Aramco, NextDecade Sign 20-Year Liquefied Natural Gas Supply Pact

By Christian Moess Laursen

Saudi Aramco and NextDecade signed a 20-year preliminary sale-and-purchase pact for liquefied natural gas, as the Saudi oil giant continues to bolster its LNG position and expand internationally.

The Saudi Arabia state-owned company said Thursday that it expects to buy 1.2 million metric tons a year of the superchilled gas from the U.S. energy-industry supplier's Rio Grande facility in Texas.

No financial details were disclosed and the companies are currently negotiating a binding agreement. The gas will be supplied by the Train 4 liquefaction unit and a deal is therefore dependent on NextDecade advancing the construction of the unit.

"We look forward to finalizing the terms of a long-term LNG offtake agreement with NextDecade, as we explore opportunities to expand our presence in international energy markets," Aramco Upstream President Nasir Al-Naimi said.

Two weeks ago, Aramco completed the acquisition of 40% stake in Gas & Oil Pakistan, while in April it bought a 10% stake in Hengli Group's petrochemical unit.

In late May, Abu Dhabi state-owned Adnoc bought a 11.7% stake in NextDecade's Rio Grande LNG project, and signed a 20-year LNG offtake deal for 1.9 million tons a year.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

June 13, 2024 09:18 ET (13:18 GMT)

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