SINGAPORE—U.S. company NextDecade Corp. (NASDAQ: NEXT) is offering Brent-linked supply of LNG as one of several pricing options to potential buyers and is the first U.S.-based project to do so, a senior company official said on March 7.
The Houston-based company is offering multiple LNG pricing options including Brent indexation from its Rio Grande LNG project with full destination flexibility, said Matthew Schatzman, president and CEO of NextDecade.
“We also offer Henry Hub indexation and alternative U.S. index options ... We are also exploring TTF and JKM netback pricing of producers,” he said at the LNGA 2019 conference held in Singapore.
Many LNG export projects are now vying for financing in an already crowded market, and developers are competing to offer flexible pricing options to potential off-takers.
The Dutch Title Transfer Facility (TTF) is Europe’s biggest natural gas trading hub and acts as a regional price benchmark.
The Japan Korea Marker (JKM), published by commodity pricing agency S&P Global Platts is Asia’s main LNG price benchmark.
NextDecade expects a final investment decision on its Rio Grande LNG project in Brownsville, Texas, at the end of the third quarter and is planning to announce additional contracts by the end of March, he said.
Rio Grande is a six-train facility to be sited at the Port of Brownsville, with a project cost estimated at $17.3 billion and planned final capacity of 27 million tonnes of LNG a year.
It will be supplied with natural gas from the Permian Basin, Eagle Ford Shale and other resources.
Recommended Reading
Weyerhaeuser, Lapis Energy Enter Carbon Sequestration Exploration Pact
2024-02-29 - The exploration agreement covers 187,500 acres across three states with five potential carbon sequestration sites.
Talos Energy Sells CCS Business to TotalEnergies
2024-03-18 - TotalEnergies’ acquisition targets Talos Energy’s Bayou Bend project, and the French company plans to sell off the remainder of Talos’ carbon capture and sequestration portfolio in Texas and Louisiana.
Eni, Vår Energi Wrap Up Acquisition of Neptune Energy Assets
2024-01-31 - Neptune retains its German operations, Vår takes over the Norwegian portfolio and Eni scoops up the rest of the assets under the $4.9 billion deal.
Marketed: Anschutz Exploration Corp. WI Opportunity in Converse County, Wyoming
2024-01-26 - Anschutz Exploration Corp. retained EnergyNet for the sale of its WI participation option in Converse County, Wyoming.
Excelerate Energy, Qatar Sign 15-year LNG Agreement
2024-01-29 - Excelerate agreed to purchase up to 1 million tonnes per anumm of LNG in Bangladesh from QatarEnergy.