Thursday, September 6, 2018

NextDecade updates EPC status for Rio Grande LNG project in Texas

KUALA LUMPUR, Sept 5 (Bernama) -- NextDecade Corporation announced a status update regarding engineering, procurement and construction (EPC) services for its Rio Grande liquefied natural gas (LNG) project (RGLNG) in South Texas.

Headquartered in The Woodlands, NextDecade is an LNG development company focused on LNG export projects and associated pipelines in Texas.

As previously disclosed, NextDecade and McDermott International Inc planned to sign a lump-sum turnkey (LSTK) EPC contract for the construction of RGLNG by the end of 2Q 2018, a statement said.

Both companies have agreed not to execute an EPC contract for the construction of RGLNG. 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 RGLNG’s projected commercial operations date, as early as 2023, NextDecade has launched a competitive EPC bid process. This process will provide NextDecade with front-end engineering and design (FEED) verification and a final LSTK EPC contract based on the existing RGLNG FEED, which was completed in late 2017 by McDermott.

NextDecade received expressions of interest (EOI) from multiple EPC contractors to participate in the competitive EPC process. NextDecade reviewed the EOIs against a series of selection criteria to ensure a rigorous competitive EPC bid process.

At the conclusion of the review, NextDecade issued formal invitations to bid to Bechtel Corporation, Fluor Corporation and McDermott. The McDermott invitation stipulates it shall secure a joint venture partner.

NextDecade’s President and Chief Executive Officer, Matt Schatzman said: “We believe RGLNG’s outstanding location in the Port of Brownsville, access to abundant gas resources in the Permian Basin and Eagle Ford Shale, and decision to use proven technologies – including the APCI C3MR process, Baker Hughes GE rotating equipment, and ABB automation and electrical solutions – will lead to one of the most competitive greenfield LNG export terminals in the U.S.”

NextDecade anticipates executing a final LSTK EPC contract in 3Q 2019 prior to a final investment decision on the Rio Grande LNG project. More details on www.next-decade.com

--BERNAMA

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