RIYADH: Energy giant Saudi Aramco has signed a non-binding agreement with US-based NextDecade to supply 1.2 million tonnes per annum of liquefied natural gas for 20 years.
According to a press statement, LNG will be supplied from the fourth liquefaction train at NextDecade’s Rio Grande Facility at the Port of Brownsville in Texas.
“Aramco and NextDecade are currently in the process of negotiating a binding agreement, and once executed, the effectiveness of which will be subject to a positive final investment decision on Train 4,” said Aramco in the press statement.
Aramco’s Upstream President Nasir K. Al-Naimi said the company is exploring opportunities to expand its presence in the global energy market.
“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,” said Al-Naimi in the release.
“We expect LNG to play an important role in meeting the rising demand for secure and efficient energy,” he added.
Matt Schatzman, chairman and CEO of NextDecade, said he is “pleased to have reached a heads of agreement with Aramco for LNG from Train 4, as Aramco seeks to expand its LNG portfolio.”
Saudi Aramco, one of the biggest energy firms in the world, has been taking crucial steps in recent months to expand its global presence.
In May, Aramco completed the acquisition of a 40 percent stake in Gas & Oil Pakistan, officially marking the Saudi company’s entry into Pakistan’s fuel retail market.
In April, Saudi Aramco disclosed that it is in talks to acquire a 10 percent stake in China’s Hengli Petrochemical, aiming to strengthen Aramco’s growing downstream presence in the Asian country.
In February, speaking at the India Energy Week in Goa, Faisal Faqeer, Saudi Aramco’s senior vice president of liquids to chemicals development downstream, revealed that the energy giant is engaged in investment discussions with several Indian companies.
Earlier this month, Saudi Aramco also retained the leading spot in Forbes Middle East’s Top 100 listed companies for 2024, with $660.8 billion in assets and $1.9 trillion in market value.
Moreover, Saudi Aramco continued its strong fiscal performance in the first quarter of this year amid global economic uncertainties and geopolitical tensions.
On May 12, Saudi Aramco revealed that its net profit for the first quarter of this year reached $27.27 billion, representing a rise of 2.04 percent compared to the last three months of 2023.
According to a statement, the oil firm’s total revenue for the three months to the end of March stood at $107.21 billion, with total operating income for the period reaching $58.88 billion.
