Why NextDecade Stock Is Rallying Higher Wednesday

NextDecade Corporation NEXT shares are rallying 45% higher on Wednesday after the company announced it has entered into framework agreements with Global Infrastructure Partners and TotalEnergies to support the development of the Rio Grande LNG project (RGLNG).

What To Know:

NextDecade, Global Infrastructure Partners and TotalEnergies have entered into framework agreements under which GIP will become a majority investor in Phase 1, and TotalEnergies would become a 16.67% investor. The agreements are expected to further provide GIP and TotalEnergies options to invest in RGLNG Train 4 and Train 5 and options to invest in the planned carbon capture and sequestration (CCS) project at RGLNG.

"This announcement marks a momentous milestone for NextDecade," said Matt Schatzman, chairman and CEO of NextDecade. "We are excited to work with GIP and TotalEnergies on RGLNG and our proposed CCS project at RGLNG. We are also eager to grow our partnership with GIP and TotalEnergies focusing on our shared vision to reduce carbon emissions in the energy sector."

The Rio Grande LNG project is expected to offer competitively priced and less carbon intensive LNG products and will be the largest privately funded infrastructure project in the State of Texas.

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NEXT Price Action: According to Benzinga Pro, NextDecade shares are trading 45% higher at $7.44 at the time of publication.

Image: Mohamed_hasan From Pixabay