Energy behemoth Saudi Aramco and US startup NextDecade have inked a non-binding deal to supply 1.2 million tons of liquefied natural gas annually for 20 years.
LNG will be delivered by the fourth liquefaction train at NextDecade’s Rio Grande Facility at the Port of Brownsville in Texas, according to a news release.
In the news release, Aramco stated that it and NextDecade were “currently in the process of negotiating a binding agreement, the effectiveness of which, once executed, will be subject to a positive final investment decision on Train 4.”
According to Nasir K. Al-Naimi, President of Aramco’s Upstream Division, the corporation is looking into ways to increase its footprint in the international energy market.
Al-Naimi stated in the announcement, “We’re excited to finalize the terms of a long-term LNG offtake agreement with NextDecade as we explore opportunities to expand our presence in international energy markets.”
“We anticipate that LNG will be a significant contributor to fulfilling the growing need for safe and effective energy,” he continued.
“Pleased to have reached a heads of agreement with Aramco for LNG from Train 4, as Aramco seeks to expand its LNG portfolio,” expressed NextDecade chairman and CEO Matt Schatzman.
One of the largest oil companies in the world, Saudi Aramco, has been making significant moves in the last few months to increase its global footprint.
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