Privately held NextDecade Corp. and McDermott International Inc. have agreed not to execute an engineering, procurement, and construction contract for NextDecade’s 27 million-tonne/year Rio Grande LNG plant at the Port of Brownsville in South Texas. The two companies had originally planned by the end of this year’s second quarter to sign a lump-sum turnkey EPC contract for construction of Rio Grande, but now believe McDermott will have to secure a joint-venture partner to successfully execute and financially guarantee the project.
To maintain Rio Grande’s 2023 projected commercial operations date, NextDecade has launched a competitive EPC bid process. This process will provide NextDecade with front-end engineering and design verification and a final lump-sum turnkey EPC contract based on Rio Grande’s existing FEED, completed in late 2017 by McDermott.
NextDecade has invited Bechtel Corp., Fluor Corp., and McDermott to bid on the contract, which it anticipates executing in third-quarter 2019, stipulating that McDermott will have to secure a joint-venture partner.
The US Federal Energy Regulatory Commission will issue its final environmental impact statement on Rio Grande and the associated Rio Bravo pipeline, originating near the Agua Dulce hub, on Apr. 26, 2019, based on issuance of a draft EIS in October. Based on this timing, FERC has established a 90-day federal authorization deadline for Rio Grande of July 25, 2019, in line with NextDecade’s anticipation of make a final investment decision in third-quarter 2019.
Rio Grande will use Air Products & Chemicals Inc.’s propane precooled mixed refrigerant (C3MR) liquefaction process, Baker Hughes GE compression, and ABB automation and electricals (OGJ Online, Apr. 25, 2017).
NextDecade also announced that Ivan van der Walt has joined the company as project manager, Rio Grande LNG. Van der Walt will oversee all aspects of project development, including the competitive EPC process. He will report directly to NextDecade’s Chief Executive Officer Matt Schatzman, effective Oct. 1, until a new chief operating officer is named. Current COO Rene van Vliet has announced his retirement effective that date.
Van der Walt has nearly 25 years’ experience in the oil and gas industry, including senior roles with CB&I (now McDermott) and Chevron Corp.
Contact Christopher E. Smith at [email protected].
