NextDecade Signs 20-Year LNG Agreement with Aramco Subsidiary for Rio Grande Plant

NextDecade Corporation, a leading energy company focused on providing secure, low-cost, and sustainable energy solutions, has signed a landmark 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with an energy giant Aramco subsidiary. The SPA is for the offtake from Train 4 at NextDecade's Rio Grande LNG plant in Texas.

Under the terms of the agreement, Aramco's affiliate will purchase 1.2 million tons annually (MTPA) of LNG for two decades. The transactions will be on a free-on-board (FOB) delivery basis with prices tied to the Henry Hub natural gas index. The agreement is subject to NextDecade making a favorable Final Investment Decision (FID) on Train 4.

Positive Outlook from Leadership

Matt Schatzman, CEO and Chairman of NextDecade, was enthusiastic regarding the agreement, stating, "We are extremely pleased to have Aramco as a customer in Rio Grande LNG Train 4.”

He added, “The Rio Grande LNG Facility continues to attract outstanding LNG customers, which we believe is a testament to the quality of our project.”

Also read: NextDecade and Baker Hughes Partner on LNG Expansion at Rio Grande Facility

Train 4 Progress Hinging on Significant Milestones

The ultimate approval for the construction of Train 4 will depend on a number of significant milestones. Among them are completing commercial negotiations successfully and obtaining financing for the additional facilities. A favorable FID will approve the expansion, providing additional capacity for the Rio Grande LNG project.

The deal emphasizes increasing support for NextDecade's ambitious vision at Rio Grande, as global demand for American LNG continues to rise.