NextDecade Corp, the U.S. liquefied natural gas (LNG) developer, announced a new sales and purchase agreement signed with China’s ENN Natural Gas Co. Ltd., which will see it increase the volume of LNG supplies it will deliver to the world’s second largest economy, as it finally completes its reopening.
According to a statement by NextDecade released Tuesday, ENN has agreed through the wholly-owned subsidiary ENN LNG (Singapore) Pte Ltd, to purchase 2 million tons per annum (mtpa) of LNG from the American company. That marks an increase of 0.5 mtpa over the original agreement between the companies.
The first three trains at NextDecade’s Rio Grande LNG Export facility (RGLNG), in Brownsville, Texas, will supply all volumes on a free-on-board basis. They will be indexed to the Henry Hub.
Previously in April, NextDecade had announced it had signed a 20-year deal to supply 1.5 mtpa of LNG to a unit of China’s ENN.
In its Tuesday statement, the US gas supplier added it would be targeting a final investment decision (FID) on the first three trains of Q1 2023, of the RGLNG export project, with subsequent FIDs of its remaining trains.
In 2021, China was the world’s top importer of LNG, importing 78.8 million tons of the fuel that year. According to Chinese customs data, nearly 9 million tons, or 11% of the nation’s total imports come from the United States.