As development of the primary part will get underway in South Texas close to the Mexico border, NextDecade Corp. is seeking to finalize plans by mid-2024 to broaden its Rio Grande LNG export challenge.
The Houston-based agency broke floor in Brownsville on the primary three trains of the ability final month, which may add 17.6 million metric tons/12 months (mmty) of export capability to the worldwide market by 2027. NextDecade reached a closing funding determination (FID) on Rio Grande LNG in July after securing $18.4 billion in financing, making it one of the vital costly U.S. greenfield power tasks up to now.
In a 3rd quarter enterprise replace, the agency famous that it had already began the method of front-end engineering and design (FEED) and securing engineering procurement and development (EPC) for a fourth prepare with Bechtel Corp., its EPC contractor on the primary part.
“We’re additionally targeted on commercializing and attaining a constructive FID for Practice 4 within the second half of 2024, and subsequently progressing Practice 5,” CEO Matt Schatzman stated. “We count on these FERC authorized expansions to profit from our Section 1 fairness companions’ choices to take part in Practice 4 and Practice 5, and TotalEnergies’ LNG offtake choices” for 1.5 mmty per prepare.
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TotalEnergies netted its choices for future volumes in June when it agreed to a 5.4 mmty offtake and 16.67% fairness deal for Rio Grande’s first part. If the French main had been to tug the set off on further offtake, NextDecade estimates it must contract a further 3 mmty earlier than reaching FID on every successive prepare.
NextDecade additionally has gross sales and buy agreements for the primary part with eight different firms, together with majors ExxonMobil and Shell plc.
The challenge has continued to face regulatory and authorized challenges from environmental teams regardless of the Federal Vitality Regulatory Fee’s determination to reapprove its authorizations earlier within the 12 months. In August 2021, a federal appeals court docket remanded the authorization determination and its associated pipeline challenge, the Rio Bravo system, again to FERC.
In a not too long ago printed environmental evaluation (EA), FERC employees concluded the modification to Rio Bravo’s path would permit the system to be constructed with out main environmental impacts.
In 2020, main midstreamer Enbridge Inc. purchased NextDecade’s pipeline subsidiary with plans to construct and function the 4.5 Bcf/d system meant to feed Rio Grande. The 137-mile Rio Bravo system would consist of dual 42-inch diameter pipelines and run from the Agua Dulce provide hub close to Corpus Christi to the liquefaction facility.
In July, Enbridge submitted to FERC an modification to the pipeline’s path it stated would decrease impacts to the habitat of the endangered ocelot and tackle native landowner issues.
In its EA, FERC employees wrote the route “would additionally consequence within the pipeline affecting fewer wetlands, forest lands and prime farmland soils.”
Feedback on the EA are being taken till Dec. 14.
The put up NextDecade Targets 2024 to Sanction Rio Grande LNG Enlargement appeared first on Pure Fuel Intelligence