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NextDecade issues market fundamentals update and webcast

NextDecade - Market Fundamentals Announcement

NextDecade today issued a Market Fundamentals Update and Webcast, focused on the global LNG and Texas oil and gas markets.

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Access the Market Fundamentals Presentation

Presentation summary:

Over the course of the last several months, the NextDecade team has conducted extensive analysis of the global LNG and the Texas oil and gas markets. This work has involved data analysis from an array of resources and interaction with a wide range of commercial counterparts.

Our analysis confirms that, in any COVID-19 recovery scenario, Texas will require incremental LNG export capacity to support projected natural gas production growth. More specifically, we estimate the Texas Gulf Coast may need up to 73 mtpa of incremental LNG export capacity – equivalent to 9.6 Bcf/d – by 2030.

The long-term fundamentals of NextDecade’s Rio Grande LNG project remain firmly intact, and development of the project remains critically important to the future of the global LNG and Texas oil and gas markets.

Global markets have endured unprecedented conditions in recent months. While the onset of the COVID-19 pandemic has affected market conditions, there are several things that have not changed:

  1. The global LNG market requires more capacity. The market is expected to tighten in the coming years, with LNG demand exceeding supply beginning in 2022. Thus, more projects must achieve a final investment decision in the near future to offset the expected global LNG supply shortfall.
  2. The Permian Basin offers one of the deepest inventories of economic natural gas resource in the world. With ever-improving drilling efficiencies, the Permian has proven resilient through prior downturns and is home to the largest concentration of investment-grade producers in the United States.
  3. Natural gas production in Texas is still expected to grow significantly – by up to 10 Bcf/d – by 2030.

At NextDecade, we are pleased to have a solid foundation and optimal positioning to deliver the largest LNG export solution linking Permian Basin and Eagle Ford Shale natural gas to the global LNG market.

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