SEATTLE (Oil Monster): NextDecade Corporation stated that it has signed a 20-year sale and buy deal for the LNG from its Rio Grande LNG Facility in Texas, USA, with an Aramco subsidiary. The deal is contingent upon the facility's Train 4 final investment decision. In June of last year, the non-binding heads of agreement for 1.2 mtpa of LNG from Train 4 with Aramco were signed.
The agreement states that Aramco will buy 1.2 million tons of LNG annually (mtpa) from Train 4 on a free-on-board basis. The Henry Hub benchmark price will serve as the index for the purchasing price.
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The agreement with Aramco will strengthen the project's infrastructural preparedness and commercial appeal.
The Rio Grande LNG project had previously faced a number of legal and environmental issues, which caused building to be delayed. Only recently did the company gain legal permission. As the business advances its commercialization efforts, Phase 1 construction is now under way. With more expansions scheduled for 2026, it intends to complete an EPC contract for Train 5 this year.
Situated on a 984-acre plot of land near the Port of Brownsville, Rio Grande LNG is the biggest privately funded LNG project in Texas. The project is situated advantageously, near Eagle Ford shale and the Permian Basin.
