Saudi Arabia’s Aramco, like the UAE’s ADNOC, looks to offtake LNG from NextDecade Corp.’s Rio Grande LNG (RGLNG) Train 4 in Brownville, Texas. A move that will source feed-gas from the Permian and Eagle Ford.
Aramco and NextDecade executed a non-binding Heads of Agreement (HOA) for 1.2 million tonnes per annum (mtpa) of LNG from the facility, NextDecade said in a Jun. 13 press release.
Per the terms of the HOA, Aramco will acquire LNG over 20 years on a free on board basis at a price indexed to Henry Hub. Once executed, the agreement will be subject to a positive final investment decision (FID) on Train 4.
NextDecade is targeting FID of Train 4 in the second half of 2024, subject to finalizing and entering into an engineering, procurement and construction contract, gaining appropriate commercial support and obtaining adequate financing to construct Train 4 and related infrastructure, the company said in the release.
Aramco’s interest in RGLNG is part of the Middle Eastern company’s strategy to expand its presence and LNG portfolio in international energy markets. Aramco has reportedly been in talks with Tellurian regarding a stake in its 27.6 mtpa Driftwood LNG project near Lake Charles, Louisiana, according to Reuters.
NextDecade is constructing a five-train facility—situated on a 984-acre site near Brownsville—in two phases that will offer 27 mtpa of liquefaction capacity. Phase 1 will consist of three trains with 17.6 mtpa of capacity. Phase 2 will include two trains with 9.4 mtpa of capacity.