BREAKING: NextDecade sanctions first $18.4bn phase of Rio Grande LNG
US LNG developer Next Decade said July 12 it had made a positive final investment decision (FID) on the first three trains of its 27mn tonnes/year Rio Grande LNG (RGLNG) project in Brownsville, Texas.
In reaching FID, it said it had executed a joint venture agreement for Phase 1 which includes $5.9bn of financial commitments from Global Infrastructure Partners, GIC, Mubadala Investment Company and TotalEnergies.
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NextDecade has also committed to invest $283mn in Phase 1, which includes $125mn of pre-FID capital investments. And it has closed $11.6bn of non-recourse bank credit facilities and a $700mn private placement.
The $18.4bn committed for Phase 1 is the largest greenfield energy project financing in US history, NextDecade said.
In conjunction with the FID, NextDecade issued a notice to proceed (NTP) to Bechtel Energy to begin construction of Phase 1 under its lump-sum turnkey engineering, procurement and construction contracts.
“Achieving FID and issuing NTP on RGLNG Phase 1 is a landmark event reflecting years of hard work and dedication by NextDecade’s employees, shareholders, construction partners, equipment suppliers and customers,” NextDecade CEO Matt Schatzman said.
Phase 1 carries a nameplate capacity of 17.6mn tonnes/year, underpinned by 16.2mn tonnes/year of long-term, binding LNG sale and purchase agreements with TotalEnergies, Shell, ENN LNG, Engie, ExxonMobil, Guangdong Energy Group, China Gas Hongda Energy Trading, Galp Trading and Itochu.
“NextDecade is on a mission to produce lower-carbon intensive LNG for its customers, and we’re honoured to be their partner,” Paul Marsden, president of Bechtel, said in a statement. “Today, as we commence engineering, procurement, and construction on the first phase of this project, we affirm our commitment to the community through quality jobs, training, and support for the supply chain and small businesses.”