NextDecade Corporation announced the execution of a 20-year sale and purchase agreement (“SPA”) with China Gas Hongda Energy Trading Co., LTD (“China Gas”), a wholly-owned subsidiary of China Gas Holdings Limited (HKEX:00384) for the supply of liquefied natural gas (“LNG”) from NextDecade's Rio Grande LNG export project (“RGLNG”) in Brownsville, Texas. Under the SPA, China Gas will purchase 1.0 million tonnes per annum (“MTPA”) of LNG indexed to Henry Hub and delivered on a free-on-board (“FOB”) basis. The LNG will be supplied from the second train at Rio Grande LNG, which is expected to start commercial operations as early as 2027.

Based on current expected demand for LNG and assuming the achievement of further LNG contracting and financing, NextDecade anticipates making a positive final investment decision (“FID”) on up to three trains of the Rio Grande LNG export project in the second half of 2022, with FIDs of its remaining trains to follow thereafter.