EQT to Acquire LNG from NextDecade's Rio Grande Facility

EQT Corporation, the leading US natural gas producer, has agreed to purchase liquefied natural gas (LNG) from NextDecade's Rio Grande export facility. The deal marks EQT's entry into the LNG market and highlights the company's focus on diversifying its revenue streams. The purchase is expected to help EQT tap into new markets and increase its revenue from LNG sales.

EQT Corporation (NYSE: EQT), a leading US natural gas producer, has announced a significant agreement to purchase liquefied natural gas (LNG) from NextDecade Corporation's Rio Grande LNG export facility in Texas. Under a 20-year Sale and Purchase Agreement (SPA), EQT will receive 1.5 million tonnes per annum (MTPA) of LNG on a free-on-board basis, indexed to the Henry Hub price [1].

The deal represents a strategic move for EQT, which aims to diversify its revenue streams and tap into the rapidly growing global LNG market. Toby Z. Rice, EQT's President and CEO, emphasized that this agreement aligns with the company's LNG strategy, which focuses on expanding end-market exposure and accelerating long-term earnings growth [1].

NextDecade's Chairman and CEO, Matt Schatzman, expressed satisfaction with EQT's involvement, noting that the LNG exported from the United States will continue to enhance the energy security of global allies [1].

This agreement underscores EQT's commitment to its LNG strategy, which includes marketing and optimizing its own cargos, providing structuring flexibility and downside protection. The company's strong balance sheet, low-cost structure, and leading emissions profile position it well to expand its market reach and become a preferred supplier of natural gas worldwide [1].

References:
[1] https://www.prnewswire.com/news-releases/eqt-signs-20-year-deal-with-nextdecade-for-1-5-mtpa-of-lng-from-rio-grande-lng-train-5--302545515.html