Saudi Aramco Strikes 20-Year LNG Deal with NextDecade in Bold US Expansion Play
In a strategic move that underscores Saudi Aramco’s ambitions to grow its global gas footprint, the energy giant has inked a 20-year liquefied natural gas (LNG) supply agreement with US developer NextDecade. The deal positions Aramco to become a significant long-term buyer from the Rio Grande LNG export terminal located in Texas.
NextDecade confirmed on Tuesday that it has executed a sale and purchase agreement (SPA) with an Aramco subsidiary for offtake from Train 4 at the Rio Grande LNG facility. Under the terms of the agreement, Aramco will purchase 1.2 million tonnes per annum (mtpa) of LNG on a free-on-board (FOB) basis. The pricing will be indexed to Henry Hub, the US benchmark for natural gas prices.
The deal is contingent on a final investment decision (FID) on the development of Train 4, which is expected to follow the current construction and commissioning of the first three trains at the site. Once operational, Rio Grande LNG is set to become one of the largest LNG export hubs in North America, strengthening US energy influence and aligning with Aramco’s diversification strategy beyond oil.
This marks Aramco’s latest step into LNG markets and adds to a growing list of partnerships across Asia, Europe, and North America, signaling the Saudi energy major’s intent to build a more balanced portfolio as global energy dynamics evolve.