NextDecade Corporation ( NEXT ) shares are trading higher today. The company and Saudi Oil giant Aramco disclosed that their subsidiaries have signed a non-binding Heads of Agreement (HoA) for LNG project.

The deal entails a 20-year liquefied natural gas sale and purchase agreement (LNG SPA) to purchase LNG from Train 4 at the Rio Grande LNG Facility in the Port of Brownsville, Texas.

As per the terms, Aramco plans to buy 1.2 million tonnes per annum (MTPA) of LNG for 20 years on a free on board basis, with pricing indexed to Henry Hub.

Aramco and NextDecade ( NEXT ) are currently negotiating a binding agreement, which will become effective upon a positive Final Investment Decision on Train 4.

Related: Aramco In Discussions With Tellurian And NextDecade On LNG Projects: Report

Nasir K. Al-Naimi, president of Aramco Upstream, said, “We look forward to finalizing the terms of a long-term LNG offtake agreement with NextDecade ( NEXT ) as we explore opportunities to expand our presence in international energy markets. We expect LNG to play an important role in meeting the rising demand for secure and efficient energy.”

NextDecade ( NEXT ) aims to reach a Final Investment Decision (FID) for Train 4 in the second half of 2024, upon finalizing an engineering, procurement, and construction (EPC) contract, securing sufficient commercial backing, and obtaining financing.

Matt Schatzman, NextDecade ( NEXT ) Chairman and Chief Executive Officer, stated, “We are pleased to have reached a Heads of Agreement with Aramco for LNG from Train 4, as Aramco seeks to expand its LNG portfolio. We look forward to finalizing the LNG SPA with Aramco and to pursuing other opportunities together.”

Last month, Abu Dhabi Oil & Gas giant ADNOC announced it secured an equity position and LNG offtake agreement in NextDecade’s Rio Grande LNG project.

Investors can gain exposure to the stock via Listed Funds Trust Roundhill Alerian LNG ETF  and Exchange Traded Concepts Trust Range Global LNG Ecosystem Index ETF .

Price Action: NEXT shares are up 1.21% at $7.925 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.