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Bechtel, Fluor, McDermott Receive Invitations to Bid on Rio Grande
LNG EPC Contract
NextDecade Corporation (“NextDecade”) (NASDAQ: NEXT) announced today a
status update regarding engineering, procurement, and construction
(“EPC”) services for its Rio Grande LNG project (“RGLNG”) in South Texas.
As previously disclosed, NextDecade and McDermott International, Inc.
(“McDermott”) planned to sign a lump-sum turnkey (“LSTK”) EPC contract
for the construction of RGLNG by the end of 2Q 2018. NextDecade and
McDermott have agreed not to execute an EPC contract for the
construction of RGLNG. NextDecade and McDermott believe 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 this review,
NextDecade issued formal invitations to bid to Bechtel Corporation, to
Fluor Corporation, and to McDermott. The McDermott invitation stipulates
it shall secure a joint venture partner.
“Our focus remains on selecting an EPC contractor that shares our
commitment to safety and is technically and financially capable of
successfully delivering the Rio Grande LNG project,” said Matt
Schatzman, NextDecade’s President and Chief Executive Officer. “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.
About NextDecade Corporation
NextDecade is an LNG development company focused on LNG export projects
and associated pipelines in Texas. NextDecade intends to develop a
portfolio of LNG projects, including the 27 mtpa Rio Grande LNG export
facility in Brownsville, Texas and the 4.5 Bcf/d Rio Bravo Pipeline that
would transport natural gas from the Agua Dulce area to Rio Grande LNG.
NextDecade’s common stock is listed on the Nasdaq Capital Market under
the symbol “NEXT.” NextDecade is headquartered in The Woodlands, Texas.
Located at the Port of Brownsville in South Texas, NextDecade’s Rio
Grande LNG project is expected to be a leader among second wave U.S. LNG
projects. NextDecade believes its customers and shareholders will
benefit from the project’s experienced leadership, proven approach, and
optimal location. NextDecade’s technology selections are expected to
foster operational reliability and afford NextDecade’s customers access
to reliable, low-cost, abundant natural gas from the Permian Basin,
Eagle Ford Shale, and other basins.
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the
meaning of U.S. federal securities laws. The words “believe,” “expect,”
“intend,” “plan,” “potential,” and similar expressions are intended to
identify forward-looking statements, and these statements may relate to
the business of the Company and its subsidiaries. These statements have
been based on the Company’s current assumptions, expectations, and
projections about future events and involve a number of known and
unknown risks, which may cause actual results to differ materially from
expectations expressed or implied in the forward-looking statements.
These risks include uncertainties about the Company’s Rio Grande LNG and
Rio Bravo pipeline projects and other matters discussed in the “Risk
Factors” section of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2017 and other subsequent reports filed with the
Securities and Exchange Commission, all of which are incorporated herein
Any development of the projects remain contingent upon completing
required commercial agreements; acquiring all necessary permits and
approvals; securing all financing commitments and potential tax
incentives; achieving other customary conditions; and making a final
investment decision to proceed. The forward-looking statements in this
press release speak as of the date of this release. Although the Company
believes that the expectations reflected in these forward-looking
statements are reasonable, the Company can give no assurance that the
expectations will prove to be correct. The Company may from time
to time voluntarily update its prior forward-looking statements,
however, it disclaims any commitment to do so except as required by
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