NextDecade has finalized a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with a subsidiary of Aramco.
This agreement entails the procurement of 1.2 million tonnes per annum (mtpa) of LNG from Train 4 at the Rio Grande LNG facility located in Texas, US. The Aramco subsidiary will obtain the LNG on a free on-board basis, with pricing linked to Henry Hub.
The successful final investment decision (FID) for Train 4 hinges on establishing suitable commercial arrangements and securing sufficient financing for construction and related infrastructure.
Situated on a 984-acre site in Brownsville, Texas, the Rio Grande LNG facility aims to produce LNG with low carbon intensity.
NextDecade’s chairman and CEO, Matt Schatzman, stated: “We are extremely pleased to have Aramco as a customer in Rio Grande LNG Train 4. The Rio Grande LNG Facility continues to attract outstanding LNG customers, which we believe is a testament to the quality of our project.”
Last month, Baker Hughes entered into a framework agreement with NextDecade to supply gas turbine and refrigerant compressor technology for trains four through eight of the facility.
In addition to providing technology, Baker Hughes will also offer maintenance services for the equipment packages.
Furthermore, NextDecade’s subsidiary, Rio Grande LNG Train 4, awarded an engineering, procurement, and construction (EPC) contract to Bechtel Energy in August of last year for the Train 4 expansion.
This EPC contract, valued at approximately $4.3 billion, encompasses the construction of Train 4 and its associated infrastructure.
The total estimated costs for the Train 4 project and related infrastructure are projected to be between $6 billion and $6.2 billion.
Source: NextDecade
