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NextDecade signs a 20-year agreement with Aramco for the supply of LNG from Rio Grande.

NextDecade, a U.S. producer of liquefied gas, announced on Tuesday that it had signed a 20-year agreement with a Saudi Aramco subsidiary to supply supercooled gas from its Rio Grande plant.

The Aramco subsidiary is expected to purchase 1.2 millions tonnes of LNG per year from Train 4 in Rio Grande, which will be its fourth liquefaction plant, if the final investment decision on the facility is positive.

In declaring a state of energy emergency, President Donald Trump promised to unleash American power. This strategy includes a growth in LNG exports.

In March, the country exported more than 9 millions metric tons of LNG.

NextDecade has been developing the Rio Grande LNG Export Plant for several years and has suffered repeated delays. Its phase 1 is expected to be completed by early 2029, at a cost of approximately $18 billion.

The company has made an FID for the construction of the first three liquefaction trains at the project by 2023.

The statement said that a positive FID for Train 4 was subject to "entering into appropriate commercial agreements and obtaining sufficient financing to build Train 4 and its related infrastructure". (Reporting and editing by Anil D’Silva in Bengaluru, Shilpa Majumdar, and Tanay Dhumal)

(source: Reuters)