I would like to share the latest news on the Rio Grande LNG project (RGLNG). We remain focused on developing the project and moving towards expected final investment decision (FID) in 2019.
Earlier this month, NextDecade issued press releases that feature several updates on our company and RGLNG. In addition to the below-referenced announcements, you can find further information in our latest corporate presentation, which is available on our website. [CLICK HERE]
EPC Update: As previously disclosed, we had planned to sign a lump-sum turnkey EPC contract with McDermott by the end of 2Q 2018. We decided not to execute an EPC contract as NextDecade and McDermott believe McDermott will have to secure a joint venture partner in order to successfully execute and financially guarantee an LNG project of RGLNG’s size and scope. To maintain our projected commercial operations date, we have launched a competitive bid process that will result in a final LSTK EPC contract based on our existing RGLNG front-end engineering and design (FEED), which was completed last year. We reviewed expressions of interest against a series of selection criteria to ensure a rigorous competitive EPC bid process and, at the conclusion of this review, issued formal invitations to bid to Bechtel, Fluor, and McDermott. The McDermott invitation requires a joint venture partner. This EPC process, which is already underway, will ensure our contractor has the technical and financial strength to deliver the RGLNG project with a competitively priced, fully wrapped LSTK EPC contract prior to a final investment decision on RGLNG. [CLICK HERE]Information regarding the competitive EPC process is also included on page 5 of the corporate presentation we issued last week.
FERC Update: On August 31, 2018, NextDecade received a Notice of Schedule (NoS) from the Federal Energy Regulatory Commission (FERC). The NoS indicates that a final environmental impact statement will be issued on April 26, 2019, and carries a federal authorization decision deadline of July 25, 2019. Importantly, the NoS alleviates uncertainty and, along with FERC’s new policies to streamline the review process for LNG projects, confirms that no single second-wave project will have a regulatory advantage. [CLICK HERE]
Management Update: René van Vliet, our Chief Operating Officer and Member of the board of directors, will retire effective October 1, 2018. René will serve the company as an advisor until year-end. A global search is underway for a new COO, and we expect to conclude that process by year-end. RGLNG Project Manager Ivan van der Walt, who has nearly 25 years of experience in the oil and gas industry, will oversee all aspects of project development and will report directly to Matt Schatzman, our President & CEO, until a new COO is appointed. [CLICK HERE]
This is an exciting time for the Rio Grande LNG project and the Rio Grande Valley. We look forward to our continued progress together. If you would like a presentation or have questions about the project, feel free to reach out to me.
Eduardo A. Duran Community Engagement Manager, Rio Grande LNG
NextDecade Corporation 3 Waterway Square Place, Suite 400 The Woodlands, Texas 77380 United States of America