ZACKS·2025-04-15 10:55Core Insights - NextDecade Corporation has signed a long-term LNG supply agreement with TotalEnergies, committing to 1.5 million tons per annum for 20 years, indexed to the Henry Hub price [1] - The partnership with TotalEnergies is an extension of their successful collaboration on the Rio Grande LNG Phase 1 project [2] - The Rio Grande LNG project is the largest privately funded LNG project in Texas, benefiting from its location near the Permian Basin and Eagle Ford shale, ensuring a reliable natural gas supply [3] Group 1: Agreement Details - The recent agreement brings NextDecade's total long-term contracts for Train 4 to 4.6 million tons per annum, which includes contracts with companies like Saudi Aramco [4] - The commercial agreements are expected to facilitate a positive Final Investment Decision (FID) for Train 4, indicating strong support for the project's advancement [4] Group 2: Future Outlook - TotalEnergies currently exports over 10 million tons per annum from the U.S. and aims to increase this to 15 million tons per annum by 2030, with the new agreement aiding in this goal [5] - NextDecade is focusing on the financial and logistical preparations necessary to bring Train 4 online, which could significantly impact both the company and the broader LNG market [6]