NextDecade expects Rio Grande LNG FID in second half of 2022

US liquefaction plant developer NextDecade now expects to take a final investment decision to build its proposed Rio Grande LNG export plant in Texas in the second half of 2022.

This means that NextDecade delayed the FID for more than six months as it previously said it had expected to take the decision by the end of 2021.

NextDecade first plans to build two liquefaction trains with a capacity of 11 million tonnes per year. The full project would include five trains with a capacity of 27 mtpa.

However, the firm currently has only a 20-year deal with Shell for 2 mtpa of supplies from the proposed Rio Grande plant.

The company is working to sign new deals with a duration of 10-20 years after it plans to work on the project’s financing, according to NextDecade’s newest investor presentation released on Monday.

NextDecade said SPA negotiations were “advancing with multiple counterparties in Europe and Asia” but it did not provide any additional information.

Bechtel contract

The LNG developer has lump-sum turnkey EPC contracts with engineering giant Bechtel.

Also, the duo completed a pricing refresh in March last year and they expect EPC costs for the first two trains, along with two 180,000-cbm tanks and a jetty, to reach about $7.5 billion. The other three trains and associated infrastructure would cost about $10 billion.

All five trains would use Air Products’ C3MR technology and Baker Hughes’ rotating equipment.

Prior to FID, the partners would need to work on the final EPC contract pricing as the current pricing had expired on December 31, 2021, NextDecade said.

Carbon capture

Last year, NextDecade also revealed plans for carbon capture from the LNG export plant.

The firm expects to capture and store more than five million metric tonnes of CO2 per year.

In November, NextDecade filed a limited amendment to its federal authorization with FERC for the LNG terminal that would allow it to voluntarily capture and store CO2 produced at the facility.

The firm said in the presentation it expects to receive approval from FERC for the CCS project in 2022.

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