NextDecade scraps plans for Galveston Bay LNG terminal

US liquefaction plant developer NextDecade is scrapping plans to build the Galveston Bay LNG terminal after it completed an evaluation of the proposed site in Texas City.

The Houston-based firm said in a statement it determined that the site is not suitable for development of an LNG facility and related infrastructure and utilities.

The US Army Corps of Engineers in Galveston told the firm that a portion of the Galveston Bay LNG site is under federal navigation servitude. The site serves as an active dredged material placement area for the Texas City ship channel federal project.

NextDecade says the Galveston Bay LNG project cannot be constructed without USACE requesting that Congress – via the water resources development act or other legislation – authorize the release of its constitutional right of navigation servitude over this DMPA.

On account of the potential for prolonged uncertainty around the prospect of release of federal navigation servitude by USACE, NextDecade has elected to forfeit the Galveston Bay LNG site and will no longer make lease payments to the site’s landholders, including Texas City, it said.

Additionally, NextDecade has informed the Federal Energy Regulatory Commission of its intent to withdraw Galveston Bay LNG from pre-filing proceedings and cease all related activities.

The company has also requested that the US Department of Energy terminate its June 2018 authorization for export of LNG from the project.

NextDecade planned to build three liquefaction trains with a production capacity of up to about 5.5 million tonnes per annum of LNG, each.

No impact on Rio Grande LNG as NextDecade targets FID this year

NextDecade says the circumstances of Galveston Bay LNG have no impact on its Rio Grande LNG project in the Port of Brownsville, where “late-stage development activities” are ongoing.

The project includes five trains for a total capacity of 27 million tonnes per year.

Moreover, the firm continues to work on remaining commercial agreements needed to achieve a final investment decision on the LNG project in 2021, it said.

“While it is unfortunate that the Galveston Bay LNG site is not viable for large-scale infrastructure development, this determination only further enhances the value of – and the need for – NextDecade’s world-class Rio Grande LNG project in the Port of Brownsville,” NextDecade chief Matt Schatzman, said.

He added that NextDecade continues to focus on delivering Rio Grande LNG, the “largest export solution linking Permian Basin and Eagle Ford Shale natural gas to the rapidly tightening global LNG market.”

Most Popular

NextDecade takes FID on fourth Rio Grande LNG train

US LNG firm NextDecade has made a final investment decision on the fourth train at its Rio Grande LNG facility in Texas.

Shell pens US LNG supply deal with Edison

UK-based LNG giant Shell has signed a long-term deal to supply US LNG to Italian energy firm Edison, a unit of EDF.

YPF CEO expects FIDs on FLNG projects with Eni, Shell in 2026

YPF CEO Horacio Marin confirmed on Wednesday that the state-owned oil and gas company and its partners Eni and Shell expect to take final investment decisions on two stages of the Argentina LNG project in 2026.

More News Like This

Shell pens US LNG supply deal with Edison

UK-based LNG giant Shell has signed a long-term deal to supply US LNG to Italian energy firm Edison, a unit of EDF.

NextDecade takes FID on fourth Rio Grande LNG train

US LNG firm NextDecade has made a final investment decision on the fourth train at its Rio Grande LNG facility in Texas.

NextDecade, ConocoPhillips seal 20-year Rio Grande LNG SPA

US energy giant ConocoPhillips has signed a deal with compatriot NextDecade to buy LNG from the planned fifth train at the latter's Rio Grande LNG facility in Texas. With this deal, NextDecade completed commercialization of Train 5.

NextDecade raises roof on first Rio Grande LNG tank

US LNG developer NextDecade and compatriot EPC contractor Bechtel have completed lifting the roof on the first storage tank as part of the first phase of the Rio Grande LNG export plant in Texas.