By:Arabictrader

Next Decade, an American company specializing in liquefied natural gas (LNG) projects, has entered into a long-term agreement with a subsidiary of Saudi Aramco to supply LNG for 20 years from its "Rio Grande" facility. This move enhances its growing presence in the global LNG market, according to a report by Reuters.

Under the terms of the agreement, the Aramco subsidiary will purchase 1.2 million tons of LNG annually from the fourth liquefaction unit at the "Rio Grande" facility located in Texas, USA. The first phase of this project, which is considered one of the largest gas export projects in the United States, is expected to be completed by early 2027, at an estimated total cost of around $18 billion.

This deal is part of Aramco's efforts to expand its presence in the global LNG market, as the company seeks to diversify its energy portfolio and strengthen its position as a global energy provider, not only in oil but also in clean and renewable energy sources. 

The parties had previously signed a non-binding agreement in June 2024 as a preliminary step toward finalizing the deal, reflecting ongoing progress in Aramco's strategic plans to strongly enter the global gas sector.

It is worth noting that Saudi Aramco recently signed a preliminary agreement in June with the American company Sempra to acquire 5 million tons annually of LNG from the second phase expansion project at "Port Arthur," as part of its accelerated efforts to develop its gas assets.