Air Products secures work on NextDecade’s Rio Grande LNG project
Air Products secures work on NextDecade's Rio Grande LNG project - Offshore Energy
Air Products secures work on NextDecade’s Rio Grande LNG project
Industrial gases company Air Products has signed agreements to supply its proprietary LNG process technology and equipment to Rio Grande LNG Phase 1 Project being developed by NextDecade in Brownsville, Texas.
Air Products entered into agreements with Bechtel Energy Inc., an EPC contractor on the Rio Grande LNG project.
Phase 1, with a nameplate liquefaction capacity of 17.6 million tonnes per annum (mtpa), has 16.2 mtpa of long-term binding LNG sale and purchase agreements (SPAs) with TotalEnergies, Shell NA LNG, ENN LNG, Engie, ExxonMobil LNG Asia Pacific, Guangdong Energy Group, China Gas Hongda Energy Trading, Galp Trading and Itochu Corporation.
NextDecade recently reached a positive final investment decision (FID) to construct the first three liquefaction trains (Phase 1) at this LNG export facility and issued the notice to proceed (NTP) to Bechtel Energy to begin construction.
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Under the contract, Air Products will provide its coil-wound heat exchangers (CWHEs) and AP-C3MR LNG Process technology. The CWHEs will be produced at its LNG equipment manufacturing facility in Port Manatee, Florida.
The contract comes on the heels of the company’s announcement that it will be making a significant investment to meet industry demand with increased winding capacity at the manufacturing facility in Port Manatee.
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Air Products will also supply its proprietary LNG process technology and equipment to French engineering company Technip Energies for an electric-driven LNG project in China and to Sempra Infrastructure’s Port Arthur LNG Phase 1 project in Jefferson County, Texas, U.S.
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Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.