RIYADH — Aramco and NextDecade Corporation announced that their subsidiaries have signed a non-binding Heads of Agreement (HoA) for a 20-year liquefied natural gas (LNG) sale and purchase agreement.

The agreement involves the offtake from Train 4 at the Rio Grande LNG facility located at the Port of Brownsville, Texas.

Under the terms of the HoA, Aramco plans to purchase 1.2 million tonnes per annum (MTPA) of LNG over 20 years, with the pricing indexed to Henry Hub and delivered on a free-on-board basis. Both parties are currently negotiating a binding agreement, contingent upon a positive final investment decision regarding Train 4.

Nasir K. Al-Naimi, President of Aramco Upstream, expressed enthusiasm about finalizing the long-term LNG offtake agreement, noting, "We expect LNG to play an important role in meeting the rising demand for secure and efficient energy as we aim to expand our presence in international energy markets."

Matt Schatzman, Chairman and CEO of NextDecade, also commented on the development, stating, "We are pleased to have reached a Heads of Agreement with Aramco as they seek to expand their LNG portfolio. We anticipate finalizing the LNG SPA with Aramco and exploring further collaborative opportunities." — SG