Saudi Aramco strikes Heads of Agreement with NextDecade

By Shilpa Annie Joseph, Official Reporter
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Aramco-NextDecade sign deal
Officials during the signing ceremony | Courtesy: Aramco

Aramco and NextDecade have announced that their respective subsidiaries have executed a non-binding Heads of Agreement (HoA) for a 20-year liquefied natural gas sale and purchase agreement (LNG SPA) for offtake 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 currently in the process of negotiating a binding agreement, and once executed, the effectiveness of which will be subject to a positive Final Investment Decision on Train 4.

Nasir K. Al-Naimi, Aramco Upstream President, said that, “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. We expect LNG to play an important role in meeting the rising demand for secure and efficient energy.”

“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. We look forward to finalizing the LNG SPA with Aramco and to pursuing other opportunities together,” commended Matt Schatzman, Chairman and Chief Executive Officer of NextDecade.

Recently, Dell Technologies and Saudi Aramco signed a Memorandum of Understanding (MoU) to explore opportunities in quantum computing, artificial intelligence (AI), edge computing solutions, and advanced computing architectures.

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