Aramco and NextDecade Sign Pact for LNG Supply from Rio Grande LNG Facility

Aramco, a leading global energy and chemicals company, and NextDecade Corporation (NextDecade), announced on June 13, 2024, that their respective subsidiaries have entered into a preliminary Heads of Agreement (HoA) for a 20-year liquefied natural gas sale and purchase agreement (LNG SPA) to purchase LNG from Train 4 at the Rio Grande LNG Facility located at the Port of Brownsville, Texas, USA.

As per the HoA, Aramco anticipates acquiring 1.2 million tonnes per annum (MTPA) of LNG for a duration of 20 years on a free on board basis, with pricing linked to the Henry Hub index. Aramco and NextDecade are presently in discussions to finalize a binding agreement, contingent upon a favorable Final Investment Decision for Train 4.

Nasir K. Al-Naimi, President of Aramco Upstream, expressed optimism about concluding a comprehensive LNG offtake agreement with NextDecade. He emphasized the company's interest in expanding its footprint in global energy markets, highlighting LNG's crucial role in addressing increasing demands for reliable and efficient energy solutions.

Matt Schatzman, Chairman and CEO of NextDecade, expressed satisfaction with reaching a Heads of Agreement with Aramco for LNG from Train 4, highlighting Aramco's efforts to broaden its LNG portfolio. He emphasized NextDecade's anticipation of finalizing the LNG SPA with Aramco and exploring additional collaborative opportunities.

Saudi Aramco, also known as the Saudi Arabian Oil Group, is the national oil company of Saudi Arabia and a state-owned entity. Headquartered in Dhahran, it stands as the second-largest company globally by revenue as of 2022. Saudi Aramco operates the largest single hydrocarbon network, the Master Gas System, and has consistently reported record-breaking annual profits. It holds the world's second-largest proven reserves of crude oil and is the top producer in terms of daily oil production among all oil companies worldwide. Saudi Aramco's headquarters are situated in Dhahran, overseeing a global presence that encompasses exploration, production, refining, chemicals, distribution, and marketing. Oversight of these operations is jointly managed by the Saudi Arabian Ministry of Petroleum and Mineral Resources in collaboration with the Supreme Council for Petroleum and Minerals, although the ministry holds greater responsibility in this partnership.

A substantial segment of Saudi Aramco's workforce comprises geophysicists and geologists who have been engaged in oil and gas exploration since 1982, primarily based at the EXPEC Advanced Research Center. Initially focused solely on oil production, Saudi Aramco was mandated by the Saudi government to handle oil refining as well. The company utilizes multiple tankers to transport crude oil, refined products, and natural gas to numerous countries worldwide.