The majority of global LNG contracts are indexed to oil. NextDecade’s Brent-indexed offering is competitive with international offerings and provides customers full destination flexibility and no revenue sharing requirements.
NextDecade offers competitively priced LNG on a free-on-board basis with a fixed liquefaction fee plus a feed gas component comprised of a percentage of the prevailing Henry Hub price.
NextDecade’s LNG customers have an opportunity to structure contracts on U.S. indexes other than Henry Hub, including Agua Dulce and Waha.
This option allows customers to leverage South Texas gas prices which could trade at a discount to the Henry Hub.
This option allows customers to directly access the abundant associated gas resources of the Permian Basin. Additional transportation costs from the Waha hub to Agua Dulce are incorporated into the fixed liquefaction fee.
Benefits of multiple pricing options to stakeholders
Natural gas flow assurance (to sustain oil production programs) through reliable, long-term demand centers on the Texas Gulf Coast
Ability to sell gas priced off of Brent and other indexes
Significant upside potential through access to global LNG markets
Global LNG customers
Multiple pricing options out of one LNG project that can compete with U.S. Henry Hub-based projects and global oil-based projects
Free-on-board (FOB) contract carries no destination restrictions or revenue sharing provisions, affording superior flexibility and potential upside
Increased demand for project due to multiple pricing options
Material portion of commercial portfolio expected to be indexed to Brent, delivering potentially higher cash flows with downside protection