NextDecade Corporation has announced the signing of a 20-year liquefied natural gas sale and purchase agreement with JERA, one of the world’s largest buyers of LNG and the largest power generator in Japan. The agreement covers LNG offtake from Train 5 at NextDecade’s Rio Grande LNG Facility in South Texas.
Under the terms of the SPA, JERA will purchase 2.0 million tonnes per annum of LNG for 20 years on a free-on-board basis. The purchase price will be indexed to the Henry Hub benchmark, and the agreement is subject to a positive Final Investment Decision on Train 5.
“We are pleased to announce JERA, the largest power generator in Japan and a long-established LNG market leader, as a customer for Rio Grande LNG Train 5,” said Matt Schatzman, chairman and chief executive officer of NextDecade. “We have seen strong commercial momentum this year for Rio Grande LNG, which is helping us commercialize Train 5 toward a positive FID.”
The FID for Train 5 remains contingent upon several conditions, including securing appropriate commercial agreements, finalising an engineering, procurement, and construction (EPC) contract, and arranging sufficient financing for construction and associated infrastructure.
The agreement further strengthens NextDecade’s position as a key LNG supplier and underscores growing demand for long-term, reliable energy partnerships in the global market.
For more information visit www.next-decade.com
