NextDecade Corp. has secured a 20-year, 1.2 million metric tons each year (MMtpa) offtake from Saudi Arabian Oil Co. (Aramco) for the deliberate fourth liquefaction practice of the under-construction Rio Grande LNG undertaking in Brownsville, Texas.
Houston, Texas-based NextDecade is in search of buy commitments to have the ability to make an FID (remaining funding resolution) on trains 4 and 5. NextDecade has thus far authorized 3 trains, which comprise part 1, out of 8 deliberate for the undertaking.
“The Rio Grande LNG Facility continues to draw excellent LNG clients, which we consider is a testomony to the standard of our undertaking”, NextDecade chair and chief govt Matt Schatzman mentioned in an organization assertion asserting the Aramco deal.
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Below the settlement with Aramco, a subsidiary of the state-owned oil large will obtain the LNG free on board at a worth listed to the Henry Hub benchmark.
Final month NextDecade mentioned it has contracted Houston-based Baker Hughes Co. for the latter to supply its fuel turbine and refrigerant compressor expertise for trains 4-8.
Baker Hughes has already been contracted to produce refrigerant compressors and fuel generators for the 3-train part 1. Part 1, underneath development by Bechtel Power Inc., can have a complete nameplate capability of about 18 MMtpa.
“NextDecade is making glorious progress on commercializing Rio Grande LNG Trains 4 and 5”, mentioned a press launch by NextDecade and Baker Hughes March 11.
“The Firm expects to make optimistic remaining funding choices and start development on Trains 4 and 5 and associated infrastructure on the Rio Grande LNG Facility, topic to, amongst different issues, sustaining requisite governmental approvals, finalizing and getting into into EPC [engineering, procurement and construction] contracts, getting into into acceptable business preparations, and acquiring ample financing to assemble every practice and associated infrastructure”, the discharge mentioned.
“NextDecade is creating and starting the allowing course of for Trains 6 via 8”, it added.
Solely trains 1-5 have the required approvals from United States authorities. NextDecade has farmed out stakes within the first three trains and these companions have choices to spend money on trains 4 and 5. Trains 6-8 are wholly owned by NextDecade, in keeping with a enterprise replace by the corporate February 28.
It mentioned in that replace, “We plan to pre-file an software with the Federal Regulatory Power Fee (FERC) for Prepare 6 this 12 months”. NextDecade expects a whole FERC software for practice 6 early 2026.
“Trains 7 and eight are being developed on the location outdoors of the prevailing levee”, it mentioned. “Moreover, we count on to discover choices for the event of as much as two further trains at our web site past Prepare 8”.
On July 12, 2023, NextDecade introduced a optimistic FID on part 1, earmarking $18.4 billion then. The undertaking had been deliberate to have a carbon seize part. Nonetheless, NextDecade mentioned August 20, 2024, it had withdrawn its allow software to construct the emission mitigation part.
At full operation Rio Grande LNG’s capability can be sufficient to warmth and funky the equal of practically 34 million households yearly, in keeping with a factsheet revealed on-line by NextDecade.
Rio Grande LNG has secured a allow to export to international locations with no free commerce settlement (FTA) with the U.S. via 2050, prolonged from an earlier 20-year authorization, in keeping with a call by the Division of Power (DOE) October 21, 2020. The authorization requires Rio Grande LNG to begin export February 2027.
Rio Grande LNG additionally holds a 30-year authorization to export to nations with an FTA with the U.S., in keeping with a DOE resolution issued August 17, 2016.
Nonetheless, on August 6, 2024, the Court docket of Appeals for the D.C. Circuit vacated the FERC’s allow for Rio Grande LNG as a result of the fee had not issued a supplemental Environmental Impression Assertion in reauthorizing the undertaking, in keeping with NextDecade.
On March 18, 2025, NextDecade mentioned the court docket revised its August 2024 ruling and remanded with out vacatur the FERC’s order for the primary 5 liquefaction trains.
“We’re happy with immediately’s revised Court docket judgment, which ensures development on the Rio Grande LNG Facility is not going to be impacted by the Court docket”, Schatzman mentioned.
“We look ahead to persevering with our work with FERC via the reauthorization course of for our undertaking”, the chief govt added.
To contact the creator, electronic mail jov.onsat@rigzone.com
