Rio Grande LNG FID Expected in 2021
FID on RGLNG was originally expected in 2019, before it was pushed to Q1 2020. NextDecade will continue to develop and de-risk the project.
NextDecade said during its first quarter earnings report it has pushed the final investment decision (FID) for the 27-mtpa Rio Grande LNG (RGLNG) project in Brownsville, Texas, to 2021.
FID was originally expected in Q4 2019, before being pushed to Q1 2020 and then to 2021.
The company implemented measures to manage costs to ensure it has sufficient pre-FID liquidity to operate through year-end 2021.
NextDecade added that it continues to advance and de-risk the RGLNG project.
This year through April, the company received additional regulatory permits the project, received approval from the Federal Energy Regulatory Commission for notice to proceed, and sold its Rio Bravo Pipeline Company to Enbridge.
The company also extended RGLNG engineering, procurement, and construction contract price validity with Bechtel, and extended the start date of the RGLNG Port of Brownsville lease agreement.
RGLNG has a 2-mtpa, 20-year sale-and-purchase agreement with Shell, with expectations it can reach FID with an additional 9-mtpa capacity sold under long-term contracts.