NextDecade And Shell Execute 2 MTPA, 20-Year LNG Sale And Purchase Deal

(RTTNews) - NextDecade Corp. (NEXT) announced a 20-year sale and purchase agreement or "SPA" with Shell NA LNG LLC for the supply of two million tons per annum or "MTPA" of liquefied natural gas or "LNG" from NextDecade's Rio Grande LNG export project in Brownsville, Texas.

As per the SPA, Shell will purchase LNG on a free-on-board basis starting from the commercial operation date of Rio Grande LNG, currently expected in 2023, with approximately three-quarters of the purchased LNG volumes indexed to Brent and the remaining volumes indexed to domestic United States gas indices, including Henry Hub.

The SPA is the first-ever long-term contract with LNG produced out of the United States to be indexed to Brent and comes with full destination flexibility.

NextDecade anticipates making a positive final investment decision on up to three trains (Phase I) of the Rio Grande LNG project by the end of the third quarter of 2019.