Aramco sign 20-year LNG sale and purchase agreement
Published by Oliver Kleinschmidt,
Assistant Editor
Tanks and Terminals,
Aramco and NextDecade Corp. have announced that their respective subsidiaries have executed a non-binding Heads of Agreement (HoA) for a 20-year LNG sale and purchase agreement (LNG SPA) for offtake from Train 4 at the Rio Grande LNG Facility at the Port of Brownsville, Texas, US.
Under the terms of the HoA, Aramco expected to purchase 1.2 million tpy 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: "We look forward to finalising 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.”
Matt Schatzman, NextDecade Chairman and Chief Executive Officer, said: “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 finalising the LNG SPA with Aramco and to pursuing other opportunities together.”
NextDecade is targeting FID of Train 4 in the 2H24, subject to finalising and entering into an engineering, procurement and construction (EPC) contract, gaining appropriate commercial support, and obtaining adequate financing to construct Train 4 and related infrastructure.
Read the article online at: https://www.tanksterminals.com/terminals/17062024/aramco-sign-20-year-lng-sale-and-purchase-agreement/
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