EQT Inks 20-Year LNG Supply Deal with NextDecade’s Rio Grande Project

EQT has signed a 20-year deal with NextDecade for 1.5 MTPA of LNG from Train 5 of the Rio Grande export project in Texas. The agreement marks a key step in EQT’s global expansion strategy as U.S. LNG demand continues to grow.

(P&GJ) — EQT Corp. has signed a 20-year agreement with NextDecade Corp. to secure 1.5 million tonnes per annum (MTPA) of liquefaction capacity at Train 5 of the Rio Grande LNG export project in Texas.

The sale and purchase agreement is based on free-on-board delivery, with pricing indexed to Henry Hub. The deal is contingent on NextDecade reaching a positive final investment decision (FID) for Train 5.

“The execution of this agreement represents continued momentum of EQT's LNG strategy, which is focused on further diversifying the company's end-market exposure into the rapidly growing global gas markets and accelerating long-term earnings growth,” said Toby Z. Rice, EQT President and CEO. “Consistent with our existing LNG deals, EQT will market and optimize its own cargos, providing structuring flexibility and downside protection.”

Rice added that EQT’s growing LNG portfolio, combined with its scale and emissions profile, positions the company as a preferred supplier in international markets seeking to replace coal with natural gas.

Matt Schatzman, NextDecade Chairman and CEO, said, “We are pleased to have EQT, one of the largest producers of natural gas in the United States, as a customer of Rio Grande LNG Train 5. Liquefied natural gas exported from the United States will continue to play a critical role in enhancing the energy security of our allies around the world.”

NextDecade is developing the multi-train Rio Grande LNG project near Brownsville, Texas, which is designed to serve growing global LNG demand.