Saudi Aramco has signed a 20-year liquefied natural gas (LNG) purchase agreement with Houston-headquartered producer NextDecade.
The Saudi energy major will purchase 1.2 million tonnes per annum (mtpa) of LNG on a free-on-board basis from NextDecade’s Rio Grande facility at the Port of Brownsville, Texas, the US company said in a statement.
The Rio Grande facility continues to attract “outstanding” LNG customers, said Matt Schatzman, chairman and CEO of NextDecade.
In June 2024, subsidiaries of Aramco and NextDecade signed a non-binding agreement for offtake from Train 4 at the Rio Grande facility, Aramco said in a statement.
Aramco, which trades on the Saudi stock exchange, signed a non-binding agreement in June 2024 to buy 5 million tonnes per year of LNG for 20 years and a 25 percent stake in phase 2 of Sempra’s Port Arthur project.
Last year, Aramco CFO Zaid Al Murshed said that the company is looking to build an LNG export business, as its growing natural gas production will likely exceed its domestic needs.
He added that LNG may replace blue hydrogen and ammonia development plans, which remain the country’s priority.
The company has raised its natural gas production growth target by 2030 to more than 60 percent over 2021 levels.
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