NextDecade continues to add customers for the proposed fourth and fifth trains at its Rio Grande LNG facility in Brownsville, Texas. (Source: Shutterstock)
NextDecade (NEXT) signed a 20-year LNG sale agreement with JERA, Japan’s largest power generator, for offtake from Train 5 of its Rio Grande LNG project in South Texas.
The LNG producer is working towards a final investment decision (FID) on the fourth and fifth trains for the second phase of its project in Brownsville. The facility’s Phase 1, consisting of three trains, is under construction with an expected 2027 in-service date.
The company announced the agreement with JERA on May 29. Under its terms, JERA will purchase 2 million tonnes per year (mtpa) of LNG on a free-on-board basis, with pricing indexed to the Henry Hub. The deal is contingent on an FID for Train 5.
“We have seen strong commercial momentum this year for Rio Grande LNG, which is helping us commercialize Train 5 toward a positive FID,” said Matt Schatzman, NextDecade’s chairman and CEO in the announcement.
In April, NextDecade signed a 20-year, 4.6-mtpa supply deal with TotalEnergies for LNG from the facility’s Train 4.
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