Enbridge to begin building Rio Bravo Pipeline following RGLNG FID

Enbridge Inc. will begin construction of the Rio Bravo Pipeline now that NextDecade Corp. reached a final investment decision to proceed with its Rio Grande LNG (RGLNG) plant, the company said as part of its Aug. 4 earnings report.

NextDecade Corp. gave the greenlight to Bechtel Energy Inc. to begin Phase 1 construction (three liquefaction trains) at its 27-million tonne/year (tpy) RGLNG plant in Brownsville, Tex. (OGJ Online, July 13, 2023).

As a result, Enbridge plans to advance construction of the 4.5 bcfd Rio Bravo natural gas pipeline after obtaining necessary regulatory approvals.

The first phase of the Rio Bravo Pipeline will transport 2.6 bcfd of natural gas feedstock from the Agua Dulce supply area to RGLNG. The project is expected to achieve commercial operations in 2026.

Enbridge acquired Rio Bravo Pipeline Co. LLC from NextDecade Corp. in 2020 whereby it assumed all responsibility for the development, financing, construction, and operations of the Rio Bravo Pipeline (OGJ Online, Feb. 14, 2020).

Enbridge also noted in the earnings report the extended and upsized open season for long-term contracted service on the Flanagan South crude oil pipeline system (FPS).

FSP provides service from the Enbridge Mainline originating at Enbridge's Flanagan Terminal in Illinois and delivers near Houston, Tex., through the 950,000-b/d Seaway Pipeline Enbridge owns in partnership with Enterprise Products Partners LP.

If the open season is successful, Enbridge said, FSP will approach 90% term-contracted on its 720,000 b/d nameplate capacity.

Second-quarter financials

Enbridge had second-quarter earnings of $1.8 billion, compared with earnings of $0.5 billion in the year-ago quarter. Adjusted earnings were $1.4 billion, compared with $1.4 billion in second-quarter 2022.

Cash provided by operating activities was $3.4 billion, compared with $2.5 billion in second-quarter 2022.