Saudi Aramco and NextDecade Corporation (NextDecade) announced today a non-binding Heads of Agreement (HoA) for a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA), reported the Saudi Press Agency (SPA).
According to the HoA, Aramco anticipates the purchase of 1.2 million tons per annum (MTPA) of LNG from Train 4 at the Rio Grande LNG Facility at the Port of Brownsville, Texas, USA.
The deal will continue for 20 years on a free on board basis, at a price indexed to Henry Hub.
Both companies are currently negotiating a binding agreement and upon execution, the agreement will be subject to a positive Final Investment Decision on Train 4.
Nasir K. Al-Naimi, Aramco Upstream President, stated that this success stands as a testament to the Aramco’s pursuit to expand its presence in international energy markets.
“We look forward to finalizing the terms of a long-term LNG offtake agreement with NextDecade. We expect LNG to play an important role in meeting the rising demand for secure and efficient energy,” said Al-Naimi.
Furthermore, Matt Schatzman, NextDecade Chairman and Chief Executive Officer, commended the current deal with Aramco highlighting NextDecade’s pursuit to explore new opportunities with the Saudi oil giant Aramco.
“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,” Schatzman added.
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