NextDecade Corp. announced it has signed a 20-year liquefied natural gas sale and purchase agreement with JERA Co. Inc. for supply from Train 5 at the Rio Grande LNG facility in Brownsville, Texas.

Under the agreement, JERA will purchase 2.0 million tonnes per annum (MTPA) of LNG on a free-on-board basis. Pricing for the LNG will be indexed to the Henry Hub natural gas benchmark. The agreement is contingent upon a positive final investment decision (FID) for Train 5.

“We are pleased to welcome JERA, Japan’s largest power generation company and a leading player in the global LNG market, as a customer for Rio Grande LNG Train 5,” said Matt Schatzman, chairman and CEO of NextDecade. “This agreement marks another significant milestone as we continue to build commercial momentum for the project.”

Train 5 is part of the larger Rio Grande LNG project, a proposed facility located at the Port of Brownsville. The project is designed to export LNG produced from U.S. natural gas resources. Construction of Train 5 and its related infrastructure will only proceed after a positive FID is reached. That decision will depend on securing additional commercial agreements, finalizing an engineering, procurement and construction (EPC) contract, and obtaining the necessary financing.

NextDecade has made substantial progress on the Rio Grande LNG project, with Trains 1 through 3 already under construction. Train 4 and Train 5 are currently in the development phase, with Train 5 expected to benefit from the existing foundation established by the earlier phases.

JERA’s involvement in the project further strengthens NextDecade’s position in the international LNG market. The agreement reflects growing global demand for LNG and continued interest from Asian markets in long-term, stable supply contracts tied to U.S. gas production.

This SPA is among several strategic moves by NextDecade in recent months aimed at advancing the development of Rio Grande LNG. The company continues to negotiate with additional counterparties and aims to secure further commitments that will support Train 5’s commercialization and eventual construction.

Once completed, the full Rio Grande LNG project is expected to produce up to 27 MTPA of LNG, making it one of the largest LNG export terminals in North America.

NextDecade anticipates making a final investment decision on Train 5 once all necessary conditions are met, with the goal of bringing the train online to meet increasing energy needs worldwide.

NextDecade is dedicated to expanding global access to reliable, lower-carbon energy. Our mission is to deliver secure, affordable, and sustainable energy solutions by safely and efficiently developing and operating natural gas liquefaction and carbon capture and storage infrastructure. Through its subsidiaries, NextDecade is advancing the development and construction of the Rio Grande LNG export facility near Brownsville, Texas, which is designed to offer up to 48 million tonnes per annum (MTPA) of liquefaction capacity currently under construction or in development.