NextDecade has struck a deal to supply 1 million tonnes per year of LNG from its planned Rio Grande project to ExxonMobil.
NextDecade said it had agreed a 20-year agreement with ExxonMobil LNG Asia Pacific.
Rio Grande LNG in Texas will provide the gas from its first two trains. NextDecade expects to approve the final investment decision (FID) on up to three trains at the project in the second half of this year.
The first train could begin producing in 2026. The trains will have capacity of 5.5mn tpy.
“The signing of this long-term SPA with ExxonMobil, a global leader in the energy industry, represents another significant milestone for RGLNG and signifies the beginning of a mutually beneficial relationship,” said Matt Schatzman, NextDecade’s chairman and CEO.
“This agreement highlights the success of NextDecade’s strategy to provide customers with low carbon-intensive LNG to help them meet their carbon reduction goals, while providing them access to secure energy supply.”
Exxon’s senior vice president for LNG Peter Clarke said the company was looking forward to working with NextDecade “to continue growing ExxonMobil’s LNG portfolio and delivering the lower-emissions energy the world needs”.
Asian demand
Earlier this month, NextDecade struck two 20-year deals with two Chinese companies on LNG supplies.
Guangdong Energy Group will buy 1mn tpy from the Rio Grande LNG plant. The LNG price is indexed to Henry Hub and provided on a delivery ex-ship (DES) basis.
China Gas Hongda Energy Trading agreed to a similar deal, although on a free on-board (FOB) basis.
The first of these Chinese deals will see gas sourced from Train 1, while the second will use Train 2, which may start up in 2027.
Other offtakers include Engie, which will take 1.75mn tpy for 15 years, and China’s ENN LNG, for 1.5mn tpy over 20 years.
Rio Grande LNG will consist of five trains, with production of 27mn tpy. NextDecade has said it is targeting carbon neutrality at its project.
Exxon is taking an increasingly significant stance in LNG. In May, the company signed up for 2mn tpy of supplies from Venture Global. Furthermore, it is working with QatarEnergy (QE) on the Golden Pass LNG project, in the US. This is due to begin producing in 2024.
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