NextDecade to decide on Texas LNG project this year
- Business developments & projects
US company NextDecade said it still plans to decide on its proposed Rio Grande LNG export plant in Texas this year following reports that the decision could be affected by the Covid-19 coronavirus pandemic.
Reuters reported on Monday citing a NextDecade spokeswoman that the company did not provide an update on Rio Grande LNG’s final decision meaning it still aims to take the decision in 2020.
NextDecade said in a filing to the stock exchange on Friday it would delay the release of its quarterly earnings report until around May 18 from the original deadline of May 11.
In that filing, NextDecade said that the pandemic has caused disruptions to the company’s business and operations, including the closing of its offices and requiring all company staff to work from home.
“The outbreak of Covid-19 and volatility in the energy markets may materially and adversely affect our business, financial condition,
operating results, cash flow, liquidity and prospects”, NextDecade said in the filling.
The company also said in the filling that this could include delaying a final investment decision with respect to the Rio Grande LNG terminal.
The Rio Grande LNG export project in Brownsville, Texas includes a 27 million tonnes per annum LNG plant and the 4.5 Bcf/d Rio Bravo pipeline.
NextDecade has a contract with engineering giant Bechtel to build two liquefaction trains for $7.042 billion or three trains for $9.565 billion.
Each train can produce about 5.87 million tonnes per annum of LNG or about 0.77 billion cubic feet per day of natural gas.
NextDecade expects the project to enter service in 2023.