NextDecade updates on Rio Grande LNG site preparation work

US LNG terminal developer NextDecade and compatriot engineering and construction giant Bechtel are moving forward with early work to prepare the Rio Grande site located in the Port of Brownsville, Texas.

NextDecade is targeting a positive final investment decision (FID) on the first three trains of the Rio Grande LNG export project during the first quarter of 2023, with FIDs of its remaining trains to follow thereafter.

The full project would include five trains with a capacity of 27 mtpa.

NextDecade recently 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 US LNG firm has lump-sum turnkey EPC contracts with Bechtel for the LNG export project.

In September last year, NextDecade and Bechtel amended each of the Trains 1 and 2 EPC agreement and the Train 3 EPC deal.

The firm estimates the lump-sum EPC cost for the first three trains to reach at least $11.4 billion, but this will probably be higher.

NextDecade and Bechtel progress Rio Grande LNG early work
Preparation of test pile area ST-3 (Image: NextDecade)

Preparation work

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.

According to a monthly construction reported filed with the US FERC, the focus in January was to continue the deep material mixing (DMM) testing program at pad #1 (DPPT‐1) and pad #2 (DPPT‐2).

Testing activities related to DMM included deep soil mixing, core sampling and reaction beam fabrication/installation to support future DMM load testing, NextDecade said.

Other activities for the month included temporary land clearing at test pile locations, onsite surveys, stockpiling of topsoil, chipping of organic materials, and the monitoring of
environmental controls.

For the month of February, the DMM testing program at DPPT‐1 and DPPT‐2 will continue.

Most of the ongoing effort will focus on DMM reaction test beam installations to support DMM load testing, the report said.

- Advertisements -

Most Popular

Perenco takes stake in Golar LNG

London-based oil and gas firm Perenco has purchased a stake in floating LNG player Golar LNG. According to a SEC...

Singapore LNG bunkering volumes hit new record

Singapore’s liquefied natural gas (LNG) bunkering sales reached a new record in May, according to Singapore’s Maritime and Port...

Singapore’s Temasek says to sell Pavilion to Shell

Singapore's investment firm Temasek said it had agreed to sell 100 percent of its shares in Pavilion Energy to...

More News Like This

South Korea’s Hanwha to increase stake in NextDecade

South Korean conglomerate Hanwha has agreed to buy more shares in US LNG firm NextDecade to increase its stake...

Aramco, NextDecade pen non-binding Rio Grande LNG deal

Saudi Arabia’s energy behemoth Aramco has signed a non-binding deal to buy liquefied natural gas from NextDecade's Rio Grande...

Adnoc buys stake in NextDecade’s Rio Grande LNG project

UAE’s Adnoc has purchased an 11.7 percent stake in the first phase of NextDecade's Rio Grande LNG export terminal...

NextDecade: Rio Grande LNG work progresses

US LNG firm NextDecade is moving forward with construction work on the first phase of its Rio Grande LNG...