NextDecade raises USD 85 million for Rio Grande LNG

Texas-based NextDecade raised an additional US$85 million in order to take the Rio Grande LNG and Rio Bravo Pipeline project to final investment decision as well as to fund the development of Pelican Island LNG in Galveston.

NextDecade said in a statement on Monday that Valinor Management and Halcyon Energy Investors have joined certain funds managed by York Capital Management Global Advisors and its affiliates in providing the company with the US$85 million.

The terms of the transaction include options for NextDecade’s three strategic investors to invest the requisite FID equity sufficient to commence construction of the RGLNG project. Together, York, Valinor and Halcyon manage assets in excess of US$40 billion. Jefferies LLC served as sole placement agent for NextDecade.

Since entering the U.S. Federal Energy Regulatory Commission Pre-Filing Process in March of this year, RGLNG has made significant strides in engineering and design, regulatory commitments, LNG marketing, and local community outreach, according to the statement.

NextDecade executed a Front-End Engineering and Design agreement with Chicago Bridge & Iron Company, as well as the terms under which CB&I could assume the role as the EPC contractor on the RGLNG project. Further, NextDecade submitted Draft Resource Reports 1 & 10 to the FERC during May of 2015.

NextDecade plans to complete FEED by the end of the year and enter the full NEPA filing process with the FERC in Q1 2016. NextDecade expects RGLNG to achieve first LNG by Q3 2020.

The company said that it is currently in active negotiations with major international buyers for long-term contractual LNG off take agreements.

Additionally, NextDecade continues the development of its other projects, including Pelican Island LNG in Galveston, Texas. PILNG is continuing basis-of-design work and preliminary engineering while it prepares for future FERC Pre-Filing, it added.

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