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NextDecade has executed a 20-year liquefied natural gas (LNG) sale and purchase agreement (SPA) with a subsidiary of Aramco.
The agreement involves the purchase of 1.2 million tonnes per annum (mtpa) of LNG from Train 4 at the Rio Grande LNG facility in Texas, US.
This SPA is contingent on a positive final investment decision (FID) for Train 4.
The Aramco subsidiary will acquire the LNG on a free on-board basis, with pricing indexed to Henry Hub.
Achieving a positive FID on Train 4 depends on securing appropriate commercial arrangements and obtaining adequate financing for construction and related infrastructure.
The Rio Grande LNG facility, located on a 984-acre site in Brownsville, Texas, aims to produce low-carbon-intensive LNG.
NextDecade chairman and chief executive officer Matt Schatzman said: “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 a framework agreement with NextDecade to supply gas turbine and refrigerant compressor technology for trains four through eight of the facility.
In addition to technology supply, Baker Hughes will provide maintenance services for the equipment packages.
Additionally, NextDecade's subsidiary, Rio Grande LNG Train 4, awarded an engineering, procurement and construction (EPC) contract to Bechtel Energy in August last year for the Train 4 expansion.
The EPC contract, valued at approximately $4.3bn, includes the construction of Train 4 and its associated infrastructure.
The total estimated project costs for Train 4 and related infrastructure are projected to be between $6bn and $6.2bn.
"NextDecade, Aramco subsidiary sign 20-year LNG deal for Rio Grande LNG Train 4" was originally created and published by Offshore Technology, a GlobalData owned brand.
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