Galp, Next Decade sign LNG deal
Portuguese energy company Galp has signed an agreement with NextDecade to buy 1mn metric tons/year of LNG from Rio Grande LNG project in Texas over a period of 20 years, it said on December 20.
Commercial deliveries covered by this agreement are expected to start in 2027. Volumes purchased by Galp are indexed to Henry Hub on a FOB basis plus a fixed liquefaction fee.
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“This agreement improves Galp's access to volumes of LNG from the US, complementing Venture Global's supplies, which are due to start during 2023,” the company said, adding the deal adds flexibility, geographic diversity and competitiveness to its supply portfolio.
NextDecade anticipates making FID on the first of five trains of the project before the end of this year. Sanctioning of the remaining four trains of the 27mn mt/yr facility would follow thereafter.
In September, Next Decade said it would execute an $85mn private placement of its common shares with 10 institutional, with proceeds used to continue development activity and bring closer an FID on the first three trains at its Rio Grande LNG.
Next Decade has signed multiple LNG supply deals this year, mainly with Asian customers.