NextDecade and Guangdong Energy Announce Binding Heads of Agreement
March 24 2022 - 7:00AM
Business Wire
NextDecade Corporation (“NextDecade”) (NASDAQ: NEXT) announced
today the execution of a binding Heads of Agreement (“HOA”) with
Guangdong Energy Group Natural Gas Co., Ltd. (“Guangdong Energy”)
for the long-term supply of liquefied natural gas (“LNG”) for 20
years from NextDecade’s Rio Grande LNG export project in
Brownsville, Texas.
The HOA provides that Guangdong Energy will purchase up to 1.5
million tonnes per annum of LNG indexed to Henry Hub. The LNG
supply will initially be from train one of Rio Grande LNG, which is
expected to start commercial operations in 2026. The HOA also
provides that Guangdong Energy and NextDecade will complete the
sale and purchase agreement (“SPA”) in the second quarter of
2022.
“We are honored to have Guangdong Energy as the second
foundation customer of our Rio Grande LNG project and our first
Chinese customer,” said Matt Schatzman, NextDecade’s Chairman and
Chief Executive Officer. “Guangdong Energy is one of the largest
power generation enterprises in Guangdong and we are pleased they
have entrusted us to supply their rapidly growing business.”
“We are pleased to be entering into a long-term SPA with
NextDecade. Henry Hub-linked LNG will be an important part of our
LNG portfolio as we transit to a greener future and optimize our
resource procurement,” commented by Mr. Zhu Zhanfang, Chairman of
Guangdong Energy Natural Gas Co., “We look forward to a long
lasting and fruitful cooperation with NextDecade, not necessarily
just in LNG supply, but potentially in carbon capture and storage
as well.”
Assuming the achievement of further LNG contracting and
financing, NextDecade anticipates making a positive final
investment decision on a minimum of two trains of the Rio Grande
LNG project in the second half of 2022.
About NextDecade Corporation
NextDecade Corporation is a clean energy company accelerating
the path to a net-zero future. Leading innovation in greener LNG
and carbon capture solutions, NextDecade is committed to providing
the world access to cleaner energy. Through our wholly owned
subsidiaries Rio Grande LNG and NEXT Carbon Solutions, we are
developing a 27 mtpa LNG export facility in South Texas along with
one of the largest carbon capture and storage projects in North
America. We are also working with third-party customers around the
world to deploy our proprietary processes to lower the cost of
carbon capture and storage and reduce CO2 emissions at their
industrial-scale facilities. NextDecade’s common stock is listed on
the Nasdaq Stock Market under the symbol “NEXT.” NextDecade is
headquartered in Houston, Texas. For more information, please visit
www.next-decade.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. The words
“anticipate,” “contemplate,” “estimate,” “expect,” “project,”
“plan,” “intend,” “believe,” “may,” “might,” “will,” “would,”
“could,” “should,” “can have,” “likely,” “continue,” “design,”
“assume,” “budget,” “guidance,” and “forecast” and other words and
terms of similar expressions are intended to identify
forward-looking statements, and these statements may relate to the
business of NextDecade and its subsidiaries. These statements have
been based on assumptions and analysis made by NextDecade in light
of current expectations, perceptions of historical trends, current
conditions and projections about future events and trends and
involve a number of known and unknown risks, which may cause actual
results to differ materially from expectations expressed or implied
in the forward-looking statements. These risks include NextDecade’s
progress in the development of its LNG liquefaction and export
projects and the timing of that progress; the timing of achieving a
final investment decision on the Rio Grande LNG terminal (the
“Terminal”); reliance on third-party contractors to successfully
complete the Terminal and the pipeline to supply gas to the
Terminal; ability to secure additional debt and equity financing in
the future to complete the Terminal on commercially acceptable
terms; accuracy of estimated costs for the Terminal; ability to
achieve operational characteristics of the Terminal, when
completed, including liquefaction capacities, and any differences
in such operational characteristics from expectations; development
risks, operational hazards and regulatory approvals applicable to
NextDecade's development, construction and operation activities and
those of its third-party contractors and counterparties;
technological innovation which may lessen NextDecade's anticipated
competitive advantage or demand for its offerings; global demand
for and price of LNG; availability of LNG vessels worldwide;
changes in legislation and regulations relating to the LNG
industries, including environmental laws and regulations that
impose significant compliance costs and liabilities; global
pandemics, including the 2019 novel coronavirus pandemic, the
Russia-Ukraine conflict, other sources of volatility in the energy
markets and their impact on NextDecade's business and operating
results, including any disruptions in its operations or development
of the Terminal and the health and safety of its employees, and on
its customers, the global economy and the demand for LNG; risks
related to doing business in and having counterparties in foreign
countries; NextDecade's ability to maintain the listing of our
securities on the Nasdaq Capital Market or another securities
exchange or quotation medium; changes adversely affecting the
businesses in which NextDecade is engaged; management of growth;
general economic conditions; ability to generate cash; and the
result of future financing efforts and applications for customary
tax incentives; and other matters discussed in the “Risk Factors”
section of NextDecade’s most recent Annual Report on Form 10-K and
subsequent reports filed with the Securities and Exchange
Commission. Additionally, any development of the Terminal remains
contingent upon completing required commercial agreements, securing
all financing commitments and potential tax incentives, achieving
other customary conditions and making a final investment decision
to proceed. The forward-looking statements in this press release
speak as of the date of this release. Although NextDecade believes
that the expectations reflected in these forward-looking statements
are reasonable, it can give no assurance that the expectations will
prove to be correct. NextDecade may from time to time voluntarily
update its prior forward-looking statements, however, it disclaims
any commitment to do so except as required by securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220324005059/en/
IR@next-decade.com communications@next-decade.com
NextDecade (NASDAQ:NEXT)
Historical Stock Chart
From Aug 2024 to Sep 2024
NextDecade (NASDAQ:NEXT)
Historical Stock Chart
From Sep 2023 to Sep 2024