NextDecade Secures 20-Year, 2.0 MTPA LNG Offtake Deal with JERA for Rio Grande Train 5

An illustrative rendering of NextDecade's Rio Grande LNG Facility, with Train 5 highlighted, symbolizing the 20-year supply agreement with JERA.

NextDecade Corporation has announced the execution of a significant 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with JERA, Japan’s largest power generator. The agreement secures 2.0 million tons per annum (MTPA) of LNG from Train 5 at the Rio Grande LNG Facility.

Terms of the Agreement

As per the terms of the SPA, JERA will purchase the LNG on a free on board (FOB) basis, with the pricing indexed to Henry Hub, subject to a positive Final Investment Decision (FID) on Train 5. This deal marks a significant step forward in NextDecade’s efforts to commercialize its Rio Grande LNG project and bring Train 5 to fruition.

Strategic Partnership with JERA

Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer, said, “We are pleased to announce JERA, the largest power generator in Japan and a long-established LNG market leader, as a customer for Rio Grande LNG Train 5.”

He added, “We have seen strong commercial momentum this year for Rio Grande LNG, which is helping us commercialize Train 5 toward a positive FID.”

Also read: NextDecade Signs LNG Offtake Agreement with TotalEnergies for Rio Grande LNG Train 4

Path to Positive Final Investment Decision

The positive FID for Train 5 is contingent on several factors, including reaching appropriate commercial arrangements, finalizing an engineering, procurement, and construction (EPC) agreement, and securing sufficient financing to construct Train 5 and related infrastructure.

NextDecade's agreement with JERA enhances its position in the global LNG market and moves the company one step closer to achieving the full potential of its Rio Grande LNG Facility.