Aramco has signed a non-binding Heads of Agreement (HoA) with NextDecade Corporation to buy LNG from the US-based company.
Aramco, as part of the 20-year liquefied natural gas sale and purchase agreement (LNG SPA), will ensure offtake of LNG from Train 4 at the Rio Grande LNG Facility at the Port of Brownsville, Texas, USA.
Under the terms of the HoA, 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 in the process of negotiating a binding agreement. Financial details were not disclosed.
Nasir K. Al-Naimi, Aramco Upstream President, said: “We look 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.”
Matt Schatzman, NextDecade Chairman and Chief Executive Officer, said: “We have reached a Heads of Agreement with Aramco for LNG from Train 4, as Aramco seeks to expand its LNG portfolio.”