WATCH: NextDecade breaks ground on Rio Grande LNG
WATCH: NextDecade breaks ground on Rio Grande LNG - Offshore Energy
WATCH: NextDecade breaks ground on Rio Grande LNG
Texas-based energy company NextDecade has officially started the construction of Phase 1 of the 27 million tonnes per annum (mtpa) Rio Grande LNG export facility in Brownsville.
To mark the official kick-off, the groundbreaking ceremony was held on October 3, 2023, in the presence of the project’s partners, stakeholders, investors, and teammates.
In his speech on the occasion, Matt Schatzman, Chairman and CEO of NextDecade, said the Rio Grande LNG Phase 1 is a project that will help shape the company’s future and the future of Rio Grande Valley from an energy perspective.
He added that the project will deliver low-carbon LNG to the rapidly growing natural gas market and that countries worldwide will be looking to Brownsville to help meet their critical energy needs.
To remind, NextDecade reached FID for Phase 1 of the Rio Grande LNG export facility and issued the notice to proceed to Bechtel Energy to begin construction under its engineering, procurement, and construction contracts (EPC).
Phase 1, with a nameplate liquefaction capacity of 17.6 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 entered into a credit agreement with a group of lenders for $356 million of senior loans to finance a portion of Phase 1 at Rio Grande LNG.
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.