Last week, NextDecade Corp provided an update on developmental and strategic activities for the third quarter and early fourth quarter 2024.
“We continued to make excellent progress on the construction of Phase 1 at the Rio Grande Facility during the third quarter,” explained Matt Schatzman, NextDecade’s Chairman and CEO. “The facility continues to progress safely, in line with schedule, and on budget, and the site has significantly advanced in the past few months.
“The Bechtel team has done exemplary work, including continued pipe work for Train 1, completing the first foundation pour for Train 2, and preparing to begin deep soil mixing for Train 3. Bechtel has also laid feed gas piping and begun constructing walls for both storage tanks. We remain committed to working with Bechtel to prioritise safety and risk management as Phase 1 construction continues.
“We have been managing the DC Circuit Court’s August decision to vacate the reauthorisation of the Rio Grande LNG facility with our partners and stakeholders, and we would like to thank the local Rio Grande Valley community, numerous local and federal elected officials, our LNG customers, our lenders, our equity partners, the Brownsville Navigation District, Bechtel, our suppliers, many industry participants and groups, and all other stakeholders for their wides-pread support of the Rio Grande LNG project and the company.
“In October, we filed a petition for rehearing and rehearing en banc with the Court. The Court’s decision will not become effective while the appeals process is ongoing, and we remain committed to taking any and all available legal and regulatory actions to ensure that Phase 1 will be delivered on time and on budget and that FID on Trains 4 and 5 will not be unduly delayed,” he said.
Recent developments included:
• Under the EPC contracts with Bechtel Energy), Phase 1 progress is tracked for Train 1, Train 2, and the common facilities on a combined basis and Train 3 on a separate basis.
As of September, 2024: s The overall project completion percentage for Trains 1 and 2 and the common facilities of the Rio Grande LNG Facility was 30.5%, which is in line with the schedule under the EPC contract. Within this project completion percentage, engineering was 76.1% complete, procurement was 57.6% complete, and construction was 5.5% complete.
• The overall project completion percentage for Train 3 of the Rio Grande LNG Facility was 9.8%, which is also in line with the schedule under the EPC contract. Within this project completion percentage, engineering was 17.0% complete, procurement was 21.9% complete, and construction was 0.1% complete.
• In July, 2024, the company appointed Tarik Skeik as COO. He has over 20 years of experience delivering complex global mega projects in LNG, oil, and petrochemicals across North America, the Middle East, and Asia.
• In August, 2024, the company entered into an EPC contract with Bechtel for Train 4 and related infrastructure. Price validity under the EPC contract for Train 4 and related infrastructure extends through 31st December, 2024.
• Also in August, 2024, the US Court of Appeals for the DC Circuit issued a decision vacating the Federal Energy Regulatory Commission (FERC) reauthorisation of the Rio Grande LNG facility on the grounds that FERC should have issued a supplemental Environmental Impact Statement (EIS) during its reauthorisation process. On 21st October, 2024, NextDecade filed a petition for rehearing and rehearing en banc with the Court.
• The Court’s decision will not be effective until the it has issued its mandate, which is not expected to occur until after the appeals process has been completed.
• At this time, construction continues on Phase 1 at the Rio Grande LNG Facility.
• The company expects to take all available legal and regulatory actions, including but not limited to appellate actions and other strategies, to ensure that construction on Phase 1 will continue and that necessary regulatory approvals will be maintained to enable a positive final investment decision (FID) on Trains 4 and 5.
