NextDecade Provides EPC Status Update
September 04 2018 - 8:00AM
Business Wire
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 by reference.
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 securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20180904005213/en/
NextDecadeInvestors:Patrick Hughes+1 (832)
209-8131phughes@next-decade.com
Media:Ashley Helmer+1 (281) 249-5453ahelmer@next-decade.com
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