NextDecade Signs HOAs for 14 Mtpa of LNG for Rio Grande LNG Facility
November 5, 2015
THE WOODLANDS, Texas, USA – NextDecade LLC, a development and management company of liquefied natural gas (LNG) projects that provides customers access to the full LNG value chain, announced today that it has signed Heads of Agreements (HOAs) totaling 14 Million tons per annum (Mtpa) for the sale and purchase of LNG. These contracts include customers from across Asia and Europe. Moving forward, NextDecade will focus on converting these HOAs to fully-termed sales and purchase/tolling agreements per standard industry practice.
NextDecade’s recent commercial success lays the groundwork to advance its major export projects, including Rio Grande LNG and the roughly 140-mile Rio Bravo Pipeline system that will provide feed gas to the facility in Brownsville, Texas. At full capacity, Rio Grande LNG will be able to liquefy and export up to 27 Mtpa of LNG with initial production of 9 Mtpa expected to begin in 2020. NextDecade expects to make a final investment decision (FID) on the project in early-2017.
“These agreements are paving the way forward for NextDecade’s US-based LNG export projects, Rio Grande LNG and Pelican Island LNG,” said NextDecade CEO Kathleen Eisbrenner. “Despite challenging overall market dynamics, our experience in the marketplace and the conversations that NextDecade has been having with potential LNG buyers tell a very different story. The global market for US-produced LNG is robust. We are attracting a growing number of potential future NextDecade customers. These agreements support our position and strengthen the viability of our projects, both in Brownsville and around the world.”
About NextDecade LLC
NextDecade, based in The Woodlands, Texas, is a global development and management company of land-based and floating LNG projects creating innovative opportunities in the integrated natural gas industry. NextDecade delivers opportunities for customers to meet their unique needs by providing access to the full spectrum of the LNG value chain, including infrastructure development, natural gas supply, and project ownership. In addition, NextDecade provides commercial flexibility and strategic partnerships inside a company culture that respects the values and needs of customers and the communities in which it operates. NextDecade’s current focus includes its Rio Grande LNG project in Brownsville, Texas, in addition to the Pelican Island LNG project in Galveston, Texas. Founded in 2010, NextDecade represents a team of industry leaders with more than 200 years of combined experience in the full LNG value chain, including successfully closing major LNG off-take deals, LNG/FLNG technology, and project management. The world-class team has developed, led, closed and operated industry-leading LNG, Gas and Electricity projects globally. For more information, please visit www.next-decade.com.
Statements made herein by NextDecade, LLC (“ND”) or any of its officers, directors, members, shareholders, employees, advisors, representatives, contractors or agents (“ND Representatives”) may include statements of future expectations and other forward-looking statements that are based on such ND’s or ND Representatives’ present views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to materially differ from those expressed or implied in such statements. ND and ND Representatives assume no obligation to update any forward-looking statement or to update any information contained herein.
About NextDecade Corporation
NextDecade is an LNG development company primarily focused on LNG export projects and associated pipelines in Texas. NextDecade intends to develop a portfolio of LNG projects, including the 27 mtpa Rio Grande LNG export facility in Brownsville, Texas and the 4.5 Bcf/d Rio Bravo Pipeline that would transport natural gas from the Agua Dulce area to Rio Grande LNG. NextDecade’s common stock is listed on the Nasdaq Stock Market under the symbol “NEXT.” NextDecade is headquartered in Houston, Texas.
Located at the Port of Brownsville in South Texas, NextDecade’s Rio Grande LNG project is expected to be a leader among second wave U.S. LNG projects. NextDecade believes its customers and shareholders will benefit from the project’s experienced leadership, proven approach, and optimal location. NextDecade’s technology selections are expected to foster operational reliability and afford NextDecade’s customers access to abundant natural gas from the Permian Basin, Eagle Ford Shale, and other basins.
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words “believe,” “expect,” “intend,” “plan,” “potential,” and similar expressions are intended to identify forward-looking statements, and these statements may relate to the business of the Company and its subsidiaries. These statements have been based on the Company’s current assumptions, expectations, and projections about future events and involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. These risks include uncertainties about the Company’s Rio Grande LNG and Rio Bravo pipeline projects and other matters discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and other subsequent reports filed with the Securities and Exchange Commission, all of which are incorporated herein by reference.
Any development of the projects remain contingent upon completing required commercial agreements; acquiring all necessary permits and approvals; securing all financing commitments and potential tax incentives; achieving other customary conditions; and making a final investment decision to proceed. The forward-looking statements in this press release speak as of the date of this release. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, the Company can give no assurance that the expectations will prove to be correct. The Company may from time to time voluntarily update its prior forward-looking statements, however, it disclaims any commitment to do so except as required by securities laws.
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