NextDecade Announces FID for Rio Grande LNG Phase 1
Written by Carolina Worrell, Senior Editor
Texas-based energy company NextDecade Corporation (NextDecade) on July 12 announced that it has made a positive final investment decision (FID) for Phase 1 of its proposed Rio Grande liquefied natural gas (LNG) terminal, which consists of the construction of the first three liquefication trains, to be built at the Port of Brownsville.
According to NextDecade, at full scale, the 984-acre Rio Grande LNG facility will involve the liquefaction of natural gas and its export to foreign markets, providing “substantial economic advantages for the region, state and nation.” Construction of the facility alone, the company says, will generate more than 5,000 jobs in the region and is anticipated to provide a gross domestic product increase of $6 billion in Cameron County, $23 billion in Texas, and as much as $35 billion in the U.S.
Once fully operational, the Rio Grande LNG terminal will consist of five trains with the capacity to export 27 million metric ton per annum (MTPA). Phase 1, with nameplate liquefaction capacity of 17.6 MTPA, has 16.2 MTPA of long-term binding LNG sale and purchase agreements with TotalEnergies, Shell NA LNG LLC, ENN LNG Pte Ltd, Engie S.A., ExxonMobil LNG Asia Pacific, Guangdong Energy Group, China Gas Hongda Energy Trading Co., Galp Trading S.A. and Itochu Corporation. The project’s financing for Phase 1 is $18.4 billion.
The Port of Brownsville is served by Canadian Pacific Kansas City (CPKC), Union Pacific (UP) and BNSF, as well as the Brownsville & Rio Grande International Railway, LLC (BRG).
“The future of the Rio Grande Valley’s economy begins at the Port of Brownsville,” said Brownsville Navigation District Chairman Esteban Guerra. “On behalf of the port and our Brownsville Navigation District Board of Commissioners, we congratulate NextDecade on their final investment decision announcement for the development of the Rio Grande LNG facility. This dynamic project, the largest private infrastructure investment in the State of Texas, will provide good-paying jobs and economic growth to the region.”
“The Rio Grande LNG facility will be a true game-changer for our community, representing a generational achievement. Its impact will be enormous, significantly benefiting the energy industry of Texas,” said Port Director and CEO Eduardo A. Campirano. “This is a testament to our commitment in advancing the economic interests of our community for greater opportunities and a better quality of life.”
