Rio Grande LNG Receives DOE Authorization to Export Liquefied Natural Gas to Free Trade Agreement Countries
September 07, 2016 01:53 PM Eastern Daylight Time
THE WOODLANDS, Texas–(BUSINESS WIRE)–NextDecade, LLC announced today that the United States Department of Energy (DOE) has authorized the export of Liquefied Natural Gas (LNG) from its proposed Rio Grande LNG facility to Free Trade Agreement (FTA) countries.
Responding to the application filed in December 2015, the DOE order authorizing the export of up to 27 Mtpa of LNG (equivalent to approximately 3.6 Bcf/d natural gas) for a 30-year term was granted on August 17, 2016 subject to Rio Grande LNG’s continued compliance with customary regulatory obligations as determined by all relevant agencies.
“NextDecade is well-positioned to meet international demand, and FTA export authorization is an important milestone towards making a final investment decision in 2017,” said Alfonso Puga, NextDecade Chief Commercial Officer. “The U.S. has an abundant supply of natural gas and we have found a robust appetite for LNG.”
In November 2015, NextDecade announced it had signed non-binding agreements for 14 Mtpa of LNG with customers across Asia and Europe. Since then, that number has grown to 30 Mtpa, demonstrating a continued desire for U.S.-produced LNG from customers around the world, and specifically, a desire for LNG from NextDecade.
NextDecade expects to receive FERC approval for Rio Grande LNG in 2017 with initial LNG exports shipping by the end of 2020.
About Rio Grande LNG
Rio Grande LNG is a proposed liquefied natural gas (LNG) export facility at the Port of Brownsville. The project, proposed for a 1,000-acre industrial site on the Port of Brownsville, includes the Rio Bravo Pipeline, and is currently in the rigorous Federal Energy Regulatory Commission (FERC) permitting process. Should the project move forward, it is expected to create between 4,000 and 6,000 construction jobs, more than 200 well-paid permanent jobs, and reflect a potential investment up to $20 billion. To date, our world-class engineers, safety experts and environmental consultants have spent more than 250,000 man-hours ensuring that the project is developed with the utmost care and attention to safety, respecting the people, preserving the environment and caring for the Valley’s way of life. For more information, please visit www.riograndelng.com.
About NextDecade, LLC
NextDecade, based in The Woodlands, Texas, is a development and management company of land-based and floating LNG projects, creating innovative opportunities in the integrated natural gas industry and providing customers access to the full LNG value chain. By bringing together people, companies and opportunities, NextDecade assembles best in class assets to deliver successful projects. Founded in 2010, NextDecade represents a team of industry leaders with extensive experience in the full LNG value chain, including successfully closing major LNG off-take deals, LNG/FLNG technology, and project management. The experienced team has developed, led, closed and operated industry-leading LNG, Gas and Electricity projects globally. For more information, please visit www.next-decade.com.
Statements made herein by NextDecade, LLC (“ND”) or any of its officers, directors, members, shareholders, employees, advisors, representatives, contractors or agents (“ND Representatives”) may include statements of future expectations and other forward-looking statements that are based on such ND’s or ND Representatives’ present views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to materially differ from those expressed or implied in such statements. ND and ND Representatives assume no obligation to update any forward-looking statement or to update any information contained herein. To the fullest extent permitted by law, Company excludes all representations and warranties relating to its contents and excludes all liability for damages arising out of or in connection with use of this information. Any development of the project remains contingent upon completing required commercial agreements; acquiring all necessary permits and approvals; securing all financing commitments and potential tax incentives; achieving other customary conditions; and making a final investment decision to proceed.
About NextDecade Corporation
NextDecade is an LNG development company primarily focused on LNG export projects and associated pipelines in Texas. NextDecade intends to develop a portfolio of LNG projects, including the 27 mtpa Rio Grande LNG export facility in Brownsville, Texas and the 4.5 Bcf/d Rio Bravo Pipeline that would transport natural gas from the Agua Dulce area to Rio Grande LNG. NextDecade’s common stock is listed on the Nasdaq Stock Market under the symbol “NEXT.” NextDecade is headquartered in Houston, Texas.
Located at the Port of Brownsville in South Texas, NextDecade’s Rio Grande LNG project is expected to be a leader among second wave U.S. LNG projects. NextDecade believes its customers and shareholders will benefit from the project’s experienced leadership, proven approach, and optimal location. NextDecade’s technology selections are expected to foster operational reliability and afford NextDecade’s customers access to abundant natural gas from the Permian Basin, Eagle Ford Shale, and other basins.
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words “believe,” “expect,” “intend,” “plan,” “potential,” and similar expressions are intended to identify forward-looking statements, and these statements may relate to the business of the Company and its subsidiaries. These statements have been based on the Company’s current assumptions, expectations, and projections about future events and involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. These risks include uncertainties about the Company’s Rio Grande LNG and Rio Bravo pipeline projects and other matters discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and other subsequent reports filed with the Securities and Exchange Commission, all of which are incorporated herein by reference.
Any development of the projects remain contingent upon completing required commercial agreements; acquiring all necessary permits and approvals; securing all financing commitments and potential tax incentives; achieving other customary conditions; and making a final investment decision to proceed. The forward-looking statements in this press release speak as of the date of this release. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, the Company can give no assurance that the expectations will prove to be correct. The Company may from time to time voluntarily update its prior forward-looking statements, however, it disclaims any commitment to do so except as required by securities laws.
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