Mayer Brown advised Itochu Corporation in connection with a 15-year Liquified Natural Gas (LNG) sale and purchase agreement with Rio Grande LNG LLC. Under this agreement, Itochu will purchase one million metric tonnes per annum (MTPA) of LNG on a Henry Hub-linked price from the Rio Grande LNG export project in Brownsville, Texas.
The Rio Grande LNG export project will be capable of producing 27 MTPA of LNG at full scale. Next Decade, the promoter of the project, is currently targeting a positive final investment decision on the first three trains of the project during the first quarter of 2023. The project will potentially include a carbon capture and storage system that is designed to reduce at least 90% of the CO2 emissions produced at the Rio Grande LNG Terminal.
“We are delighted to have supported Itochu on this landmark transaction to secure long-term LNG supply from Next Decade,” said partner Nick Kouvaritakis, global head of LNG.
The Mayer Brown team was led by Nick Kouvaritakis and included partners Rupert Burrows (Tokyo) and Sean Prior, Nick Kendrick and Matt Chow (both counsel), senior associate Shi Ning Ong, and associate Kieran McLaughlin (all in Singapore).