Aramco and NextDecade Corporation announced today that their subsidiaries have signed a preliminary Heads of Agreement (HoA) for a 20-year liquefied natural gas (LNG) sale and purchase deal. This agreement pertains to the offtake of 1.2 million tonnes per annum (MTPA) from Train 4 at the Rio Grande LNG Facility in Texas, USA. The LNG will be sold on a free on board basis, with pricing linked to Henry Hub.
The parties are currently negotiating a binding agreement, contingent upon a positive Final Investment Decision (FID) on Train 4. Aramco’s Upstream President, Nasir K. Al-Naimi, expressed optimism about expanding into international energy markets through this venture, highlighting LNG’s role in meeting growing energy demand. NextDecade’s Chairman and CEO, Matt Schatzman, emphasized their satisfaction in securing the HoA with Aramco, noting Aramco’s interest in expanding its LNG portfolio.
NextDecade aims to reach FID on Train 4 by the second half of 2024, pending the finalization of an engineering, procurement, and construction (EPC) contract, securing commercial support, and arranging financing for the project and associated infrastructure.
