Demand for LNG will increase due to supplies to China
2022.12.28 00:36
Demand for LNG will increase due to supplies to China
Budrigannews.com – NextDecade, a developer of LNG in the United States (NASDAQ:), In a sales and purchase agreement it signed with China’s ENN Natural Gas Co. Ltd., Corp said that the volume of LNG it supplies will increase. According to a statement from NextDecade dated Tuesday, ENN will now purchase 2 million tonnes per annum (mtpa) of LNG through a wholly-owned subsidiary called ENN LNG (Singapore) Pte Ltd.
All supply volumes will be indexed to the Henry Hub and come from the first three trains at NextDecade’s Rio Grande LNG export project (RGLNG) in Brownsville, Texas.
In the beginning of April, NextDecade announced that it would provide a unit of China’s ENN with 1.5 mtpa of LNG for a period of twenty years.
In its statement on Tuesday, the American company said that it wants to make a final investment decision (FID) on the first three trains of the RGLNG export project in the first quarter of 2023. Then, it wants to make FIDs on the other trains.
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In the year 2021, China brought in 78.8 million tonnes of the chilled fuel, making it the world’s largest importer of LNG. China’s customs data show that nearly 9 million tonnes, or 11%, of its imports came from the United States.
