NextDecade Inc. (NEXT) stock declined by 7.80% in the last trading close whereas the NEXT stock price rises by 23.08% during the after-hour trading session after NEXT announced that their Oxy Low Carbon Ventures have signed a term sheet for CO2 transportation and storage in South Texas. NextDecade is a company dedicated to provide the world with cleaner energy. The two subsidiaries of NEXT, Rio Grande LNG and NEXT Carbon Solutions is working on the development of 27 mtpa LNG export project in South Texas alongside another major project of carbon capture and storage in North America.
NEXT Carbon Solutions, a new project
In the beginning of March 2021, NEXT announced the development of a new subsidiary “NEXT Carbon Solutions” owned by NEXT that will be one of the biggest carbon capture and storage projects in North America at Rio Grande LNG. It is also expected that this new project NEXT Carbon Solutions will ensure the capture and permanent geologic storage of more than five million tons of CO2 per year.
Today NextDecade announced the signing of a term sheet for the offtake and long-term geologic storage of CO2 collected from Next Decade’s proposed Rio Grande LNG project in Brownsville, Texas.
OLCV would offtake and ship CO2 from the Rio Grande LNG project and permanently accumulate it in an underground geologic formation in the Rio Grande Valley which has considerable CO2 storage space, under the terms of a CO2 Offtake Agreement and a Sequestration and Monitoring Agreement which is yet to be agreed by the parties.
NEXT is planning to make final investment decision (FID) on at least two trains at Rio Grande LNG in 2021, and FID on NEXT Carbon Solutions’ CCS project shortly after FID at Rio Grande LNG, in order to understand the major benefits associated with co-development of Rio Grande LNG and the CCS project.