EPC contracts for Rio Grande LNG terminal

Rio Grande LNG terminal The EPC contracts mean Bechtel can commence construction of the first phase of Rio Grande LNG with either two or three trains. Credit: NextDecade

NextDecade Corporation has signed two contracts with Bechtel Oil, Gas and Chemicals for the engineering, procurement, and construction (EPC) of its planned Rio Grande LNG export terminal at the Port of Brownsville in Texas.

The lump-sum turnkey (LSTK) EPC contracts are for the first phase of the Rio Grande LNG project, which consists of three liquefaction trains, two 180,000 cubic metre storage tanks and two marine berths totalling US$9.565bn. Each liquefaction train is expected to have capacity up to 5.87m tonnes per annum of LNG, which would generate an EPC cost of approximately US$543 per tonne for the first three trains.


“We are pleased to be working with Bechtel, who is responsible for constructing about 30 percent of the world’s LNG capacity,” said Matt Schatzman, NextDecade’s president and CEO. “Bechtel’s extensive experience developing LNG projects on the U.S. Gulf Coast, along with our advantaged site and technology choices, including Air Products C3MR and Baker Hughes GE rotating equipment, is expected to enable NextDecade – in just the first three trains – to have the lowest cost per ton greenfield LNG project built on the U.S. Gulf Coast under a fully wrapped lump-sum turnkey EPC contract.”

The EPC contracts mean Bechtel can commence construction of the first phase of Rio Grande LNG with either two or three trains.

NextDecade anticipates making a positive final investment decision on up to three trains of the project at the end of Q3 2019 and commencing operations in 2023.

Two other projects, Texas LNG and Annova LNG , are also undergoing approval to be built and operated at the Port of Brownsville.



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