NEXT - NextDecade reaches 20-year China supply deal for Rio Grande LNG

NextDecade (NASDAQ:NEXT) +1.9% pre-market after saying it reached a binding agreement to supply liquefied natural gas to Guangdong Energy Group Natural Gas for 20 years from the Rio Grande LNG export project in Brownsville, Texas. Under the heads of agreement, Guangdong Energy will purchase as much as 1.5M metric tons/year of LNG indexed to Henry Hub; the supply initially will come from Rio Grande LNG Train 1, which is expected to start commercial operations in 2026. Assuming further LNG contracting and financing, NextDecade says it expects to make a positive final investment decision on a minimum of two trains at Rio Grande LNG in this year's H2. NextDecade, which previously signed a long-term contract with Shell covering 2M mt/year, is seeking sufficient supply deals to support Rio Grande's estimated $15.7B cost of construction. NextDecade has said it expects Rio Grande LNG will be "the greenest LNG project in the world."

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NextDecade reaches 20-year China supply deal for Rio Grande LNG