NextDecade said that that a final investment decision (FID) for its proposed Rio Grande LNG project would be delayed until the second half of the year.
NextDecade said that a final investment decision (FID) for its proposed Rio Grande LNG export project would be delayed until the second half of the year. The project has been twice delayed since 2020 and the operator was originally expected to take the FID in the fourth quarter of 2019 with start producing LNG in 2023.
According to the
Global LNG Database®:
The Rio Grande project to be built near Brownsville in Texas would produce 11 MMT/Y of LNG in the first phase via two liquefaction trains. It would also include the capture and storage of more than 5 MMT/Y of carbon dioxide.
On 8 May 2020, NextDecade warned investors that market disruptions from the coronavirus pandemic could further delay a final investment decision for its Rio Grande LNG export project and harm the developer's ability to sustain its operations as it would not be even able to issue its quarterly report on time.
On 8 Mar. 2021, NextDecade said that it anticipates achieving a final investment decision on a minimum of two trains at Rio Grande LNG in 2021.
Several US LNG projects have been delayed as low prices from coronavirus-induced demand destruction caused buyers to back away from signing long-term supply contracts, Reuters reported.
According to the
Global LNG Contracts Database, NextDecade has already sold just 2 MMT/Y of LNG from Rio Grande project under a 20 years binding contract with Shell in April 2019. The contract was contingent on Rio Grande taking FID.
Meanwhile, Sierra Club environmental group has said that it “will continue to fight to ensure that this project is never built. NextDecade should accept reality and cancel this disastrous project once and for all.”
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