NextDecade signed a 20-year LNG supply agreement with Saudi Aramco, resulting in a significant surge in its stock price
On Tuesday, at the beginning of the U.S. stock market, NextDecade rose over 15% after the company announced the signing of a 20-year liquefied natural gas purchase and sale agreement with a subsidiary of Saudi Aramco. According to the agreement, Saudi Aramco will purchase liquefied natural gas from NextDecade's Rio Grande LNG project in southern Texas's fourth production line. Under the terms of the agreement, Saudi Aramco will purchase 1.2 million tons of liquefied natural gas annually at an offshore price (FOB), with the purchase price linked to the Henry Hub natural gas benchmark price. The final execution of the agreement depends on the fourth production line obtaining a final investment decision. Earlier last month, the U.S. Federal Energy Regulatory Commission issued a preliminary decision supporting the environmental permit for the Rio Grande LNG project. It is reported that the company recently announced the expansion plan for the Rio Grande LNG project, including the initiation of the development and permitting process for the sixth to eighth production lines. If all are put into operation, these three new production lines will bring an annual liquefaction capacity of 18 million tons, increasing the total capacity of the Rio Grande LNG project to 48 million tons per year
According to Zhitong Finance APP, on Tuesday, in the early trading of U.S. stocks, NextDecade (NEXT.US) rose more than 15% after the company announced a 20-year liquefied natural gas (LNG) sales and purchase agreement with a subsidiary of Saudi Aramco. According to the agreement, Saudi Aramco will purchase LNG from NextDecade's Rio Grande LNG project in southern Texas's fourth production line.
Under the terms of the agreement, Saudi Aramco will purchase 1.2 million tons of LNG annually at an offshore price (FOB), with the purchase price linked to the Henry Hub natural gas benchmark price. The final execution of the agreement depends on the fourth production line obtaining a final investment decision.
Earlier last month, the U.S. Federal Energy Regulatory Commission issued a preliminary decision supporting the environmental permit for the Rio Grande LNG project.
It is reported that the company recently announced an expansion plan for the Rio Grande LNG project, including the initiation of development and permitting processes for the sixth to eighth production lines. If all are put into operation, these three new production lines will bring an additional liquefaction capacity of 18 million tons per year, increasing the total capacity of the Rio Grande LNG project to 48 million tons per year