Rio Grande LNG boosts planned capacity to 45 million tpy
NextDecade Corp. has begun development of three additional trains for its Rio Grande LNG liquefaction plant on the north shore of the Brownsville Ship Channel in south Texas, bringing its total planned capacity to 45 million tonnes/year (tpy). In the meantime, the company, via its engineering, procurement, and construction (EPC) contractor, Bechtel Energy Inc., has completed 38.1% of work on Trains 1 and 2. Train 3 is 15.3% complete.
For Trains 1 and 2, engineering is 84.9% complete, procurement 69.2% complete, and construction 10.6% complete. The same categories for Train 3 are 33.5%, 32.8%, and 0.4%, respectively. All categories for both phases are in line with the EPC contract’s schedule, according to NextDecade. Trains 4 and 5 are currently being commercialized, and NextDecade is beginning the permitting process for Trains 6-8.
Rio Grande LNG Phase 1 encompasses Trains 1-3, with a combined nameplate capacity of 18 million tpy. It will also include two 180,000-cu m full-containment LNG storage tanks, and two berths designed to load LNG carrier up to 216,000-cu m capacity. Trains 4-5 would add 9 million tpy of liquefaction to the plant and Trains 6-8 an additional 18 million tpy.
Rio Grande LNG has received necessary approvals and authorizations required for the construc-tion of the first five liquefaction trains and export of up to 27 million tpy of LNG, including approval from the US Federal Energy Regulatory Commission (FERC) and both free-trade agreement (FTA) and non-FTA export authorizations from the Department of Energy.
Train 6, with expected capacity of 6 million tpy, is being developed inside the existing levee at the Rio Grande LNG site and adjacent to Trains 1-5. The company expects to request a prefiling application with FERC for Train 6 in 2025, and a full FERC application in early 2026. Trains 7 and 8, with a total expected capacity of 12 million tpy, are being developed on the site but outside the existing levee.
NextDecade expects to make a positive final investment decision (FID) and begin construction of Trains 4 and 5 subject to, among other things, maintaining requisite governmental approvals, finalizing and entering into EPC contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure. The company has finalized an EPC contract with Bechtel for Train 4 and related infrastructure.
It also continues to advance commercial discussions with multiple potential counterparties and expects to finalize commercial arrangements for Train 4 in the coming months to support a positive FID.
NextDecade has entered into an agreement with Abu Dhabi National Oil Co. (ADNOC) for the sale of 1.9 million tpy of LNG from Train 4, and a non-binding heads of agreement with Saudi Aramco for a 20-year sale of 1.2 million tpy from Train 4. Additionally, an affiliate of TotalEnergies SE has an LNG purchase option of 1.5 million tpy for Train 4. NextDecade expects TotalEnergies to exercise the option. TotalEnergies also holds an LNG purchase option for 1.5 million tpy for Train 5.
Christopher E. Smith | Editor in Chief
Christopher brings 27 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 15 of them in midstream and transportation sectors.
