NextDecade and CB&I Complete Rio Grande LNG FEED Update

NextDecade announced today that it has completed the Front-End Engineering & Design (FEED) update package with CB&I for the proposed Rio Grande LNG project in South Texas. The update reconfirmed EPC cost estimates for three trains of $490 per ton with a target of $450 per ton. For two trains the EPC cost estimate improves to $535 per ton with a target of $500 per ton according to NextDecade.

“Rio Grande LNG stands out thanks to its proven project design allowing for low risk, highly competitive economics across multiple build scenarios,” said NextDecade CEO Matt Schatzman. The scalable development affords NextDecade flexibility to reach Final Investment Decision with as few as two trains, without sacrificing economics. “We intend to develop our full 6-train project at Rio Grande, and by incorporating a competitive, scalable design, we are able to offer a lower risk profile to both investors and customers beginning with our first two trains,” added Schatzman.

NextDecade and CB&I currently plan to execute a binding Lump-Sum Turnkey EPC agreement in 2Q 2018.

NextDecade intends to develop a portfolio of LNG projects, including the 27 mtpa Rio Grande LNG export facility in Brownsville, Texas. The NextDecade proposed 4.5 Bcf/d Rio Bravo Pipeline would transport natural gas from the Agua Dulce supply area in Nueces County, Texas to Rio Grande LNG.