NextDecade Stock Rocketed Today; Is It a Buy?
Shares of NextDecade (NASDAQ: NEXT) soared by double digits today. Igniting the rally was news that the liquified natural gas (LNG) project developer signed an agreement with a Chinese company to buy LNG from its proposed Rio Grande LNG project. It's an important step for the company.
China's Guangdong Energy Group agreed to buy 1.5 million metric tons of LNG per year from NextDecade. The 20-year contract would see it purchase LNG from train one of the terminal, which could start operations by 2026. It will become NextDecade's second foundational customer, joining Royal Dutch Shell.
Those customers have agreed to purchase a combined 3.5 million metric tons of LNG each year. That puts NextDecade one step closer to sanctioning at least two LNG trains at Rio Grande LNG. The company hopes to make a positive final investment decision on that project in the second half of this year.
Source Fool.com
