Houston-based NextDecade Corporation has announced an $18.4 billion final investment decision to construct the first three liquefaction trains at its Rio Grande LNG terminal, the largest proposed liquefied natural gas (LNG) export facility in the United States located at the Port of Brownsville, Texas.
The company called the decision the largest greenfield energy project financing in U.S. history, highlighting the importance of LNG and natural gas in the global energy transition.
At full capacity, Rio Grande LNG will produce 27 million metric tonnes of LNG for export. The project includes a large carbon capture and storage component that will aim to capture and permanently store over 5 million metric tonnes of CO2 per year, reducing carbon emissions by over 90%.
Phase 1 has a nameplate liquefaction capacity of 17.6 MTPA and 16.2 MTPA of long-term binding LNG sale and purchase agreements with various companies including TotalEnergies, Shell NA LNG LLC, and ExxonMobil LNG Asia Pacific.
The project is expected to generate over 5,000 jobs and provide a significant boost to the gross domestic product, with an estimated increase of $6 billion in Cameron County, $23 billion in Texas, and up to $35 billion in the United States, according to the company.
“The future of the Rio Grande Valley’s economy begins at the Port of Brownsville,” said Brownsville Navigation District Chairman Esteban Guerra. “This dynamic project, the largest private infrastructure investment in the State of Texas, will provide good-paying jobs and economic growth to the region.”
NextDecade has also issued the notice to proceed (NTP) to Bechtel Energy Inc. (Bechtel) for Phase 1 construction under its lump-sum turnkey engineering, procurement, and construction contracts (EPC).
Global Infrastructure Partners, GIC, Mubadala, and TotalEnergies have committed $5.9 billion for Phase 1, with options to invest in two additional trains and the CCS project. TotalEnergies’ investment in trains 4 and 5 is dependent on exercising their LNG purchase rights.
