NextDecade to supply LNG to China Gas
U.S. liquefied natural gas (LNG) developer NextDecade Corp said on Tuesday it will supply 1 million metric tonnes of gas per annum to China Gas Holdings’ unit from its Rio Grande LNG export project in Brownsville, Texas.
It is the latest agreement in a string of new long-term LNG contracts in the sector that picked up pace this year as sanctions on Russian fuel choked an already undersupplied market, raising energy security concerns amid soaring global demand for the gas.
In May, NextDecade signed a 15-year supply agreement with French energy group Engie SA for 1.75 mtpa of LNG.
The new supply deal with China Gas, the financial terms of which have not been disclosed yet, is for 20 years and LNG will be delivered from the second train at Rio Grande LNG that is expected to start commercial operations as early as 2027, NextDecade said in a statement.
The company said it expects to make final investment decisions (FID) 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.
Source: Reuters (Reporting by Rithika Krishna in Bengaluru; Editing by Shinjini Ganguli)