Houston-based NextDecade said April 1 it has entered into a 20-year LNG supply agreement with Shell NA. The agreement with Shell is for two million tonnes per year of liquefied natural gas from NextDecade’s Rio Grande LNG export project (27 million tonnes per year) in Brownsville. NextDecade said the agreement is “the first-ever long-term contract with LNG produced out of the U.S. to be indexed to Brent and comes with full destination flexibility.” Commercial operation of Rio Grande LNG is expected in 2023.
Matt Schatzman, president and CEO of NextDecade, said, “We look forward to finalizing additional commercial agreements and to proceeding with the development of our Rio Grande LNG project.” NextDecade is an LNG development company focused on export projects and pipelines in Texas