FERC pre-filling process initiated for Rio Grande LNG
The independent Texas-based company Next Decade LLC (NextDecade) started the pre-filling process in view to obtain the Federal Energy Regulatory (FERC) approval for its liquefied natural gas (LNG) Rio Grande LNG export terminal project to be located at the Port of Brownsville on the Texas Gulf Coast, at the boarder between Mexico and USA.
Established in 2010, NextDecade mobilized experienced management to create one of the most dynamic company of the US LNG value chain.
Surfing on the shale gas glut, with a natural gas production continuing to grow, US generate series of newly established midstream companies to transport, store and export LNG.
Among the baby-boom of these LNG players, NextDecade intends to run its projects on fast-tract in order to improve return on investments for its stakeholders and financial partners.
This fats-track approach starts with the close connection that NextDecade maintain with gas suppliers on one end and gas off-takers on the other end to secure the financing of the project.
It also applies to the Rio Grande LNG project management where all the critical steps from site selection, FERC approval, then front end engineering and design (FEED) and finally the engineering, procurement and construction (EPC) phase up to the commissioning and start-up are thought from start to be implemented on fast-track.
In March 2015, NextDecade took an option to double the site acreage in Port of Brownsville in view to double the original size of Rio Grande LNG project.
On the same period, NextDecade submitted its application to FERC to initiate the pre-filling process.
In April 2015, FERC started Rio Grande LNG project pre-filling process with NexDecade.
To do so, NextDecade completed the pre-front end engineering and design (pre-FEED) work.
Rio Bravo to pipe gas in NextDecade Rio Grande LNG
To be located in Brownsville, the Rio Grande LNG project will require the construction of a new gas pipeline to supply the natural gas from the Agua Dulce hub to Rio Grande LNG Export Terminal project.
With approximately 200 kilometers length, the so-called Rio Bravo Pipeline project is also subject to the FERC approval in the same way as the Rio Grande LNG Export Terminal project.
To be land-based along the Brownsville Ship Channel, the Rio Grande LNG project should require $8 billion capital expenditure covering the construction of:
– Gas treatment plant
– 6 LNG Trains
– LNG storage tanks farm
– Berths to host LNG Carrier
– Offloading facilities
– Offsites and utilities.
The Rio Grande LNG Trains should have a designed capacity of 4.5 million tonnes per year (t/y).
Because of its size, the Rio Grande LNG project should be developed in different phases.
NexDecade expects the first two LNG Trains of the Rio Grande LNG project to come into production by 2020.
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