providing the world access to cleaner energy. Through our wholly owned subsidiaries Rio Grande LNG and NEXT Carbon Solutions, we are developing a 27 MTPA LNG export facility in South Texas along with one of the largest carbon capture and storage projects in North America. We are 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. NextDecade’s common stock is listed on the Nasdaq Stock Market under the symbol “NEXT.” NextDecade is headquartered in Houston, Texas.
About ENGIE
Our group is a global reference in low-carbon energy and services. Together with our 170,000 employees, our customers, partners and stakeholders, we are committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by our purpose (“raison d’être”), we reconcile economic performance with a positive impact on people and the planet, building on our key businesses (gas, renewable energy, services) to offer competitive solutions to our customers.
Turnover in 2021: 57.9 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Eurotop 100, MSCI Europe) and nonfinancial indices (DJSI World, DJSI Europe, Euronext Vigeo Eiris - Eurozone 120/ Europe 120/ France 20, MSCI EMU ESG, MSCI Europe ESG, Euro Stoxx 50 ESG, Stoxx Europe 600 ESG, and Stoxx Global 1800 ESG).