NextDecade Locks In 20-Year LNG Supply Deal With Aramco: Details
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 13 2024
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Source: Business Insider
- NextDecade Corporation and Aramco Agreement: NextDecade Corporation (NASDAQ:NEXT) and Saudi Oil giant Aramco have signed a non-binding Heads of Agreement for a 20-year LNG project in Texas.
- Deal Details: The agreement includes a 20-year liquefied natural gas sale and purchase agreement for 1.2 million tonnes per annum from Train 4 at the Rio Grande LNG Facility, with pricing indexed to Henry Hub.
- Future Plans: Aramco and NextDecade are working on a binding agreement that will be effective upon a positive Final Investment Decision on Train 4, expected in the second half of 2024.
- Statements from Executives: Nasir K. Al-Naimi of Aramco Upstream expressed interest in expanding their presence in international energy markets through LNG, while NextDecade's CEO, Matt Schatzman, looks forward to finalizing the agreement with Aramco.
- Investment Opportunities: Investors can access exposure to NextDecade stock through Listed Funds Trust Roundhill Alerian LNG ETF (NYSE:LNGG) and Exchange Traded Concepts Trust Range Global LNG Ecosystem Index ETF (NYSE:LNGZ).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
