Under the SPA, a unit of Aramco will purchase 1.2 million tonnes per annum (mtpa) of LNG per year from Train 4 at the Rio Grande LNG facility on a free on board basis, at a price indexed to Henry Hub,
This SPA follows a heads of agreement the two firms signed in June 2024.
NextDecade said in a statement that the SPA remains subject to a positive final investment decision (FID) on Train 4.
The US LNG developer added that achieving a positive FID on Train 4 will be subject to, among other things, entering into appropriate commercial arrangements, and obtaining adequate financing to construct Train 4 and related infrastructure.
The US FERC just released a draft supplemental environmental impact statement for NextDecade’s Rio Grande LNG facility.
The regulator said that it continues to conclude that approval of the project would result in “less than significant impact.”
In August 2024, the US Court of Appeals for the D.C. Circuit issued an order vacating FERC’s remand authorization of NextDecade’s Rio Grande LNG facility and the pipeline, saying that FERC should have issued a supplemental EIS during its remand process.
The US Court of Appeals for the D.C. Circuit recently revised its August 2024 judgment against the Federal Energy Regulatory Commission’s order for the first five liquefaction trains at the Rio Grande LNG facility in Texas.
Rio Grande LNG expansion
NextDecade is currently building three trains at the site located on the north shore of the Brownsville Ship Channel in south Texas.
In July 2023, NextDecade took the final investment decision on the first three Rio Grande trains and completed a $18.4 billion project financing.
NextDecade awarded the $12 billion EPC contract to Bechtel, and it officially kicked off work on the plant in October 2023.
The company recently said it is also making “excellent” progress on commercializing Rio Grande LNG trains 4 and 5.
In addition, NextDecade announced plans to build up to five more trains at the Rio Grande LNG facility.
NextDecade said it is developing and beginning the permitting process for trains 6 through 8, which are wholly owned by NextDecade and are cumulatively expected to increase the company’s total liquefaction capacity by approximately 18 million tonnes per annum once constructed and placed into operation.
