NextDecade Corp has secured a 3rd purchaser for the deliberate fifth prepare of the under-construction Rio Grane LNG after ConocoPhillips signed up for a million metric tons every year (MMtpa) over 20 years.
“NextDecade has now introduced a complete of 4.5 MMtpa of LNG from prepare V bought underneath 20-year LNG SPAs [sale and purchase agreements], which it believes is enough to assist a constructive FID on prepare V”, the Houston, Texas-based LNG developer mentioned in a press release on its web site.
Topic to securing financing, NextDecade expects to succeed in a constructive remaining funding resolution (FID) within the fourth quarter.
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The availability for ConocoPhillips shall be delivered on a free on board foundation at a value listed to Henry Hub.
“We’re excited to assist transfer this mission nearer to FID whereas advancing our international LNG portfolio technique and 10 to fifteen MMtpa offtake ambition”, ConocoPhillips chief business officer Khoa Dao mentioned in a separate assertion. “We proceed to construct scale and diversification, including provide and gross sales factors providing additional optionality for optimization”.
Simply final month ConocoPhillips mentioned it had signed an settlement to purchase 4 MMtpa over 20 years from Sempra’s Port Arthur LNG section II mission in Jefferson County, Texas. ConocoPhillips had already dedicated to 5 MMtpa over 20 years from the under-construction section I, from which it has additionally agreed to accumulate a 30 p.c fairness stake.
For Rio Grande LNG prepare V, the opposite two offtakers are Japan’s JERA Co Inc (as much as two MMtpa) and Pittsburgh, Pennsylvania-based EQT Corp (1.5 MMtpa).
NextDecade expects to make a FID earlier than the expiry of a newly revised value validity interval for the engineering, procurement and building contract it had awarded to Bechtel Power Inc. The value validity interval has been prolonged to November 15.
NextDecade presently expects complete prices for Rio Grande LNG prepare V and associated infrastructure to succeed in round $6.7 billion.
“Topic to acquiring sufficient financing, NextDecade additionally continues to count on to realize a constructive FID on Rio Grande LNG prepare IV by September 15, 2025”, NextDecade mentioned. Practice IV had already accomplished “commercialization”.
Rio Grande LNG’s section I, which consists of trains I to III, is underneath building. NextDecade introduced a FID on section I in July 2023, earmarking $18.4 billion then. The mission had been deliberate to have a carbon seize element. Nonetheless, NextDecade mentioned August 2024 it had withdrawn its allow software to construct the emissions mitigation element.
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 ft a yr of pure fuel equal, or 27 MMtpa of LNG in keeping with NextDecade, to FTA and non-FTA nations till 2050. DOE granted authorization by means of orders first issued – later amended – August 2016 for the portion for nations 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 influence assertion (SEIS) for Rio Grande LNG and the related pipeline mission owned by Enbridge Inc.
FERC’s ongoing assessment consists of 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 ft 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 Court docket of Appeals for the District of Columbia Circuit, issued August 2024, of FERC’s reauthorization of the initiatives. Within the August 2024 order the courtroom 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 courtroom’s second remand for the mission.
In March 2025 the courtroom 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 writer, e-mail jov.onsat@rigzone.com
