In July 2023, NextDecade took the final investment decision on the first three Rio Grande trains and completed $18.4 billion project financing.
NextDecade awarded the $12 billion EPC contract to compatriot Bechtel and it officially kicked of work on the plant in October last year.
The firm also closed a joint venture agreement for the first phase which included about $5.9 billion of financial commitments from Global Infrastructure Partners (GIP), GIC, Mubadala, and TotalEnergies.
NextDecade holds equity interests in the Phase 1 joint venture that entitle it to receive up to 20.8 percent of the distributions of available cash during operations.
Phase 1, with nameplate liquefaction capacity of 17.6 mtpa, has 16.2 mtpa of long-term binding LNG sale and purchase agreements.
These include deals with TotalEnergies, Shell, ENN, Engie, ExxonMobil, Guangdong Energy Group, China Gas Hongda Energy Trading, Galp, and also Itochu.
Including trains 4 and 5, the Rio Grande LNG facility would have a capacity of 27 mtpa.
Besides three liquefaction trains, the first phase includes building two 180,000-cbm full containment LNG storage tanks, and two jetty berthing structures designed to load LNG carriers up to 216,000 cbm in capacity.
Phase 1 also includes associated site infrastructure and common facilities including feed gas pretreatment facilities, electric and water utilities, two totally enclosed ground flares for the LNG tanks and marine facilities, etc.
According to Rio Grande LNG’s September construction report sent to the US FERC, the project completed concrete placement for LNG Tank 1 wall outer ring foundation and land-based pile driving and concrete placement for mooring and breasting dolphins at Jetty 2.
The project started concrete placement for the 290R cryo rack within Train 2, LNG Tank 1 inner concrete foundation, and LNG Tank 2 wall outer ring foundation.
LNG Tank 1 ring foundation (Image: NextDecade)
Rio Grande LNG also started installation of carbon steel liner for LNG Tank 1, land-based pile-driving for mooring dolphins in Jetty 1, and formwork, rebar installation, and civil activities for ground flares.
Ongoing construction activities during the reporting period include land-based construction of Jetties 1 and 2, underground firewater piping installation and testing, and structural steel erection and LNG spill trench placement within Train 1.
Simultaneously, the project maintains continuous monitoring and maintenance of existing erosion control devices, where accessible.
In October, Rio Grande LNG plans to complete LNG Tank 1 inner concrete foundation and LNG Tank 2 wall outer ring foundation.
It also aims to start concrete placement for LNG Tank 1 walls and erect structural steel for OSBL 870R pipe rack.
NextDecade’s CEO Matt Schatzman said in August the company is committed to taking all available legal and regulatory actions to ensure that the first phase of its Rio Grande LNG project will be delivered on time and budget and that FID of trains 4 and 5 will not be unduly delayed.
NextDecade said that construction continues on the first phase of its Rio Grande LNG export terminal despite a ruling by a US court.
The US Court of Appeals for the D.C. Circuit on August 6 issued an order vacating the Federal Energy Regulatory Commission’s remand authorization of NextDecade’s Rio Grande LNG facility on the grounds that the FERC should have issued a supplemental environmental impact statement (EIS) during its remand process.
“We do not agree with the D.C. Circuit Court’s recent decision to vacate the FERC’s remand authorization of the Rio Grande LNG facility,” Schatzman said.
According to NextDecade, the Court’s decision will not be effective until the court has issued its mandate, which is not expected to occur until the appeals process has been completed.
The company is reviewing the Court’s decision and assessing all of its options, together with the key project constituencies, including its equity partners and lenders.
NextDecade expects to take all available legal and regulatory actions, including but not limited to, appellate actions and other strategies.
Last month, the FERC said it will prepare a supplemental environmental impact statement for NextDecade’s Rio Grande LNG project.
“On remand, the Commission will consider whether to grant a Natural Gas Act (NGA) section 3(a) authorization for the Rio Grande LNG terminal and an NGA section 7(c) certificate of public convenience and necessity for the Rio Bravo pipeline project,” the FERC said in a filing dated September 13.
The regulator said it must determine whether to authorize the projects under the NGA, taking into consideration the factors discussed in the court’s decision.
According to the FERC, the supplemental EIS will “tier off Commission staff’s analysis and conclusions as documented in staff’s April 26, 2019 final EIS for the projects.”
The supplemental EIS will focus on the issues identified by the court as requiring further analyses (e.g., environmental justice impacts, air quality, and alternatives).
“The Commission will use this supplemental EIS in its decision-making process to determine whether to authorize the Rio Grande LNG and Rio Bravo pipeline projects in light of the court’s vacatur and remand,” it said.
The regulator expects to issue notice of availability of the final supplemental EIS on July 31, 2025, and to issue final order on November 20, 2025.
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