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Aramco and NextDecade announce heads of agreement for offtake of LNG from Rio Grande LNG facility

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LNG Industry,

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

Under the terms of the HoA, Aramco expects to purchase 1.2 million tpy 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 finalising 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 ener-gy.”

Matt Schatzman, NextDecade Chairman and CEO, added: “We are pleased to have reached a HoA with Aramco for LNG from Train 4, as Aramco seeks to expand its LNG portfolio. We look forward to finalising the LNG SPA with Aramco and to pursuing other opportunities together.”

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