NextDecade targeting Rio Grande LNG FID by end of second quarter

US LNG terminal developer NextDecade is now expecting to take a final investment decision on the first three trains of its Rio Grande LNG export project in Texas before the end of the second quarter.

“NextDecade is currently targeting a positive FID on Trains 1-3 of the Rio Grande facility before the end of the second quarter of 2023, with FIDs of the remaining trains to follow thereafter,” the firm said in a filling with the US SEC.

The LNG firm previously said it expected to sanction the project during the first quarter of this year.

EPC deals

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.

NextDecade issued a limited notices 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.

In September last year, NextDecade and Bechtel also amended each of the Trains 1 and 2 EPC agreement and the Train 3 EPC deal to give effect to certain updated lump-sum, separated contract pricing components.

The price validity under the EPC agreements with Bechtel expired on March 15.

However, NextDecade’s Rio Grande LNG and Bechtel Energy amended the deals on Wednesday to extend the price validity under such agreements to June 15, 2023, NextDecade said in the SEC filling.

NextDecade currently estimates the aggregate lump-sum EPC cost to construct Trains 1-3 of the Rio Grande Facility at about $11.5 billion.

The company said that the final EPC lump-sum contract pricing for Trains 1-3 of the Rio Grande facility will be determined prior to FID.

Also, the price “is subject to change, including if Rio Grande LNG does not issue a full notice to proceed to Bechtel on or before June 15, 2023, unless extended by mutual agreement of the parties thereto,” it said.

Supply deals

In January, NextDecade signed a supply deal for the Rio Grande project with Itochu, the company’s first LNG customer from Japan.

Besides this contract, NextDecade signed deals with Portugal’s Galp, compatriot ExxonMobil, China’s ENN, Guangdong Energy, China Gas, and France’s Engie.

The firm 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.

Last month, it also sold shares and sent a letter to the US FERC on February 6 due to delays over reviewing information regarding the Rio Grande LNG project.

Most Popular

Venture Global wins Calcasieu Pass arbitration against Shell

US LNG exporter Venture Global LNG has won an arbitration case against UK-based LNG giant Shell over LNG sales from the Calcasieu Pass plant in Louisiana.

AG&P LNG inks offtake MoU for Australian LNG import project

Nebula Energy’s AG&P LNG said it had signed a memorandum of understanding with an Australian integrated energy provider under which the latter may become a significant offtaker of the proposed Outer Harbor LNG terminal in South Australia.

Excelerate working to expand Jamaican LNG business

US FSRU player Excelerate Energy has already made some smaller investments to further optimize its recently acquired LNG business in Jamaica, according to CEO Steven Kobos.

More News Like This

NextDecade secures equity commitments for fourth Rio Grande LNG train

US LNG firm NextDecade has secured up to $1.8 billion in equity commitments from TotalEnergies and Global Infrastructure Partners to finance the construction of the fourth train at its Rio Grande LNG facility in Texas.

NextDecade plans to decide on two Rio Grande LNG trains in September

US LNG firm NextDecade plans to take final investment decisions to build the fourth and fifth trains at the Rio Grande LNG facility in Texas in September.

US FERC issues final SEIS for NextDecade’s Rio Grande LNG project

The US Federal Energy Regulatory Commission (FERC) has released a final supplemental environmental impact statement for NextDecade's Rio Grande LNG facility and the accompanying pipeline in Texas. FERC continues to conclude that approval of the projects would result in "less than significant impacts."

Great Lakes clinches Louisiana LNG dredging gig

US firm Great Lakes Dredge & Dock has secured a dredging contract from compatriot Bechtel for dredging work on Woodside's Louisiana LNG project.