NextDecade Corporation (NextDecade) announced the execution of a 20-year sale and purchase agreement (“SPA”) with ENN LNG (Singapore) Pte Ltd (“ENN LNG”), a wholly-owned subsidiary of ENN Natural Gas Co., Ltd. (ENN) for the supply of liquefied natural gas (“LNG”) from NextDecade’s Rio Grande LNG export project (“RGLNG”) in Brownsville, Texas.
Under the SPA, ENN LNG will purchase 1.5 million metric tonnes per annum (MTPA) of LNG indexed to Henry Hub on a free-on-board basis. The LNG supply will be from the first two trains at RGLNG with the first train expected to start commercial operations as early as 2026.
“We are pleased to announce this long-term LNG SPA with ENN, a premier Chinese energy company. As one of China’s largest private companies, ENN is a major participant in China’s energy market, and we look forward to a successful, long-term relationship with ENN,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “This SPA underscores the strength of NextDecade’s differentiated offering. The commercial momentum at RGLNG is accelerating and we believe the company is well placed to benefit from the strengthening LNG market.”
Zheng Hongtao, President of ENN Natural Gas Co., Ltd said, “This agreement secures additional volume for our LNG portfolio and helps ensure we can meet the growing demand for secure, flexible, and cleaner energy for our customers in the future. The signing of this SPA reflects ENN’s goal of promoting the global energy transition and is of significance given RGLNG’s low GHG emissions profile relative to other LNG supply sources. We look forward to working with NextDecade in the years to come.”
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. For more information, please visit www.next-decade.com.
About ENN Natural Gas
As one of the largest private energy companies in China, ENN Natural Gas Co., Ltd. (Stock code 600803.SH) operates over 250 city gas projects nationwide, has annual LNG distribution capacity over 10 bcm, and runs the first large-scale private LNG terminal in China -- Zhoushan LNG Terminal. Its business layout covers the entire natural gas value chain, including distribution, trading, storage and transportation, production, and engineering. Relying on industry best practice, ENN Natural Gas Co., Ltd. has built an intelligent operation platform for the natural gas industry – GreatGas.cn. It accelerates the aggregation of demand, resources, reserves, and delivery ecology of the natural gas industry, innovates and develops digital intelligence services, and promotes the digital intelligence upgrade of the natural gas industry. In 2021, ENN Natural Gas Co., Ltd.’s total natural gas sales volume was 37.2 bcm, accounting for approximately 10% of China’s total natural gas consumption.