Aramco and NextDecade announce Heads of Agreement for offtake of LNG from Rio Grande LNG Facility

17 June 2024

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

Under the terms of the HoA, Aramco expects to purchase 1.2 million tonnes per annum  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 of which will be subject to a positive Final Investment Decision on Train 4.

Nasir K. Al-Naimi, Aramco Upstream President, said: "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. We expect LNG to play an important role in meeting the rising demand for secure and efficient energy.”

Matt Schatzman, NextDecade Chairman and Chief Executive Officer, said: “We are pleased to have reached a Heads of Agreement with Aramco for LNG from Train 4, as Aramco seeks to expand its LNG portfolio. We look forward to finalizing the LNG SPA with Aramco and to pursuing other opportunities together.”

Media contact information
All media enquiries are handled by Aramco's Media & Executive Communications Department, Dhahran, Saudi Arabia.

 

Source:aramco.com