NextDecade Corp. mentioned Wednesday it’s on observe to achieve a FID (remaining funding determination) this 12 months for Prepare V of the under-construction Rio Grande LNG after roping in a brand new liquefied pure fuel (LNG) purchaser in EQT Corp.
The Pittsburgh, Pennsylvania-based vertically built-in fuel firm signed an settlement to purchase 1.5 million metric tons each year (MMtpa) over 20 years from Prepare V.
“The settlement might be on a free-on-board foundation at a value listed to Henry Hub, topic to NextDecade making a optimistic FID on Prepare V”, EQT mentioned in a press release on its web site.
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EQT president and chief govt Toby Z. Rice mentioned, “The execution of this settlement represents continued momentum of EQT’s LNG technique, which is targeted on additional diversifying the corporate’s end-market publicity into the quickly rising world fuel markets and accelerating long-term earnings progress”.
“According to our present LNG offers, EQT will market and optimize its personal cargos, offering structuring flexibility and draw back safety”, Rice added.
NextDecade chair and chief govt Matt Schatzman mentioned, “The LNG we’re promoting from our venture to EQT will play a important function in enhancing the vitality safety of our allies around the globe”.
The Houston, Texas-based LNG developer mentioned in a separate assertion it has now secured patrons for 3.5 MMtpa from Prepare V. Earlier this 12 months Japan’s JERA Co. Inc. signed up for 2 MMtpa over 20 years.
NextDecade mentioned it’s trying to safe dedication for an extra one MMtpa “underneath a long-term sale and buy settlement to assist a optimistic FID on Prepare V”.
“The corporate expects to finish commercialization of Prepare V within the third quarter of 2025, and topic to acquiring satisfactory financing, NextDecade expects to realize a optimistic FID on Prepare V within the fourth quarter of 2025”, it mentioned.
NextDecade expects to make a FID earlier than the expiry of a newly revised value validity interval for the engineering, procurement and development contract it had awarded to Bechtel Power Inc. “NextDecade has additionally prolonged the worth validity interval underneath its lump-sum turnkey EPC contract with Bechtel Power Inc for Prepare V till November 15, 2025”, NextDecade mentioned.
“The overall prices for Rio Grande LNG Prepare 5 and associated infrastructure are anticipated to be roughly $6.7 billion”.
It added, “NextDecade additionally continues to anticipate to realize a optimistic FID on Rio Grande LNG Prepare IV by September 15, 2025, topic to acquiring satisfactory financing”. Prepare IV has already been absolutely subscribed in line with the corporate.
Rio Grande LNG’s Section I, which consists of Trains I to III, is underneath development. NextDecade introduced a FID on the primary section in July 2023, earmarking $18.4 billion then. The venture had been deliberate to have a carbon seize part. Nonetheless, NextDecade mentioned August 2024 it had withdrawn its allow utility to construct the emissions mitigation part.
Trains I to V every have a deliberate capability of 5.4 MMtpa. Rio Grande LNG holds a Division of Power (DOE) allow to export 1.32 trillion cubic toes a 12 months of pure fuel equal, or 27 MMtpa of LNG in line with NextDecade, to FTA and non-FTA international locations till 2050. DOE granted authorization by orders first issued – later amended – August 2016 for the portion for international locations with a free commerce settlement (FTA) with the U.S. and February 2020 for the non-FTA portion.
Final July the Federal Power Regulatory Fee (FERC) mentioned it had issued a remaining supplemental environmental impression assertion (SEIS) for Rio Grande LNG and the related pipeline venture owned by Enbridge Inc.
FERC’s ongoing evaluation contains the primary 5 of eight liquefaction trains deliberate for Rio Grande LNG.
In the meantime the Rio Bravo Pipeline is designed to hold as much as 4.5 billion cubic toes a day of fuel from the Agua Dulce provide space to the liquefaction facility.
The brand new SEIS is in response to a remand by the Courtroom of Appeals for the District of Columbia Circuit, issued August 2024, of FERC’s reauthorization of the initiatives. Within the August 2024 order the court docket vacated FERC’s authorization issued April 2023 as a result of the fee had not issued a supplemental EIS. The August 2024 ruling was the court docket’s second remand for the venture.
In March 2025 the court docket revised its August 2024 ruling and issued a remand with out vacatur.
In a press release concerning the new SEIS, NextDecade mentioned August 1, “FERC anticipates issuing a remaining order on the remand by November 20, 2025”.
To contact the creator, e mail jov.onsat@rigzone.com
