- Shell has become the first customer at NextDecade’s proposed $15 billion Rio Grande LNG export terminal at the Port of Brownsville.
- hell will buy 2 million metric tons of LNG per year from the proposed Brownsville facility starting in 2023.
- The $15 billion facilities would generate thousands of construction jobs and be capable of producing up to 27 million metric tons of LNG per year once complete.
- NextDecade has thus far, been funded by investors – similar to other LNG companies waiting on permit decisions.
According to an article puplished in chron, The liquefied natural gas arm of oil giant Shell has become the first customer at NextDecade’s proposed $15 billion Rio Grande LNG export terminal at the Port of Brownsville.
20-year sale and purchase agreement
NextDecade announced the 20-year sale and purchase agreement at the LNG 2019 conference in Shanghai on Monday night.
Under the deal, Shell will buy 2 million metric tons of LNG per year from the proposed Brownsville facility starting in 2023.
“We are honored to have Shell as the first foundation customer of our Rio Grande LNG project,” NextDecade CEO Matt Schatzman said in a statement. “Shell is not only the largest portfolio LNG company in the world, but Shell is also a recognized pioneer in the global LNG business.”
Export permission
NextDecade has already obtained a state permit but is still seeking permission from the Federal Energy Regulatory Commission to build a liquefied natural gas export terminal along the Brownsville Ship Channel.
A federal permit decision is not expected until July but if approved, the $15 billion facilities would generate thousands of construction jobs and be capable of producing up to 27 million metric tons of LNG per year once complete.
New terminals to be built
Rio Grande LNG and two similar export terminals proposed to be built at the Port of Brownsville face stiff opposition from a coalition of environmentalists, Native Americans, shrimpers, fishermen and concerned residents working under the banner of Save RGV From LNG.
Despite hundreds of comments filed in opposition to Rio Grande LNG, NextDecade has taken several steps forward including signing a power purchase agreement and a lease with the Port of Brownsville.
Funded by investors
Founded in 2010 and headquartered in downtown Houston, NextDecade employs 36 people and 11 contractors. The company reported closing 2018 with a $43.5 million loss and no revenue.
With no plants or facilities in operation, NextDecade has thus far, been funded by investors – similar to other LNG companies waiting on permit decisions. A filing with the U.S. Securities and Exchange Commission show that the Houston company is still in the black with at least $3.2 million cash on hand and another $72 million in a highly liquid short-term cash management fund.
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Source: chron
