NextDecade to supply of American LNG under a 15-year contract with Engie
On May 2, 2022, the American corporation NextDecade announced the conclusion of a 15-year sales contract (SPA) with the French Engie for the supply of LNG under the NextDecade LNG export project in Rio Grande, Texas.
According to the agreement, SPA Engie will buy 1.75 million tons of LNG per year (2.415 bcm) on a free-on-board basis ("FOB"). LNG will be supplied from the first two Rio Grande LNG lines, with the first line expected to start commercial operation in 2026.
"We are pleased to announce this agreement with Engie, a major European energy supplier and a leader in the global transition to low-carbon energy solutions," said Matt Shatzman, Chairman and CEO of NextDecade.
It will be recalled that in 2020 the companies were already negotiating a long-term LNG supply agreement, but in November 2020 Engie stopped negotiations. At the time, foreign publications attributed this to pressure from conservationists who opposed an agreement with NextDecade, which produces shale gas LNG. However, amid Russia's aggression against Ukraine, France is looking for other supply routes to replace Russian gas.