NextDecade signs 20-year LNG supply deal with EQT for Rio Grande Train 5

NextDecade has signed a 20-year LNG supply deal with EQT for Rio Grande Train 5. (Image: NextDecade)

NextDecade Corp. has signed a 20-year sale and purchase agreement with EQT Corp. for liquefied natural gas from Train 5 of the Rio Grande LNG project in Brownsville, Texas.

Under the deal, EQT will purchase 1.5 million tonnes per annum of LNG on a free on board basis at a price linked to Henry Hub. The agreement is contingent on NextDecade reaching a positive final investment decision (FID) on Train 5, expected later this year.

“We have made great strides in the commercialization of Rio Grande LNG Train 5, and today we are announcing a long-term SPA with EQT, one of the largest producers of natural gas in the United States,” said Matt Schatzman, NextDecade chairman and CEO. “The LNG we are selling from our project to EQT will play a critical role in enhancing the energy security of our allies around the world.”

Advancing toward Train 5 FID

The company has now sold 3.5 MTPA of LNG under long-term agreements from Train 5 and is targeting an additional 1.0 MTPA to support a positive FID. Total costs for Train 5 and related infrastructure are expected to be about $6.7 billion, including the engineering, procurement and construction (EPC) contract with Bechtel Energy, owner’s costs, contingencies, financing fees, and proportionate use of common facilities at Rio Grande LNG.

NextDecade said it has extended the price validity period of its lump-sum turnkey EPC contract with Bechtel until November 15, 2025. The company expects to complete commercialization of Train 5 in the third quarter and make a final investment decision in the fourth quarter, subject to financing.

Progress on Train 4 and wider LNG portfolio

In addition to Train 5, NextDecade expects to reach a positive FID on Train 4 by September 15, 2025, also contingent on financing.

The Rio Grande LNG project is designed for up to 48 MTPA of liquefaction capacity. NextDecade is also pursuing a carbon capture and storage project at the site to reduce the facility’s emissions profile.

Headquartered in Houston, NextDecade develops LNG export and carbon capture infrastructure aimed at delivering secure, lower-carbon energy to global markets.