In a recent strategic move, subsidiaries of Aramco and NextDecade Corporation have inked a preliminary agreement that could lead to a significant 20-year purchase of liquefied natural gas (LNG). This development is centered around the planned Train 4 at the Rio Grande LNG project in Brownsville, Texas.
The provisional Heads of Agreement (HoA) outlines that Aramco would acquire 1.2 million tonnes of LNG each year, with the pricing tied to the Henry Hub index. Both entities are engaged in discussions to finalize a legally binding contract, the effectiveness of which hinges on a green light for Train 4’s investment.
We expect LNG to play an important role in meeting the rising demand for secure and efficient energy,
stated Nasir K. Al-Naimi, Aramco Upstream President, signaling optimism for the completion of the long-term LNG offtake deal with NextDecade. He also noted Aramco’s intention to broaden its international energy market footprint.
Matt Schatzman, Chairman and CEO of NextDecade, echoed these sentiments, expressing satisfaction at reaching the HoA with Aramco. Schatzman anticipates not only the finalization of the LNG SPA but also the potential for additional collaborations.