NextDecade announced the execution of a sale and purchase agreement (SPA) with Galp Trading S.A. (Galp), for the long-term supply of liquefied natural gas (LNG) from NextDecade’s Rio Grande LNG (RGLNG) export project in Brownsville, Texas.

Under the 20-year SPA, Galp will purchase 1.0 million tonnes per annum (MTPA) of LNG indexed to Henry Hub on a free-on-board basis.

“We are honored to have Galp, one of Portugal’s largest energy companies and a key player in the Iberian Peninsula, as our customer,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “We look forward to helping Galp, as well as other European companies and their customers, meet their energy needs by offering a lower-cost, reliable source of LNG with lower carbon-intensity.”

NextDecade is currently targeting a positive Final Investment Decision (FID) on the first three trains of the RGLNG export project during the first quarter of 2023, with FIDs of its remaining trains to follow thereafter.