Aramco, NextDecade Sign Rio Grande LNG Agreement

Aramco, one of the world’s leading integrated energy and chemicals companies, and NextDecade Corporation (NextDecade) announced that their respective subsidiaries have executed a non-binding Heads of Agreement (HoA) for a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) for offtake from Train 4 at the Rio Grande LNG Facility at the Port of Brownsville, Texas.

Under the terms of the HoA, Aramco expects to purchase 1.2 MTPA of LNG for 20 years on a free on-board basis, at a price indexed to Henry Hub. Aramco and NextDecade are currently in the process of negotiating a binding agreement, and once executed, the effectiveness will be subject to a positive final investment decision on Train 4.

“We look forward to finalizing the terms of a long-term LNG offtake agreement with NextDecade, as we explore opportunities to expand our presence in international energy markets,” said Nasir K. Al-Naimi, Aramco Upstream president. “We expect LNG to play an important role in meeting the rising demand for secure and efficient energy.”

“We are pleased to have reached a HoA with Aramco for LNG from Train 4, as Aramco seeks to expand its LNG portfolio,” said Matt Schatzman, NextDecade chair and chief executive officer. “We look forward to finalizing the LNG SPA with Aramco and pursuing other opportunities together.”