NextDecade, Bechtel extend agreed pricing of Rio Grande LNG contract

March 16, 2023
NextDecade Corp. has notified the SEC of amendments to its agreements with Bechtel Energy Inc. for EPC contracts on the 17.6-million tpy Phase 1 of the proposed Rio Grande LNG plant in Brownsville, Tex.

NextDecade Corp. has notified the US Securities and Exchange Commission (SEC) of amendments to its agreements with Bechtel Energy Inc. for engineering, procurement, and construction (EPC) contracts on the 17.6-million tonne/year (tpy) Phase 1 of the proposed Rio Grande LNG plant in Brownsville, Tex. The amendments lock in agreed upon pricing until June 15, 2023, and follow NextDecade missing a deadline to issue Bechtel a notice to proceed with construction.

NextDecade also told the SEC that is targeting final investment decision (FID) for Phase 1’s three liquefaction trains by the end of second-quarter 2023. It had previously been targeting a first-quarter 2023 FID.

The EPC contract is worth roughly $11.5 billion and includes the three liquefaction trains, two marine berths, and two 180,000-cu m storage tanks.

NextDecade has so far reached long-term sales agreements with eight buyers for a total of 11 million tpy. The most recent of these was a 15-year, 1-million tpy deal concluded with Itochu Corp. earlier this year (OGJ Online, Jan. 19, 2023).

A designed second phase would add two trains and bring total capacity to 27 million tpy.