NextDecade $NEXT stock formed a downtrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... breakout as it punched through its 200 day moving average. The stock is in a technical weak uptrend.
China Moving To Corner the LNG Market
The signing of a 15-year sale and purchase agreement (SPA) between NextDecade (NEXT) and Itochu Corporation (ITOCY) for the supply of liquefied natural gas (LNG) from NextDecade’s Rio Grande LNG (RGLNG) export project in Brownsville, Texas, was recently announced. In accordance with the SPA, ITOCHU will buy 1 million tonnes of LNG annually that is free-on-board and indexed to Henry Hub. “We are honored to have Itochu Corporation as our first Japanese customer,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “We look forward to providing Itochu and their customers with LNG, and we are actively working to reduce the carbon footprint of the Rio Grande LNG facility through our proposed carbon capture and storage project.”
Meanwhile, Texas-based Energy Transfer and a private Chinese energy company called ENN Group have a 20-year agreement for the purchase of 2,700,000 tonnes of LNG annually. ENN also increased its 20-year purchase agreement with Texas-based NextDecade to 2 million tonnes annually. Additionally, NextDecade has committed to providing China Gas Holdings, whose primary shareholder is an investment vehicle under the control of the city of Beijing, with 1 million tonnes of LNG annually.
According to a report from the European research firm Rystad Energy, China signed long-term LNG purchase agreements worth close to 50 million tonnes annually for 2021 and 2022. China has increased its long-term contract purchases from an annual volume of roughly 16 million tonnes from 2015 to 2020 by three times in just two years, in a not-so-subtle attempt to corner the LNG market.
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