NextDecade Corp. and Enbridge Inc. have entered into a definitive agreement whereby Enbridge will acquire Rio Bravo Pipeline Co. LLC (RBPL) from NextDecade for a cash purchase price not to exceed $25 million, with $15 million paid at closing and the balance paid upon NextDecade's reaching a positive final investment decision on its Rio Grande LNG export plant in the Port of Brownsville, Texas.
Upon closing of the transaction, Enbridge will own 100% of RBPL and assume all responsibility for the development, financing, construction, and operations of the 4.5-bcfd Rio Bravo Pipeline. NextDecade will continue to be responsible for the development, financing, construction, and operations of Rio Grande LNG.
Enbridge and NextDecade also negotiated a precedent agreement, to be executed at closing, whereby NextDecade will retain its rights to the natural gas firm transportation capacity on the Rio Bravo Pipeline for a term of at least 20 years to supply Rio Grande LNG.
The purchase agreement is expected to close first-quarter 2020.
Rio Bravo is designed to transport natural gas from the Agua Dulce supply area to Rio Grande LNG. In November 2019, the US Federal Energy Regulatory Commission (FERC) issued an order authorizing Rio Grande LNG project and Rio Bravo Pipeline. In January 2020, FERC issued a final order on rehearing for both projects.