NextDecade Corp. has landed a second customer for its proposed Rio Grande liquefied natural gas (LNG) project in South Texas, announcing a long-term deal with a major Chinese utility as it heads closer to a possible final investment decision (FID) later in the year. 

NextDecade

The Houston-based company disclosed Thursday it has entered a heads of agreement with Guangdong Energy Group Natural Gas Co., Ltd. for 1.5 million metric tons/year (mmty) of LNG indexed to the Henry Hub.

Both companies are expected to complete a sale and purchase agreement (SPA) in 2Q for gas to be supplied from the Brownsville terminal’s first train. According to NextDecade’s current timeline, the first train at Rio Grande would be operational in 2026.

Guangdong Energy Chairman Zhu Zhanfang said the...