NextDecade and ENN Execute 1.5 MTPA LNG Sale and Purchase Agreement
April 06 2022 - 8:00AM
Business Wire
NextDecade Corporation (“NextDecade”) (NASDAQ: NEXT) announced
today the execution of a 20-year sale and purchase agreement
(“SPA”) with ENN LNG (Singapore) Pte Ltd (“ENN LNG”), a
wholly-owned subsidiary of ENN Natural Gas Co., Ltd. (“ENN”) for
the supply of liquefied natural gas (“LNG”) from NextDecade’s Rio
Grande LNG export project (“RGLNG”) in Brownsville, Texas.
Under the SPA, ENN LNG will purchase 1.5 million metric tonnes
per annum (MTPA) of LNG indexed to Henry Hub on a free-on-board
basis. The LNG supply will be from the first two trains at RGLNG
with the first train expected to start commercial operations as
early as 2026.
“We are pleased to announce this long-term LNG SPA with ENN, a
premier Chinese energy company. As one of China’s largest private
companies, ENN is a major participant in China’s energy market, and
we look forward to a successful, long-term relationship with ENN,”
said Matt Schatzman, NextDecade’s Chairman and Chief Executive
Officer. “This SPA underscores the strength of NextDecade’s
differentiated offering. The commercial momentum at RGLNG is
accelerating and we believe the company is well placed to benefit
from the strengthening LNG market.”
Zheng Hongtao, President of ENN Natural Gas Co., Ltd said, “This
agreement secures additional volume for our LNG portfolio and helps
ensure we can meet the growing demand for secure, flexible, and
cleaner energy for our customers in the future. The signing of this
SPA reflects ENN’s goal of promoting the global energy transition
and is of significance given RGLNG’s low GHG emissions profile
relative to other LNG supply sources. We look forward to working
with NextDecade in the years to come.”
Assuming the achievement of further LNG contracting and
financing, NextDecade anticipates making a positive final
investment decision (“FID”) on a minimum of two trains of the Rio
Grande LNG export project in the second half of 2022, with FIDs of
its remaining three trains to follow thereafter.
About NextDecade Corporation
NextDecade Corporation is an energy company accelerating the
path to a net-zero future. Leading innovation in more sustainable
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.
About ENN Natural Gas
As one of the largest private energy companies in China, ENN
Natural Gas Co., Ltd. (Stock code 600803.SH) operates over 250 city
gas projects nationwide, has annual LNG distribution capacity over
10 bcm, and runs the first large-scale private LNG terminal in
China -- Zhoushan LNG Terminal. Its business layout covers the
entire natural gas value chain, including distribution, trading,
storage and transportation, production, and engineering. Relying on
industry best practice, ENN Natural Gas Co., Ltd. has built an
intelligent operation platform for the natural gas industry –
GreatGas.cn. It accelerates the aggregation of demand, resources,
reserves, and delivery ecology of the natural gas industry,
innovates and develops digital intelligence services, and promotes
the digital intelligence upgrade of the natural gas industry. In
2021, ENN Natural Gas Co., Ltd.’s total natural gas sales volume
was 37.2 bcm, accounting for approximately 10% of China’s total
natural gas consumption.
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.
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