NextDecade, the company behind the Rio Grande LNG project, has delayed the FID of its LNG facility from the end of 2021 to the second half of 2022.
Rio Grande LNG is a massive 27 MTPA export facility, anticipated to be built in Brownsville Texas. The project is currently planning to add a CCS facility next door to the plant. Its goal is to produce the “lowest lifecycle (GHG) LNG on a free-on-board basis…[and become]… the greenest LNG project in the world.”
However, in order for this dream to become a reality, the project will need to find additional long-term supply agreements. The project currently has one sales and purchase agreement (SPA) established with Shell for 2 MTPA.
NextDecade has reported that it is working to secure additional SPAs with European and Asian buyers. It will need to do so in order to successfully prove that there is sufficient demand for the plant and move into the FID stage.
Source: Gelber and Associates