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China Gas and NextDecade Sign 20-year Long-Term LNG Agreement

China Gas - Press release

China Gas Holdings Limited, a leading natural gas operator in China, has announced that its wholly-owned subsidiary China Gas Hongda Energy Trading Co., LTD and Rio Grande LNG, LLC, a subsidiary of NextDecade Corporation, have signed a LNG sale and purchase agreement (SPA).

Pursuant to the SPA, NextDecade will, from Rio Grande’s LNG project, supply one million tons of LNG
per year to China Gas on a free-on-board (FOB) basis. The purchase price is indexed to the benchmark
price of Henry Hub. The SPA is valid for 20 years, under which the first batch of LNG is expected to be
delivered in 2027. Upon Rio Grande LNG, LLC satisfying certain prerequisites, including making the
Final Investment Decision (FID) regarding Rio Grande's LNG project, the SPA will take effect.
Mr. Liu Ming Hui, Chairman, Managing Director and President of the Group, said, “The SPA will
enable us to optimize our gas supply structure and broaden supply channels, ensuring that we can
meet the increasing demand for high quality, stable and clean energy from our customers. At the same
time, as the project’s LNG emits less greenhouse gas emissions per unit, the SPA demonstrates our
determination to firmly follow the national low-carbon strategy.”
Mr. Matt Schatzman, Chairman and CEO of NextDecade, said, “China Gas is a leading natural gas
distributor in China and we are very pleased to sign this 20-year LNG SPA with it. The signing of the
SPA is proof of continuous development of the Rio Grande LNG project gathering speed and strong
momentum, and also the success of our strategy to provide users with flexible, competitive, and low-carbon LNG."
As one of the largest cross-regional integrated energy suppliers and service providers in China, China
Gas has successfully developed a comprehensive business profile, with piped gas business at the core,
and other businesses such as LPG, LNG, gas for vehicles and vessels, urban heating, new energy,
distribution and sales of electricity, charging stations, manufacture of gas equipment and kitchen
appliances, and e-commerce. As at 31 March 2022, it had 660 piped gas projects with concession
rights in 30 provinces, municipalities and autonomous regions and provided natural gas services to
more than 43 million residential users and 350,000 industrial and commercial users. As a leader in the
gas industry, China Gas has entered into strategic cooperation agreements with leading players in
other industries to continuously expand its business footprint and actively develop businesses in the
green and alternative energy areas, continuously offering customers with comprehensive "Dual-Carbon" products and services covering photovoltaic, sale of green power, carbon asset management,
low-carbon and energy-saving building management, green transportation and digital micro-grid,
among others.
NextDecade Corporation is an energy company accelerating the path to a net-zero future. Leading
innovation in more sustainable LNG and carbon capture solutions, NextDecade is committed to
providing the world access to cleaner energy. Through its wholly owned subsidiaries Rio Grande LNG
and NEXT Carbon Solutions, it is developing a 27 MTPA LNG export facility in South Texas along with
one of the largest carbon capture and storage projects in North America.

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