NextDecade Company stated its subsidiaries have finalized a pricing refresh of the corporate’s lump-sum, turnkey engineering, procurement and building (EPC) contract with Bechtel Power Inc. for the development of Practice 4 and associated infrastructure on the Rio Grande LNG facility in Brownsville, Texas.
NextDecade additionally entered right into a lump-sum, turnkey EPC contract with Bechtel for the development of Practice 5 and associated infrastructure on the Rio Grande LNG facility, the corporate stated in a information launch.
The corporate’s subsidiary Rio Grande LNG Practice 4 LLC has agreed to pay Bechtel roughly $4.77 billion for the work beneath the EPC contract for Practice 4, with pricing validity extending by September 15, in accordance with the discharge.
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NextDecade stated it anticipates that proprietor’s prices, contingencies, financing charges and curiosity throughout building will complete roughly $1.8 billion to $2.0 billion for Practice 4 and supporting infrastructure, primarily based on present estimates and anticipated rates of interest.
Additional, Rio Grande LNG Practice 5 LLC has agreed to pay Bechtel roughly $4.32 billion for the work beneath the EPC contract for Practice 5, with pricing validity additionally extending by September 15.
For Practice 5, NextDecade stated it tasks that proprietor’s prices, contingencies, financing charges and curiosity throughout building will complete about $1.8 billion to $2.0 billion for Practice 5 and supporting infrastructure, primarily based on present estimates and anticipated rates of interest.
With the commercialization of Practice 4 full, the corporate stated it has began the financing course of for Practice 4 and associated infrastructure. Topic to acquiring satisfactory financing, NextDecade expects to attain a optimistic monetary funding resolution (FID) on Practice 4 earlier than the top of the pricing validity interval for its EPC contract.
NextDecade not too long ago introduced a 20-year liquefied pure fuel (LNG) sale and buy settlement (SPA) with JERA 2.0 for two million metric tons every year (mtpa) for offtake from Practice 5. The corporate stated it’s engaged on commercializing a further 2.5 mtpa beneath long-term LNG SPAs to assist a optimistic FID on Practice 5.
The corporate stated it has began the financing course of for Practice 5 and associated infrastructure and, topic to acquiring acceptable business assist and financing, is focusing on FID earlier than the top of the pricing validity interval for its EPC contract.
NextDecade is establishing and growing the Rio Grande LNG facility on the north shore of the Brownsville Ship Channel in south Texas. The location is situated on 984 acres of land which has been leased long-term and contains 15,000 toes of frontage on the Brownsville Ship Channel, in accordance with an earlier assertion.
The corporate stated it believes the location is “advantaged resulting from its proximity to considerable pure fuel sources within the Permian Basin and Eagle Ford Shale, entry to an uncongested waterway for vessel loading, and placement in a area that has traditionally been topic to fewer and fewer extreme climate occasions relative to different places alongside the U.S. Gulf Coast.”
The power has been permitted by the Federal Power Regulatory Fee (FERC) and approved by the U.S. Division of Power to export of as much as 27 mtpa of LNG. Section 1 of the ability is beneath building, and the corporate stated it’s growing and starting the allowing course of for Trains 6 by 8.
The corporate is growing and starting the allowing course of for extra liquefaction capability on the Rio Grande LNG Facility web site past Trains 1 by 5. Trains 6 by 8 are wholly owned by NextDecade and are cumulatively anticipated to extend its complete liquefaction capability by roughly 18 MTPA as soon as constructed and positioned into operation, in accordance with the assertion.
Practice 6 is being developed inside the present levee on the Rio Grande LNG facility web site and adjoining to Trains 1 by 5, the corporate stated, including that it expects to pre-file an software with FERC for Practice 6 inside the yr and a full software with FERC in early 2026. Trains 7 and eight are being developed on the location outdoors of the present levee, the corporate famous.
To contact the creator, electronic mail rocky.teodoro@rigzone.com
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