ConocoPhillips today announced it has signed a long-term sales and purchase agreement (SPA) to lift 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from the Rio Grande LNG project under development by NextDecade Corporation (NASDAQ: NEXT), near Brownsville, Texas.
Under the agreement, ConocoPhillips will offtake LNG over a 20-year term on a free-on-board basis, subject to NextDecade making a positive final investment decision (FID) on Train 5.
“ConocoPhillips is pleased to announce our agreement with a premier operator in NextDecade at Rio Grande LNG, where we will be a key foundation customer for Train 5,” said Khoa Dao, chief commercial officer for ConocoPhillips. “We’re excited to help move this project closer to FID while advancing our global LNG portfolio strategy and 10 to 15 MTPA offtake ambition. We continue to build scale and diversification, adding supply and sales points offering further optionality for optimization.”
Additionally, ConocoPhillips’ extensive expertise and experience in heavy hydrocarbon removal from feed gas is utilized at the Rio Grande LNG facility through its OCP CryoSep technology. OCP CryoSep provides targeted recovery and/or removal of heavy hydrocarbons that would otherwise freeze or lead to high BTU content in LNG and is offered as a stand-alone unit for any LNG liquefaction process or as an integrated unit for the Optimized Cascade® process LNG trains.
ConocoPhillips continues to enhance its flexible and reliable LNG supply network to meet growing energy demand. Most recently, the company announced a long-term offtake agreement for 4 MTPA of LNG from Port Arthur LNG Phase 2, which is in addition to a prior agreement for 5 MTPA of LNG from Phase 1.
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