NextDecade and ENGIE Execute 1.75 MTPA LNG Sale and Purchase Agreement
May 02 2022 - 7:00AM
Business Wire
NextDecade Corporation (“NextDecade”) (NASDAQ: NEXT) announced
today the execution of a 15-year sale and purchase agreement
(“SPA”) with ENGIE S.A. (“ENGIE”) for the supply of liquefied
natural gas (“LNG”) from NextDecade’s Rio Grande LNG export project
(“RGLNG”) in Brownsville, Texas.
Under the SPA, ENGIE will purchase 1.75 million metric tonnes
per annum (“MTPA”) of LNG on a free-on-board (“FOB”) basis. The LNG
supply will be from the first two trains of Rio Grande LNG, with
the first train expected to start commercial operations as early as
2026.
NextDecade aims to reduce CO2 emissions from RGLNG by more than
90 percent via carbon capture and storage. Combined with
responsibly sourced gas and the use of net-zero electricity,
NextDecade intends to produce a lower carbon-intensive LNG for its
customers.
“We are pleased to announce this SPA with ENGIE, a significant
European energy supplier and leader in the global transition toward
lower carbon energy solutions,” said Matt Schatzman, NextDecade’s
Chairman and Chief Executive Officer. “The signing of this SPA is
an important step in showing our commitment in the areas of
environmental stewardship, social responsibility, and governance
best practices, while upholding the LNG industry’s highest
standards. It also shows how we can help meet our buyers' climate
change initiatives, while providing them access to secure energy
supply.”
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.
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 CCS 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, the pipeline to supply gas
to the Terminal and any CCS projects; ability to develop NCS’
business though implementation of CCS projects; ability to secure
additional debt and equity financing in the future to complete the
Terminal and CCS projects on commercially acceptable terms;
accuracy of estimated costs for the Terminal and CCS projects;
ability to achieve operational characteristics of the Terminal and
CCS projects, when completed, including liquefaction capacities and
amount of CO2 captured and stored, 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 and CCS
industries, including environmental laws and regulations that
impose significant compliance costs and liabilities; scope of
implementation of carbon pricing regimes aimed at reducing
greenhouse gas emissions; global development and maturation of
emissions reduction credit markets; adverse changes to existing or
proposed carbon tax incentive regimes; 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 or CCS projects
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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