NextDecade has pushed back its final investment decision on the proposed Rio Grande LNG facility, to be located at the port of Brownsville, Texas, until the second half of 2022.
The company announced its decision in an investor presentation posted on its website.
The facility, which would be the southernmost liquefied natural gas facility in the US, is currently estimated to be a $15.7 billion project which would produce 27 million tons of LNG per annum from five trains at full capacity. The FID would be for significantly less – for two trains producing 11 mtpa.
To date, NextDecade has yet to clinch the number and volume of contracts needed for investment in Rio Grande LNG to proceed.
The company has reached a 20-year agreement with Shell to provide the company with 2 mtpa.
The company said in its presentation that “negotiations are advancing” with potential customers in both Asia and Europe but gave no specifics.
NextDecade claims that Rio Grande LNG would be one of the lowest cost US Gulf Coast greenfield LNG projects built, and has a “turn-key, lump sum” contract in place with Bechtel for the engineering, procurement and construction of the facility.
Air Products, Baker Hughes and ABB are other contractors currently involved with the project.
While US-exported LNG has been in significant demand worldwide, the costly projects have faced significant obstacles from regulators, environmental groups and a lack of funding.
Two US-based projects, Jordan Cove in Oregon and Annova LNG – also planned to be built in Brownsville – were scrapped in 2021.
For more information visit www.next-decade.com
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