NextDecade Signs 20-Year LNG Supply Agreement With Aramco

Group 1 - NextDecade Corporation (NEXT) has signed a 20-year sale and purchase agreement with Aramco for 1.2 million tons per annum (mtpa) of liquefied natural gas (LNG) from its Rio Grande LNG Facility, with pricing linked to the Henry Hub benchmark [1] - The Rio Grande LNG project is the largest privately funded LNG project in Texas, strategically located near the Permian Basin and Eagle Ford shale, ensuring a reliable natural gas supply [2] - The project is expected to provide enough energy to heat and cool nearly 34 million U.S. households annually once fully operational [2] Group 2 - Construction of Phase 1 of the Rio Grande LNG project is underway, with a non-binding agreement with Aramco finalized in June 2024 for LNG from Train 4 [3] - The project has faced environmental and legal challenges, but recent legal clearances allow construction to proceed without further roadblocks [4] - The deal with Aramco underscores the commercial viability and infrastructure readiness of Train 4, validating the project's quality [5] Group 3 - The path to a Final Investment Decision (FID) for Train 4 involves securing additional commercial agreements and capital, with Aramco's commitment enhancing the project's prospects [6] - NextDecade plans to finalize an engineering, procurement, and construction contract for Train 5 in 2025, with further expansions for Trains 6, 7, and 8 in the pipeline [7] - The Rio Grande LNG facility is positioned to become a major global LNG hub, reflecting its strategic importance in the energy sector [7]