NextDecade gets OK from US FERC for Rio Grande LNG

The US Federal Energy Regulatory Commission (FERC) has reaffirmed its approval for NextDecade’s proposed Rio Grande LNG export terminal in Texas.

Three of FERC’s commissioners voted on April 20 during a meeting to approve the project and the Rio Bravo pipeline, with one commissioner dissenting, according to a filling.

The decision came 20 months after the US Court of Appeals for the District of Columbia Circuit remanded FERCs original project authorizations from 2019.

“We continue to find that the projects, as conditioned in the authorization order and as modified herein, are environmentally acceptable actions. We continue to support our previous findings of the benefits of these projects,” the filling said.

Furthermore, “we find that the Rio Grande LNG terminal is not inconsistent with the public interest and that the Rio Bravo Pipeline Project, as amended, is required by the public convenience and necessity, as conditioned in the authorization order and as modified herein,” it said.

FID in Q2?

NextDecade sent a letter to the FERC on February 6 over delays in reviewing information in order to eliminate any regulatory uncertainty surrounding the Rio Grande LNG project.

It is expecting to take a final investment decision on the first three trains before the end of the second quarter.

The company has two lump-sum turnkey EPC contracts with Bechtel for the LNG export project for the first three trains. The full project would include five trains with a capacity of 27 mtpa.

The first deal is for two LNG trains with a capacity of some 11.74 mtpa, two 180,000-cbm tanks, and one marine loading berth, while the second deal is for one LNG train with a capacity of 5.87 mtpa.

Prior to FID, NextDecade issued a limited notice to proceed to Bechtel last year to begin ramping up its personnel and initiate site preparation work at the Rio Grande LNG site.

Early works on the site include deep soil mixing, land clearing at test pile locations, onsite surveys, etc.

NextDecade has executed eight long-term sale and purchase agreements for a total of nearly 11 mtpa of US LNG, with substantial volumes dedicated for Europe, it previously said.

Texas LNG and Driftwood pipeline

Besides Rio Grande LNG, FERC also approved Glenfarne’s Texas LNG project, it said in a separate filling.

Last year, the developer of the 4 mtpa plant appointed a joint venture of Technip Energies USA and Samsung Engineering to lead the delivery of the facility.

Texas LNG said at the time it expected to achieve a final investment decision in 2022 and start commercial operations in 2026.

The firm did not provide any updates lately.

In addition to Rio Grande LNG and Texas LNG, the FERC also approved Driftwood Pipeline’s Line 200 and 300 projects in Louisiana.

The pipelines would deliver up to 5.7 million Dth/d to Tellurian’s Driftwood LNG project in Louisiana.

Tellurian’s co-founder and executive chairman, Charif Souki, recently said he is “highly confident” that the company will secure $7 billion from banks to finance the first phase of its Driftwood LNG export project.

Under the first phase, Tellurian aims to build two LNG plants near Lake Charles with an export capacity of up to 11 mtpa and expects the costs to reach up to $13.6 billion.

While Tellurian is working on financing of the project, US engineer and construction giant Bechtel is moving forward with the initial site works under a limited notice to proceed issued in March last year.

Most Popular

Cheniere to start site preparation for two more Corpus Christi LNG trains

US LNG exporting giant Cheniere is seeking approval from the US FERC to start site preparation activities for two more midscale trains at its Corpus Christi LNG plant in Texas.

Amigo LNG, Sahara seal 20-year SPA

Amigo LNG, a unit of LNG Alliance, has signed a 20-year sales and purchase agreement with Sahara Group to supply the latter with liquefied natural gas from its planned 7.8 mtpa LNG export plant in Mexico.

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

More News Like This

Woodside, Uniper ink Louisiana LNG supply deal

Australia's Woodside has signed LNG sale and purchase agreements with Germany's Uniper to supply the latter from its planned Louisiana LNG project and its global portfolio.

Woodside names Sarah Bairstow as Louisiana LNG head

Australian LNG player Woodside has appointed Sarah Bairstow to lead its Louisiana LNG project.

NextDecade, TotalEnergies seal 20-year LNG SPA

French energy giant TotalEnergies has exercised its option to buy liquefied natural gas (LNG) from the planned fourth train at NextDecade's Rio Grande LNG facility in Texas.

NextDecade, Aramco seal 20-year LNG SPA

Saudi Arabia’s energy behemoth Aramco has signed a 20-year deal to buy liquefied natural gas from NextDecade’s Rio Grande LNG export terminal in Texas.