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Aramco enters into deal with NextDecade for US’ Rio Grande LNG facility

Aramco enters into deal with NextDecade for US’ Rio Grande LNG facility
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SAUDI ARAMCO
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Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) along with NextDecade Corporation announced, on 13 June 2024, that their subsidiaries have executed a non-binding Heads of Agreement (HoA) for the Rio Grande LNG Facility in the US.

The deal is a 20-year liquefied natural gas sale and purchase agreement (LNG SPA) for offtake from Train 4 at the facility that is located at the Port of Brownsville in Texas, according to a press release.

Aramco expects to purchase 1.20 million tonnes per annum (MTPA) of LNG for 20 years on a free on board basis at a price indexed to Henry Hub.

Currently, the two entities are negotiating a binding agreement, and once executed, the effectiveness of which will be subject to a positive Final Investment Decision on Train 4.

Aramco Upstream President, Nasir K. Al Naimi, 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.”

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

From his part, Matt Schatzman, NextDecade’s Chairman and CEO, said: “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.”

Earlier in June, Aramco unveiled the completion of the secondary public offering of ordinary shares by the government and the setting of the final offer price at SAR 27.25 per share.

In the first quarter (Q1) of 2024, the Saudi oil giant generated net profits worth SAR 102.27 billion and revenues of SAR 402.04 billion.