China Gas will purchase one million tonnes per annum of US LNG from NextDecade Corporation under a 20-year sales and purchase agreement (SPA) signed on Tuesday (5th July).

Signed by China Gas Hongda Energy Trading, a China Gas subsidiary, the deal will see LNG supplied from the second train of the Rio Grande LNG export project in Brownsville, Texas.

Commercial operation of the train is set to commence as early as 2027.

Matt Schatzman, Chairman and CEO of NextDecade, said, “We are pleased to announce the signing of this long-term SPA with China Gas, one of China’s largest natural gas distribution companies supplying approximately 43 million households across China.”

“This SPA demonstrates the continued acceleration of Rio Grande LNG project’s commercial momentum and highlights our successful strategy of offering customers flexible, competitive and low-carbon intensive LNG.”

Yalong Qi, General Manager of China Gas Hongda Energy Trading, added, “The signing of this long-term SPA with NextDecade will further optimise China Gas’ portfolio, expand resource supply channels and ensure that we can meet our customers’ growing demand for quality reliable and low carbon content energy.”

“This SPA demonstration China Gas’ determination to unswervingly implement China’s national low-carbon energy development strategy.”