QatarEnergy advances talks to buy NextDecade Train 6 LNG supply in Texas
QatarEnergy is expanding its push for U.S. liquefied natural gas supplies as it holds advanced talks with NextDecade over volumes from the developer's Rio Grande project in Texas. The discussions cover up to 2 million metric tons a year from Train 6, a proposed expansion unit that is still in the permitting process and has not yet reached a final investment decision.
Highlights
- QatarEnergy is in advanced talks to buy LNG volumes from NextDecade's proposed Train 6 at the Rio Grande LNG export facility in Texas.
- NextDecade targets a final investment decision for Train 6 in 2027 as commercial interest surpasses its capacity, with potential future expansions to Trains 7 and 8.
- QatarEnergy is prioritizing long-term U.S. LNG supply deals to mitigate risks from potential Persian Gulf export disruptions amid Middle East conflict.
Train 6 negotiations and project timeline
As reported by Reuters, the proposed deal involves LNG volumes from Train 6 at NextDecade's Rio Grande LNG export facility, according to two people familiar with the matter.Neither NextDecade nor QatarEnergy immediately responds to requests for comment. NextDecade has already sold out capacity from the first five trains, the company says when it approved those projects.
Rio Grande LNG is under construction near Brownsville, Texas, and the first five trains are expected to produce about 30 million metric tons of LNG a year when fully operational. That makes the project one of the largest LNG export developments underway in the U.S.
Strategic value for U.S. LNG trade
QatarEnergy is aggressively pursuing long-term supply deals with U.S. LNG exporters amid the ongoing conflict in the Middle East. Chief Executive Saad Sherida Al-Kaabi told Reuters last month the strategy is aimed at generating revenue if exports through the Strait of Hormuz are disrupted again in the future.NextDecade previously says commercial interest in Train 6 exceeds its nameplate capacity, with a final investment decision targeted for 2027. If approved, the train would be built next to the first five units and would mark the first stage of a broader expansion that could later add Trains 7 and 8, lifting total liquefaction capacity at the site to about 48 mtpa.
Our earlier article on WTO warnings about lasting trade impacts from the Middle East war explained that repeated disruptions are pushing companies to redesign supply chains and shipping routes beyond short-term fixes. We noted the WTO’s forecast for a sharp drop in Middle East exports and imports in 2024, and its view that diversification and costlier contingency planning could persist even after conflicts ease.
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