Rio Grande LNG export project : NextDecade gets DOE’s non-FTA export authorization

Rio Grande LNG export project : NextDecade Corporation has secured authorization from the US Department of Energy (DOE) for export of liquefied natural gas (LNG) from its Rio Grande LNG facility to non-free trade agreement (non-FTA) nations.

Along with a previously issued free trade agreement (FTA) order in August 2016, NextDecade now has the right to export LNG equivalent to 1,318 billion cubic feet of natural gas per year from the Rio Grande LNG project to FTA and also non-FTA countries.

While issuing its latest order, the DOE stated: “Record levels of natural gas production in the United States continue to enhance global energy security while providing domestic benefits, including infrastructure development and job creation. If built to capacity, the Rio Grande LNG project, including the connected Rio Bravo pipeline, is expected to create over 5,000 jobs during peak construction and represents infrastructure investment in excess of $15 billion.”

In November 2019, NextDecade secured authorization from the US Federal Energy Regulatory Commission (FERC) for the siting, construction, and operation of the Rio Grande LNG export project and the associated Rio Bravo Pipeline. Last month, the FERC issued its final order which denied rehearing requests on the Rio Grande LNG project and Rio Bravo Pipeline.

Matt Schatzman – NextDecade Chairman and CEO said: “We greatly appreciate the Energy Department’s diligent review of our Rio Grande LNG project, as well as Secretary Brouillette’s continued support for the export of abundant and reliable U.S. energy to our partners and allies.

“This is another significant milestone for our Rio Grande LNG project, which will play a critical role in linking natural gas from the Permian Basin and Eagle Ford Shale to the global LNG market, providing countries around the world access to cleaner energy.”

To be developed in multiple phases, the $9.56bn Rio Grande LNG export project will have an overall capacity of 27 million tons per annum (mtpa).

NextDecade Rio Grande LNG project in Texas. Photo courtesy of Business Wire.