SEATTLE (Oil Monster): In an effort to strengthen its position as the market leader for LNG worldwide, ConocoPhillips announced that it has signed a 20-year sales and purchase agreement (SPA) with NextDecade Corporation.
According to the deal, 1 million tonnes of LNG per annum (MTPA) will be offtaken from the Rio Grande LNG facility, which is situated close to Brownsville, Texas. The agreement is subject on NextDecade making a final investment decision (FID) on the facility's Train 5.
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For both businesses, the agreement represents a significant turning point. ConocoPhillips will benefit from it as it advances its efforts to create a flexible and varied LNG supply network. The business previously declared its goal to sign agreements for a total of 10 to 15 MTPA. The deal is a significant milestone for NextDecade in obtaining the required commercial support for the FID on Train 5.
ConocoPhillips' Chief Commercial Officer, Khoa Dao, stated that the company is thrilled to contribute to the project's advancement towards FID while promoting its worldwide LNG portfolio strategy and providing further optimisation options.
This agreement completes Train 5's commercialisation. In the last quarter of this year, NextDecade expects to achieve a positive FID for Train 5. By mid-September of this year, a favourable FID on Train 4 is anticipated.
