NextDecade Corporation announced the execution of a binding Heads of Agreement (“HOA”) with Guangdong Energy Group Natural Gas Co. Ltd. (“Guangdong Energy”) for the long-term supply of liquefied natural gas (“LNG”) for 20 years from NextDecade's Rio Grande LNG export project in Brownsville, Texas. The HOA provides that Guangdong Energy will purchase up to 1.5 million tonnes per annum of LNG indexed to Henry Hub.

The LNG supply will initially be from train one of Rio Grande LNG, which is expected to start commercial operations in 2026. The HOA also provides that Guangdong Energy and NextDecade will complete the sale and purchase agreement (“SPA”) in the second quarter of 2022. Assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive final investment decision on a minimum of two trains of the Rio Grande LNG project in the second half of 2022.