NextDecade announces Rio Grande LNG deal

NextDecade’s Rio Grande LNG project. The company announced a 20-year offtake agreement with an Aramco subsidiary. (Image: NextDecade)

NextDecade Corp. has executed a 20-year liquefied natural gas (LNG) sale and purchase agreement with a subsidiary of Aramco for offtake from Train 4 at the Rio Grande LNG Facility.

Under the terms of the SPA, the Aramco subsidiary will 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, subject to a positive Final Investment Decision (FID) on Train 4.

“We are extremely pleased to have Aramco as a customer in Rio Grande LNG Train 4,” said Matt Schatzman, NextDecade Chairman and Chief Executive Officer. “The Rio Grande LNG Facility continues to attract outstanding LNG customers, which we believe is a testament to the quality of our project.”

At full development, Rio Grande LNG will be the largest privately funded project in Texas.

Achieving a positive FID on Train 4 will be subject to, among other things, entering into appropriate commercial arrangements, and obtaining adequate financing to construct Train 4 and related infrastructure.