QatarEnergy is in advanced negotiations with US-based NextDecade to purchase up to 2 million metric tons per annum (mtpa) of liquefied natural gas (LNG) from its Rio Grande LNG export project in Texas, according to two sources familiar with the discussions, Reuters reported.
The potential agreement covers supplies from Train 6 of the project, which remains subject to regulatory approvals and has yet to reach a final investment decision (FID). NextDecade has already committed the full production capacity of the facility’s first five trains through previous sales agreements.
QatarEnergy has been expanding its portfolio of long-term LNG supply agreements with US exporters amid ongoing tensions in the Middle East. The strategy aims to diversify its supply sources and strengthen its trading position against potential disruptions to shipments through the Strait of Hormuz, QatarEnergy CEO Saad Sherida Al-Kaabi told Reuters last month.
In October, QatarEnergy was negotiating purchases of approximately 3 mtpa from each of Venture Global and Woodside Energy. The company has also secured a long-term sales and purchase agreement with Cheniere Energy for 4 mtpa of LNG.
Located near Brownsville, Texas, the Rio Grande LNG project is among the largest LNG export developments in the US. Its first five trains are expected to have a combined production capacity of approximately 30 mtpa once fully operational.
NextDecade submitted a permit application for Train 6 to the Federal Energy Regulatory Commission (FERC) in May and subsequently filed an application with the US Department of Energy in June seeking authorization to export LNG.