Saudi Aramco has signed a non-binding agreement with NextDecade, a U.S. liquefied natural gas (LNG) provider, to supply 1.2 million tonnes per annum (MTPA) of LNG for 20 years, the companies announced on Thursday.
Aramco is seeking to strengthen its position in the LNG market with this deal, which comes at a time when global LNG demand is expected to grow by 50% by 2030. This is particularly relevant in the United States, where LNG capacity is projected to nearly double over the next four years.
Earlier this month, a report revealed that Aramco was in talks with NextDecade and U.S. firm Tellurian regarding two separate liquefied natural gas (LNG) projects, as the Saudi company aims to enhance its gas trading and production capabilities.
Aramco and NextDecade announced they are negotiating a binding agreement, contingent on a positive final investment decision on Train 4, which NextDecade expects in the second half of 2024.
In May, Abu Dhabi National Oil Company (ADNOC) acquired an 11.7% stake in phase 1 of NextDecade’s LNG project, which includes the first three liquefaction trains, and entered into a 20-year supply agreement for the fourth train.