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.
Source: NextDecade 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.