LNG

Chiyoda Corp, the Japanese LNG engineering company working on the Golden Pass project in Texas that has been hit by the bankruptcy of the US Zachry construction group, is seeking an immediate return to building work along with the owners to get Train 1 back on track.

NextDecade Corp., the company developing the Rio Grande LNG export plant on the north shore of the Brownsville Ship Channel in south Texas, has given a comprehensive update on strategic activities through the first quarter of 2024.

NextDecade Corp., the company developing the Rio Grande LNG export plant on the north shore of the Brownsville Ship Channel in south Texas, has given an update on third-quarter business activities and progress on the joint venture.

NextDecade Corp., the developer of the Rio Grande LNG export project in Brownsville in Texas, has entered into a credit agreement with a group of lenders for $356 million of senior loans to finance a portion of the first three liquefaction Trains.

July 25 (LNGJ) - The Port of Brownsville in Texas, the only deep-water seaport directly on the US-Mexico border, said the Brazos Island Harbor (BIH) Channel Improvement Project would soon enter the construction phase to ease access for large ships. This will include the vessels berthing at the Rio Grande LNG export joint venture being developed by Houston-based NextDecade Corp. and partners.

   The Port said the improvement project’s contractor Great Lakes Dredge & Dock Corp. had received a Notice to Proceed to perform the work on the Brownsville Ship Channel. “Great Lakes is set to commence Phase 1 of the project later this year,” said the Port. “The historic BIH project will deepen the 17-mile-long Brownsville Ship Channel from 42 to 52 feet, resulting in significant navigational safety improvements for commercial shipping in South Texas,” it added.

Baker Hughes, the US energy technology company and compressor provide for liquefaction plants, was awarded an order by Bechtel Energy to supply equipment for the Rio Grande export project in Texas being developed by NextDecade Corp. and partners.

June 30 (LNGJ) - NextDecade Corp., the developer of the Rio Grande LNG export project and now teamed up with New York investment fund Global Infrastructure Partners and French TotalEnergies, has signed binding agreements with lenders to secure over $10 billion in financing to fund construction.

   NextDecade expects to proceed with the three-Train first phase of a joint venture with ultimate plans and permits to produce up to 27 million tonnes per annum of LNG from five Trains built on the Brownsville Ship Channel. “Due in part to the observance of various holidays around the world, including the July 4th holiday, NextDecade is now targeting FID on Phase 1 in early July with FIDs of its remaining Trains to follow thereafter,” said the Houston-based company.

NextDecade Corp., the developer of the Rio Grande LNG export project in Texas, has teamed up with a New York investment fund and TotalEnergies to enable a final investment decision for the first three liquefaction Trains and with the French major buying 5.4 million tonnes per annum of cargoes and taking a large stake in NextDecade.

NextDecade Corp., the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has amended its engineering contract agreement with US company Bechtel Energy to extend the price validity.

The engineering, procurement and construction contract with Bechtel for the building of the first three liquefaction Trains has been extended to June 15, 2023.

“NextDecade currently estimates the aggregate lump-sum EPC cost to construct Trains 1-3 of the Rio Grande Facility at approximately $11.5 billion,” said NextDecade in a statement to the Nasdaq global exchange.

“The final EPC lump-sum contract pricing for Trains 1-3 of the Rio Grande facility will be determined prior to a final investment decision and is subject to change, including if RGLNG does not issue a full notice to proceed to Bechtel on or before June 15, unless extended by mutual agreement of the parties thereto,” the company explained.

NextDecade said that it was currently targeting a positive FID on Trains 1-3 of the Rio Grande project before the end of the second quarter of 2023, with FIDs on the remaining Trains to follow later.

Houston, Texas-based Next Decade has ultimate plans and permits to produce up to 27 MTPA of LNG from five liquefaction Trains at the Rio Grande facility.

Numerous delays

The Rio Grande project has been delayed on numerous occasions over the years and was originally expected to start producing LNG in 2023.

NextDecade signed about half a dozen sales and purchase agreements (SPAs) in 2022, the most recent being a volume increase in December with ENN LNG of Singapore, a trading unit of the Chinese ENN Natural Gas Group.

Under the 20-year SPA, ENN will now purchase 2.0 MTPA of LNG. NextDecade said this was a 500,000 tonnes per annum increase from the original 1.5 MTPA SPA announced earlier in 2022.

All volumes of LNG are indexed to the US benchmark Henry Hub natural gas price and will be supplied from the first three Trains at the Rio Grande facility.

Portugal deal

NextDecade earlier in December 2022 signed an SPA with Galp Trading S.A. of Portugal.

This was its fifth deal of the year and the increase of volumes for ENN Group was its sixth volume sign-up.

NextDecade has made progress with other SPAs during 2022, including one with ExxonMobil Corp.

The US major signed a 20-year supply deal with NextDecade at the end of July 2022 through its trading subsidiary in Asia.

NextDecade has also signed three supply agreement with Chinese companies, including a 20-year deal with China Gas Hongda Energy Trading Co., a wholly-owned subsidiary of China Gas Holdings, the ENN Group and with Guangdong Energy Group Natural Gas.

NextDecade Corp. the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has signed a 15-year sale and purchase agreement (SPA) with Japanese trading house Itochu Corp., its first deal with Japan and its seventh SPA overall.

Under the latest SPA, Itochu will purchase 1.0 million tonnes per annum of LNG indexed to Henry Hub on a free-on-board basis.

Itochu was also one of the three Japanese companies that recently signed deals with Oman LNG on the Arabian Peninsula for 800,000 tonnes per annum of deliveries each.

“We are honored to have Itochu as our first Japanese customer,” said Matt Schatzman, NextDecade's Chairman and Chief Executive.

“We look forward to providing Itochu and their customers with LNG, and we are actively working to reduce the carbon footprint of the Rio Grande LNG facility through our proposed carbon capture and storage project,” added the CEO of the Nasdaq-listed company.

NextDecade had previously signed an increase for the SPA with ENN LNG of Singapore, a trading unit of the Chinese ENN Natural Gas Group.

Supplying China

Under that 10-year SPA, ENN will now purchase 2.0 MTPA of LNG. Several other Chinese companies have signed agreements for volumes from the Rio Grande plant.

The company’s sales volumes will be supplied from the first three Trains at the Rio Grande facility.

Houston, Texas-based NextDecade has ultimate plans and permits to produce up to 27 MTPA of LNG from five liquefaction Trains at the Rio Grande facility.

The Rio Grande project has been delayed several times since 2020 and was originally expected to start producing LNG in 2023.

NextDecade said it was currently targeting a positive final investment decision on the first three Trains during the first quarter of 2023, with FIDs of its remaining Trains to follow thereafter.

NextDecade had other deals signed in December 2022 and in previous months, including one with Galp Trading S.A. of Portugal.

This was its fifth deal of last year and counting the increase of volumes for ENN Group and the latest Itochu agreement to supply Japan, NextDecade has signed a total of seven supply accords.

NextDecade's other SPAs during 2022 included one with ExxonMobil Corp.

The US major signed a 20-year supply deal with NextDecade at the end of July 2022 through its trading subsidiary in Asia.