NextDecade to decide on Rio Grande LNG project FID this year

US-based liquefied natural gas (LNG) development company NextDecade reportedly said that it still plans to make a final investment decision (FID) this year on its proposed Rio Grande LNG export plant.

The Rio Grande liquefied natural gas (RGLNG) export facility is located in Brownsville, Texas, US.

The delay is due to decreased energy demand as a result of the coronavirus outbreak, according to Reuters.

The company had earlier made an announcement in a filing with US securities regulators, saying that it would delay the release of its Q1 2020 report until around 18 May which was originally scheduled for 11 May.

NextDecade expects to start commercial operations of the LNG plant in 2023.

The project will comprise three liquefaction trains, two 180,000m³ storage tanks, and two marine berths.

According to the news agency, if NextDecade delays the FID, Rio Grande would join a huge list of North American LNG export projects which were delayed amid government lockdowns to contain the spread of coronavirus that shred the global demand for natural gas as well as other forms of energy.

Reuters quoted NextDecade spokeswoman Toni Beck as saying in an emailed statement: “The company did not provide an update on our project’s FID timing.”

In February this year, NextDecade and energy transportation firm Enbridge signed an agreement to jointly develop the Rio Bravo Pipeline in Texas.

In May last year, NextDecade awarded an engineering, procurement, and construction (EPC) contract valued at over $9.5bn to Bechtel for the first phase of the Rio Grande LNG project.