NextDecade Corp. will supply LNG to Chinese power generation company Guangdong Energy Group for 20 years under a deal announced on July 6.
The agreement is the latest in a series of long-term contracts for U.S. LNG after major producer Russia’s invasion of Ukraine sparked sanctions that squeezed an already-tight global supply.
NextDecade said it would supply one million tonnes per annum (mtpa) of gas to Guangdong Energy from the first train of its Rio Grande LNG export project in Brownsville, Texas, which is expected to start commercial operations as early as 2026.
Guangdong Energy also has the right to buy an additional 0.5 mtpa of LNG.
The agreement marks NextDecade’s fourth LNG supply deal this year, three of which have been with Chinese customers. The Houston-based company said on July 5 it would supply LNG to a unit of China Gas Holdings and in April, it announced a deal with China’s ENN.
NextDecade also signed a supply deal with France’s Engie in May.
The company expects to make final investment decisions (FID) on up to three trains of the Rio Grande LNG export project in the second half of this year, with FIDs on its remaining trains to come after that.
Recommended Reading
Chart Talk: Chesapeake CEO Says Eagle Ford Assets Didn’t Fit Portfolio
2023-02-06 - At the 2023 NAPE summit, Chesapeake Energy CEO Nick Dell’Osso explained the reasoning behind the company’s Eagle Ford asset divestiture.
Marketed: GP Howard Updated Permian Basin Non-Operated Properties
2023-01-10 - GP Howard LLC has retained RedOaks Energy Advisors as the exclusive advisor in connection with the sale of non-operated working interest properties located in Howard County, Texas, including six new wells drilled and two new wells that began production.
IPC Announces Acquisition of Canada’s Cor4 Oil Corp.
2023-02-07 - International Petroleum Corp.’s acquisition of Cor4 Oil Corp. is based on an asset consideration of CA$84 million and are complementary to IPC’s existing assets in Canada.
Marketed: SCOOP/STACK Non-Op Production Package
2022-12-13 - An undisclosed seller retained Meagher Energy Advisors for the sale of non-operated production, leasehold and minerals assets spanning three Oklahoma counties in the STACK/SCOOP play.
Marketed: TRP Minerals LLC 11 Well Package
2022-12-07 - TRP Minerals LLC retained EnergyNet for the sale of an 11-well package in North Dakota's Dunn County.