NextDecade Corporation announced a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with EQT Corporation. Under this agreement, EQT will purchase 1.5 million tonnes per annum (MTPA) of LNG from Rio Grande LNG Train 5 on a free on board basis. The price will be indexed to Henry Hub, subject to NextDecade making a positive final investment decision (FID) on Train 5.
This agreement marks a significant expansion of EQT's LNG portfolio, allowing it to directly access international markets and potentially realize higher prices for its natural gas. It positions EQT to capitalize on growing global LNG demand, particularly in Europe and Asia. This strategic move diversifies EQT's sales channels and enhances its long-term revenue potential.
The deal underscores EQT's strategy to leverage its position as a major natural gas producer to become a significant player in the global LNG market. This long-term contract provides EQT with greater certainty for future sales volumes and revenue streams.
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