Aramco Places 20-Year Order from Rio Grande LNG Expansion Project

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Aramco Places 20-Year Order from Rio Grande LNG Expansion Project

NextDecade Corp. has secured a 20-year, 1.2 million metric tons per annum (MMtpa) offtake from Saudi Arabian Oil Co. (Aramco) for the planned fourth liquefaction train of the under-construction Rio Grande LNG project in Brownsville, Texas. Houston, Texas-based NextDecade is seeking purchase commitments to be able to make an FID (final investment decision) on trains […]

Houston, Texas-based NextDecade is seeking purchase commitments to be able to make an FID (final investment decision) on trains 4 and 5. NextDecade has so far approved 3 trains, which comprise phase 1, out of 8 planned for the project.

“The Rio Grande LNG Facility continues to attract outstanding LNG customers, which we believe is a testament to the quality of our project”, NextDecade chair and chief executive Matt Schatzman said in a company statement announcing the Aramco deal.

Under the agreement with Aramco, a subsidiary of the state-owned oil giant will receive the LNG free on board at a price indexed to the Henry Hub benchmark.

Last month NextDecade said it has contracted Houston-based Baker Hughes Co. for the latter to provide its gas turbine and refrigerant compressor technology for trains 4-8.

Baker Hughes has already been contracted to supply refrigerant compressors and gas turbines for the 3-train phase 1. Phase 1, under construction by Bechtel Energy Inc., will have a total nameplate capacity of about 18 MMtpa.

“NextDecade is making excellent progress on commercializing Rio Grande LNG Trains 4 and 5”, said a press release by NextDecade and Baker Hughes March 11.

“The Company expects to make positive final investment decisions and commence construction on Trains 4 and 5 and related infrastructure at the Rio Grande LNG Facility, subject to, among other things, maintaining requisite governmental approvals, finalizing and entering into EPC [engineering, procurement and construction] contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure”, the release said.

“NextDecade is developing and beginning the permitting process for Trains 6 through 8”, it added.

Only trains 1-5 have the required approvals from United States authorities. NextDecade has farmed out stakes in the first three trains and these partners have options to invest in trains 4 and 5. Trains 6-8 are wholly owned by NextDecade, according to a business update by the company February 28.

It said in that update, “We plan to pre-file an application with the Federal Regulatory Energy Commission (FERC) for Train 6 this year”. NextDecade expects a complete FERC application for train 6 early 2026.

“Trains 7 and 8 are being developed on the site outside of the existing levee”, it said. “Additionally, we expect to explore options for the development of up to two additional trains at our site beyond Train 8”.

On July 12, 2023, NextDecade announced a positive FID on phase 1, earmarking $18.4 billion then. The project had been planned to have a carbon capture component. However, NextDecade said August 20, 2024, it had withdrawn its permit application to build the emission mitigation component.

At full operation Rio Grande LNG’s capacity would be enough to heat and cool the equivalent of nearly 34 million households yearly, according to a factsheet published online by NextDecade.

Rio Grande LNG has secured a permit to export to countries with no free trade agreement (FTA) with the U.S. through 2050, extended from an earlier 20-year authorization, according to a decision by the Department of Energy (DOE) October 21, 2020. The authorization requires Rio Grande LNG to start export February 2027.

Rio Grande LNG also holds a 30-year authorization to export to nations with an FTA with the U.S., according to a DOE decision issued August 17, 2016.

However, on August 6, 2024, the Court of Appeals for the D.C. Circuit vacated the FERC’s permit for Rio Grande LNG because the commission had not issued a supplemental Environmental Impact Statement in reauthorizing the project, according to NextDecade.

On March 18, 2025, NextDecade said the court revised its August 2024 ruling and remanded without vacatur the FERC’s order for the first five liquefaction trains.

“We are pleased with today’s revised Court judgment, which ensures construction at the Rio Grande LNG Facility will not be impacted by the Court”, Schatzman said.

“We look forward to continuing our work with FERC through the reauthorization process for our project”, the chief executive added.

To contact the author, email [email protected]

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