NextDecade Corp. and Energy Transfer LP separately on Monday clinched more sales and purchase agreements (SPA) for their respective liquefied natural gas (LNG) export projects proposed for South Texas and Louisiana.

rio grande

France’s Engie SA negotiated a 15-year, 1.75 million metric ton/year (mmty) SPA with Houston-based NextDecade for gas from Rio Grande in Brownsville, TX. Engie could receive gas on a free-on-board (FOB) basis from the  first two trains of the proposed 27 mmty project. Each of the proposed five trains is expected to have 5.87 mmty of capacity.

The first train could begin producing commercial LNG in 2026 if the project is sanctioned by the end of June, NextDecade management said. No final investment decision (FID) has yet been made.

CEO Matt Schatzman said the Engie deal was an “important step” to demonstrate the company’s efforts to reduce emissions associated with the project. The SPA “shows how we can help meet our buyers’ climate change initiatives, while providing them access to secure energy supply.”

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Engie in 2020 reportedly was negotiating a 20-year contract with NextDecade for the Brownsville facility. Talks ended after questions were raised about the environmental implications. The French government owns a 23.63% share in Engie.

Since then, NextDecade has proposed carbon capture and sequestration systems to reduce Rio Grande’s emissions. It also inked an initial storage agreement with Occidental Petroleum Corp.

NextDecade clinched its first supply agreement with Shell plc in 2019. The company inked its second offtake agreement in March with Chinese utility Guangdong Energy Group Natural Gas Co. Ltd. In April, NextDecade announced a 20-year, 1.5 mmty deal with China’s Enn LNG Pte Ltd., a Singapore-based subsidiary of Enn Natural Gas Co. Ltd.

Since Russia invaded Ukraine in February, U.S. LNG producers have signed several long-term SPAs with mostly Asian buyers. Between February and the beginning of April, Chinese companies secured 7.7 mmty of domestic supply. The deal with Engie would be one of the first long-term SPAs for Europe since the Ukrainian conflict began in February.

In the other agreement announced Monday, Dallas-based Energy Transfer secured a 20-year, 2 mmty deal with Gunvor Singapore Pte Ltd. for gas on a FOB basis from the proposed Lake Charles LNG project. The gas price for the Calcasieu Ship Channel project would be indexed to Henry Hub.

If it reaches a positive FID, deliveries could begin as early as 2026. Energy Transfer LNG President Tom Mason said the project may be sanctioned by the end of the year.