Bechtel Awards Contract for NextDecade’s Rio Grande LNG Project

The contract calls for Baker Hughes to supply equipment for three liquefaction trains for the project located in Brownsville, Texas.

Artist render of NextDecade's Rio Grande LNG export facility at the Port of Brownsville, Texas.
Source: NextDecade

Energy technology company Baker Hughes said Thursday that it won the contract to supply key liquefaction equipment for NextDecade’s Rio Grande liquefied natural gas (LNG) project in the Port of Brownsville, Texas.

The Houston-based company said that Bechtel awarded it the contract to supply three main refrigerant compressors.

The contract includes the supply of six Frame 7 turbines paired with 18 centrifugal compressors across 3 LNG trains for a nameplate capacity of 17.61 mtpa.

“This order builds on our longstanding relationship with Bechtel and is a significant milestone in our partnership with NextDecade, supporting them on this key LNG project,” said Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes.

“We are delighted that our proven and reliable technology solution will support the production of LNG in the US, which is crucial in balancing energy affordability, security, and sustainability globally.”

Baker Hughes said that the manufacturing of the compressors, as well as the testing of the trains and the packaging of the turbine/compressor train, will take place at its facilities in Italy.

Bechtel awarded Baker Hughes a similar but smaller contract in March to supply the first phase of Sempra Infrastructure’s Port Arthur LNG project, located in Jefferson County, Texas.

NextDecade said on 29 June that it had secured sufficient binding commitments from banks to support a positive final investment decision (FID) for the project’s first three liquefaction trains (Phase 1). The company has sold 16.2 mtpa of LNG, or 92% of nameplate capacity, under long-term sale and purchase agreements.

FID was originally expected in the fourth quarter of 2019, before being pushed multiple times. The company said it is now targeting FID on Phase 1 in early July, with FIDs on remaining trains to follow.