US natural gas driller EQT Corp. is in talks to take a supply of liquefied natural gas from NextDecade Corp.’s export terminal, which is being built in Texas.
Under the terms of the potential deal, EQT would load the super-chilled fuel from the Rio Grande LNG facility, according to people familiar with the matter, who asked not to be identified because the discussions are confidential.
EQT declined to comment while a NextDecade spokesperson didn’t immediately respond to a request for comment.
EQT, one of the largest gas producers in the US, already supplies existing LNG plants in the US. Taking delivery of LNG would enable it to expand into international markets. EQT announced a deal Wednesday to receive 2 million tons per year of LNG from the expansion of Sempra’s Port Arthur export terminal.
The potential NextDecade accord and the Sempra deal reflect two major trends currently shaping US energy: the relentless growth of domestic gas production, and the simultaneous build-out of LNG export capacity, which has turned the country into the leading shipper of the fuel for markets in Asia and Europe.
Rio Grande LNG is located near Brownsville and its first three production units, known as trains, are under construction. Totalenergies and Adnoc are among the customers for a planned Train 4, for which financing efforts are ongoing. EQT would get LNG from Train 5. NextDecade has yet to say when it will make a final investment decision for Train 5.