NEXT - NextDecade keeps 2021 Rio Grande FID target but needs more contracts

NextDecade (NEXT) still aims to make a final investment decision next year for its proposed Rio Grande LNG export project, hoping it will overcome challenges in its commercial efforts to support the terminal, Senior VP James MacTaggard told the FT Commodities global summit today."We have financing that we have based on expectations of where our contracts will end up firmed up, so it really comes down to aggregating provisions, long-term contracts to underpin the final investment decision," MacTaggart said. "And that is taking longer than we had expected and hoped, but I think we'll be there next year."Shell's 20-year agreement to buy 2M mt/year of supply from Rio Grande LNG is the only firm offtake deal tied to the terminal so far; NextDecade has said it needs to sell another 9M mt/year under long-term contracts to achieve FID on two or three trains at the site in Brownsville, Tex.

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NextDecade keeps 2021 Rio Grande FID target but needs more contracts