ENN in offtake agreement for Rio Grande LNG
US LNG developer NextDecade said April 6 ENN LNG (Singapore) had signed a 20-year sale and purchase agreement (SPA) for 1.5mn mt/yr from NextDecade’s proposed Rio Grande LNG project in Texas.
ENN LNG is a wholly-owned subsidiary of China’s ENN Natural Gas, which operates the first large-scale private LNG terminal in China at Zhousan. In 2021, it sold about 27.2bn m3 of natural gas, accounting for about 10% of total Chinese consumption.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The LNG, purchased on a free-on-board basis and indexed to Henry Hub, will come from the first two trains at Rio Grande, expected to start operations as early as 2026. Pending additional offtake agreements and financing, NextDecade expects to take a final investment decision on at least two trains of the five-train, 27mn mt/yr project in the second half this year.
“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,” NextDecade CEO Matt Schatzman said. “This SPA underscores the strength of NextDecade’s differentiated offering. The commercial momentum at Rio Grande is accelerating and we believe the company is well placed to benefit from the strengthening LNG market.”
Paired with the NEXT Carbon Solutions carbon capture and storage (CCS) development, Rio Grande LNG would capture and store more than 90% of the emissions associated with natural gas pre-treatment and liquefaction, or more than 5mn mt/yr of CO2-equivalent.