Aramco, NextDecade sign heads of agreement for LNG offtake

The signing ceremony 

Saudi Aramco and NextDecade Corporation (NextDecade) announced today, June 13, that their respective subsidiaries have executed a non-binding Heads of Agreement (HoA) for a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) for offtake from Train 4 at the Rio Grande LNG Facility at the Port of Brownsville, Texas, USA.

In an emailed statement to Argaam, Aramco said under the HoA terms, Aramco expects to purchase 1.2 million tonnes per annum (MTPA) 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.

Aramco looks 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, Nasir Al-Naimi, Aramco Upstream President, said.

“We expect LNG to play an important role in meeting the rising demand for secure and efficient energy,” he added.