July 20, 2023 [Yahoo!]- Energy producer NextDecade Corp. said on Wednesday it’s moving ahead with construction of a multibillion dollar liquefied natural gas export terminal at the Port of Brownsville in South Texas.
The Houston-based company’s Rio Grande LNG terminal at the port will consist of five compressor units once completed, with each designed to process 5.4 million metric tons of LNG per year, making the 984-acre facility among the largest LNG exporters in the world.
“We look forward to delivering this important LNG project that will supply the world with reliable and lower-carbon intensive LNG,” Matt Schatzman, NextDecade’s chairman and CEO, said in a news release. “Now our focus turns to safely constructing Phase 1 on time and on budget.”
The Rio Grande LNG terminal project’s total cost for the first phase is $18.4 billion. NextDecade said it has secured almost $6 billion in financing from international partners to begin work on the project’s first three compressors to LNG from Texas’ shale fields for export on global markets.
NextDecade’s partners in the project include French oil giant TotalEnergies and financial investors Global Infrastructure Partners, GIC and Mubadala Investment Co.
The company did not specify a completion date for the first phase of the project during Wednesday’s announcement. NextDecade initially planned to begin construction of the Rio Grande LNG terminal last year, with a target completion date of 2026.
Officials for the Port of Brownsville said the Rio Grande LNG terminal will transform South Texas and the state’s trade with the world.
Located 277 miles south of San Antonio at the southernmost tip of Texas along the Gulf of Mexico, the Port of Brownsville is the only deep-water seaport located along the border, making it a major trade channel between Texas and Mexico.
“The Rio Grande LNG facility will be a true game-changer for our community, representing a generational achievement,” Eduardo A. Campirano, the port’s director and CEO, said in a news release. “Its impact will be enormous, significantly benefiting the energy industry of Texas.”
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