NextDecade and Aramco execute 1.2 MTPA LNG agreement from Rio Grande LNG Train 4

NextDecade Corporation has executed a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with a subsidiary of Aramco for offtake from Train 4 at the Rio Grande LNG Facility, the companies said.

Under the terms of the SPA, the Aramco subsidiary will purchase 1.2 million tonnes per annum (MTPA) of LNG for 20 years on a free on board (FOB) basis, at a price indexed to Henry Hub, subject to a positive Final Investment Decision (FID) on Train 4.

“We are extremely pleased to have Aramco as a customer in Rio Grande LNG Train 4,” said Matt Schatzman, NextDecade Chairman and Chief Executive Officer. “The Rio Grande LNG Facility continues to attract outstanding LNG customers, which we believe is a testament to the quality of our project.”

Achieving a positive FID on Train 4 will be subject to, among other things, entering into appropriate commercial arrangements, and obtaining adequate financing to construct Train 4 and related infrastructure, NextDecade said.

Committed to providing world access to reliable, lower carbon energy,  NextDecade is focused on delivering secure, low-cost, and sustainable energy solutions through the safe and efficient development and operation of natural gas liquefaction and carbon capture and storage infrastructure.

It is developing and constructing the Rio Grande LNG natural gas liquefaction and export facility near Brownsville, Texas, with approximately 48 MTPA of potential liquefaction capacity currently under construction or in development.