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* Signature of a 20-year contract with Shell
* Contract for 2 million tons of LNG per year from Rio Grande
* Three quarters of the Brent-indexed volumes are based on US gas indices.
By Meng Meng and Jessica Jaganathan
SHANGHAI / SINGAPORE, April 2 (Reuters) – US-based NextDecade Corp. announced Tuesday that it has signed the country's first long-term contract for liquefied natural gas (LNG) produced in the United States and indexed to Brent oil prices .
He has signed a 20-year sales and purchase agreement with Royal Dutch Shell for the supply of two million tonnes of LNG per year from NextDecade's LNG export project in Brownsville, Texas, thereby offering the entire flexibility for destinations.
Shell will purchase LNG duty free as of commercial commissioning of the project, which is expected to take place in 2023, NextDecade announced in a statement issued Tuesday at a sector event in Shanghai.
Three quarters of LNG will be indexed to Brent crude oil prices, and the remaining volumes will be indexed to US domestic gas price indicators, including Henry Hub, the company said.
"Shell was the first to sign a US long-term SPA indexed to Henry Hub in 2011, and it is therefore appropriate that they be the first to sign a long-term SPA from an American LNG project. indexed to Brent, "said Matt Schatzman, President and CEO of NextDecade, in the statement.
"We look forward to finalizing new trade agreements and further developing our Rio Grande LNG project," he said.
The deal will secure more volumes for Shell's portfolio in the 2020s and enable the company to meet growing demand from its global customers, "said Slavko Preocanin, vice president of Shell's LNG marketing and trading division.
NextDecade expects a final investment decision on up to three trains of its Rio Grande project by the end of the third quarter of this year.
Rio Grande is planned as a six-train facility in the port of Brownsville, with an estimated project cost of $ 17.3 billion and a final capacity of 27 million tonnes of LNG per year.
It will be fueled by natural gas from the Permian Basin, Eagle Ford shale and other resources. (Report by Meng Meng to SHANGHAI and Jessica Jaganathan in SINGAPORE, edited by Tom Hogue)
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