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Project Insights

NextDecade signs first US LNG contract linked to Brent

The company’s Brent-indexed supply deal with Shell underlines how project developers are adjusting to buyer demand for greater flexibility on terms such as pricing points The company’s Brent-indexed supply deal with Shell underlines how project developers are adjusting to buyer demand for greater flexibility on terms such as pricing points.
By Colin Shek 2 April 2019 Americas / LNG 0 34094
Oil drilling in the Permian Basin. (Devon Energy)

NextDecade will sell 2 mtpa from its Rio Grande LNG project in Texas to Shell for 20 years, the United States-based LNG project developer announced on Tuesday. The cost of the supplies will be linked mainly to Brent oil prices, which indicates US LNG project developers with access to the Permian Basin can supply competitively priced oil-indexed LNG.

The sales-and-purchase agreement (SPA), announced on the first day of the LNG2019 conference in Shanghai, will be the first long-term contract for...