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NextDecade: FID for Rio Grande LNG expansion still in play
The company says it is planning to take a final investment decision (FID) and start construction on the fourth liquefaction train in the second half of 2024
A quarterly earnings report from the Houston, Texas-headquartered American company NextDecade said it would "continue progressing toward FID of Train 4, which is well underway".
NextDecade said it is targeting FID and commencing construction of Train 4 and related infrastructure at the Rio Grande LNG Facility in the second half of 2024, "and subsequently Train 5 and related infrastructure".
"Achieving a positive FID of this fully permitted expansion capacity at the Rio Grande LNG Facility will be subject to, among other things, finalising and entering into EPC contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure," the company said.
NextDecade chairman and chief executive Matt Schatzman said, "We are focused on constructing Phase 1 at the Rio Grande LNG Facility safely, on time, and on budget, and delivering a positive FID of our fully permitted expansion capacity to meet growing global demand for cleaner energy sources including LNG."
NextDecade is developing the Rio Grande LNG Facility on the north shore of the Brownsville Ship Channel in south Texas through its partially owned subsidiary Rio Grande LNG. According to the company, the Rio Grande LNG facility has received the necessary approvals and authorisations required for construction, "including those from the Federal Energy Regulatory Commission and the Department of Energy, which allow for development, construction and operation of up to five trains and 27M tonnes per annum (mta) of LNG exports".
Trains 1 and 2 at the facility have just begun the construction phase, but no construction is yet underway on Train 3, according to NextDecade. All three trains are on schedule, the company said.
In addition to handing out engineering, procurement and construction contracts in 2023, NextDecade secured a US$356M loan in September 2023 to finance part of Phase 1 of its project, encompassing the first three LNG trains.
As of July 2023, NextDecade reported selling 16.2 mta of LNG from Phase 1 of the project. LNG carrier owner Dynagas has locked in time charters for its 155,000-m3 Arctic Aurora and 150,000-m3 Clean Energy to the Rio Grande LNG project.
The export facility is targeting a commercial start-up in 2027.
Phase 1 includes three liquefaction trains with a total nameplate capacity of 17.61 mta of LNG production, two 180,000-m3 full containment LNG storage tanks, and two jetty berthing structures designed to load LNG carriers up to 216,000 m3 in capacity.
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