Aramco has signed a major deal with NextDecade for LNG supply spanning two decades. The Saudi energy giant will purchase 1.2 million tonnes yearly from the Rio Grande project in Texas. It’s Aramco’s first partnership with NextDecade, strengthening its position in the global natural gas market. The agreement uses Henry Hub pricing and supports the growing demand for cleaner energy alternatives. This contract represents a significant boost for U.S. LNG exports and NextDecade’s ambitious Texas facility.
Saudi Arabian oil giant Aramco has inked a major deal with NextDecade to purchase liquefied natural gas (LNG) from the massive Rio Grande project in Texas. The agreement spans 20 years and will see Aramco buying 1.2 million tonnes of LNG annually from Train 4 of the facility.
Aramco secures 20-year deal with NextDecade for 1.2 million tonnes of LNG annually from Texas Rio Grande facility.
This marks the first partnership between Aramco and NextDecade, showing Aramco’s push to diversify beyond oil into cleaner energy solutions. The LNG will be priced according to the Henry Hub benchmark and delivered on a free-on-board basis, giving Aramco flexibility in shipping.
The Rio Grande LNG facility sits on a 984-acre site in Brownsville, Texas. It’s designed to have eight liquefaction trains when fully built. Currently, three trains are under construction as part of Phase 1, which will produce 18 million tonnes per year. NextDecade plans to implement a carbon capture and storage project at the facility to reduce its environmental impact. As of January 2025, Trains 1-2 are 38.1% complete, while Train 3 is 15.3% finished.
For the deal to move forward, NextDecade must make a final investment decision on Train 4. This will depend on securing adequate financing and commercial agreements. Baker Hughes has already been contracted to provide turbines and compressor technology for this expansion. NextDecade has successfully obtained FERC approvals for Trains 1-5, with applications for Train 6 planned for early 2026.
For Aramco, this agreement represents an important step in expanding its global LNG presence. It helps the company meet growing demand for natural gas, particularly in Asian and emerging markets. The deal also strengthens Aramco’s role as a provider of various energy sources rather than just oil. While LNG is cleaner than traditional fossil fuels, incorporating geothermal energy could further reduce the company’s carbon footprint by 99% per megawatt-hour.
The agreement highlights LNG’s growing importance as a cleaner energy option in the global market. It gives NextDecade a stable revenue stream and boosts its ability to finance future development. Bechtel Energy Inc. is handling construction for Phase 1 of the project.
When completed, the entire Rio Grande facility aims to reach a total capacity of 48 million tonnes per year, making it a flagship U.S. LNG export facility serving international markets.
