HOUSTON, Feb. 13, 2020 /CNW/ - NextDecade Corporation
(NextDecade) (NASDAQ: NEXT) and Enbridge Inc. (Enbridge) (TSX: ENB)
(NYSE: ENB) announced today that they have entered into a
definitive agreement whereby Enbridge will acquire Rio Bravo
Pipeline Company, LLC (RBPL) from NextDecade for a cash
purchase price not to exceed $25
million, with $15 million paid
at closing and the balance paid upon NextDecade's reaching a
positive final investment decision (FID) on its Rio Grande LNG
export facility in the Port of Brownsville, Texas.
Upon closing of the transaction, Enbridge will own one hundred
percent of RBPL and assume all responsibility for the development,
financing, construction, and operations of the Rio Bravo Pipeline.
NextDecade will continue to be responsible for the development,
financing, construction, and operations of its Rio Grande LNG
export facility.
In addition, Enbridge and NextDecade have negotiated a precedent
agreement, to be executed at closing, whereby NextDecade will
retain its rights to the natural gas firm transportation capacity
on the Rio Bravo Pipeline for a term of at least twenty years to
supply NextDecade's Rio Grande LNG export facility.
"This agreement with Enbridge further enhances our commitment to
our global LNG customers, natural gas suppliers and other
stakeholders to deliver our Rio Grande LNG project on time and on
budget," said Matt Schatzman,
NextDecade's Chairman and Chief Executive Officer. "As one of
North America's leading energy
infrastructure companies, Enbridge brings extensive natural gas
pipeline experience to execute the Rio Bravo Pipeline, and we are
delighted to have them involved in supporting the delivery of our
Rio Grande LNG project."
"We are excited to move forward with this transaction," said
Bill Yardley, Enbridge's Executive
Vice President and President of Gas Transmission and Midstream.
"Enbridge's commitment to the development of the Rio Bravo Pipeline
in support of NextDecade's Rio Grande LNG project further
strengthens our ability to serve the expanding LNG export market
and fits squarely within our low-risk business model."
The Rio Bravo Pipeline is designed to transport up to 4.5
billion cubic feet per day of natural gas from the Agua Dulce supply area to NextDecade's Rio
Grande LNG project in Brownsville,
Texas. In November 2019, the
Federal Energy Regulatory Commission (FERC) issued an order
authorizing the siting, construction, and operation of NextDecade's
Rio Grande LNG project and the Rio Bravo Pipeline. In January 2020, FERC issued a final order on
rehearing for the Rio Grande LNG project and the Rio Bravo
Pipeline.
The agreement has been approved by the Boards of Directors of
both companies. Subject to the satisfaction of certain conditions,
the transaction is expected to close in the first quarter of
2020.
About NextDecade Corporation
NextDecade is a LNG development company focused on LNG export
projects and associated pipelines
in Texas. NextDecade intends to develop the largest
LNG export solution linking Permian Basin associated gas
to the global LNG market, creating value for producers, customers,
and stockholders. Its portfolio of LNG projects includes 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
Stock Market under the symbol "NEXT." NextDecade is
headquartered in Houston, Texas. For more information,
visit www.next-decade.com.
NextDecade Forward-Looking
Information
This press release contains forward-looking statements within the
meaning of U.S. federal securities laws. The words "anticipate,"
"contemplate," "estimate," "expect," "project," "plan," "intend,"
"believe," "may," "might," "will," "would," "could," "should," "can
have," "likely," "continue," "design" and other words and terms of
similar expressions are intended to identify forward-looking
statements, and these statements may relate to the business
of NextDecade and its subsidiaries. These statements have
been based on NextDecade's current assumptions, expectations, and
projections about future events and trends 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
progress in the development of NextDecade's LNG liquefaction and
export projects and the timing of that progress; government
approval of construction and operation of NextDecade's Rio Grande
LNG and Rio Bravo Pipeline projects terminal at the Port of
Brownsville in southern Texas (the "Terminal") and
an associated 137-mile pipeline to supply gas to the Terminal (the
"Pipeline" and together with the Terminal, the "Project") and the
timing of that approval; the successful completion of the Project
by third-party contractors; our ability to secure additional debt
and equity financing in the future to complete the Project; the
accuracy of estimated costs for the Project; statements that the
Project, when completed, will have certain characteristics,
including amounts of liquefaction capacities; NextDecade's
anticipated competitive advantage and technological innovation
which may render its anticipated competitive advantage obsolete;
the global demand for and price of natural gas (versus the price of
imported LNG); the availability of LNG vessels worldwide;
negotiations for the Terminal site lease and right-of-way options
for the Pipeline route; changes in legislation and regulations
relating to the LNG industry, including environmental laws and
regulations that impose significant compliance costs and
liabilities; risks related to doing business in and having
counterparties in foreign countries; changes adversely affecting
the business in which NextDecade is engaged; management
of growth; general economic conditions; NextDecade's ability to
generate cash; compliance with environmental laws and regulations;
the result of future financing efforts and applications for
customary tax incentives; and other matters discussed in the "Risk
Factors" section of NextDecade's Annual Report on Form 10-K for the
year ended December 31, 2018 and other subsequent reports
filed with the Securities and Exchange Commission, all of
which are incorporated herein by reference.
Additionally, any development of the Project remains
contingent upon completing required commercial agreements,
acquiring all necessary permits and approval, 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 NextDecade believes that the expectations
reflected in these forward-looking statements are reasonable, it
can give no assurance that the expectations will prove to be
correct. NextDecade 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.
About Enbridge Inc.
Enbridge Inc. is a
leading North American energy infrastructure company. We safely and
reliably deliver the energy people need and want to fuel quality of
life. Our core businesses include Liquids Pipelines, which
transports approximately 25 percent of the crude oil produced
in North America; Gas Transmission and Midstream, which
transports approximately 20 percent of the natural gas consumed in
the U.S.; and Utilities and Power Operations, which serves
approximately 3.7 million retail customers
in Ontario and Quebec, and generates approximately
1,750 MW of net renewable power in North
America and Europe. The Company's common shares trade on
the Toronto and New York stock exchanges under
the symbol ENB. For more information, visit
www.enbridge.com.
Enbridge Forward-Looking
Information
Forward-looking information, or
forward-looking statements, have been included in this press
release to provide information about Enbridge and its subsidiaries
and affiliates, including management's assessment of Enbridge and
its subsidiaries' future plans and operations. This information may
not be appropriate for other purposes. Forward-looking statements
are typically identified by words such as ''anticipate'',
''expect'', ''project'', ''estimate'', ''forecast'', ''plan'',
''intend'', ''target'', ''believe'', "likely" and similar words
suggesting future outcomes or statements regarding an outlook.
Forward-looking information or statements included in this press
release include, but are not limited to, statements with respect
to NextDecade's Rio Grande LNG and Rio Bravo Pipeline
projects terminal at the Port of Brownsville in southern Texas (the "Terminal") and an associated
137-mile pipeline to supply gas to the Terminal (the "Pipeline" and
together with the Terminal, the "Project"), including the
acquisition of RBPL by Enbridge; the benefits, risks, costs and
timing of the transaction and the Project; and the expected
capacity and characteristics of the Pipeline.
Although Enbridge believes these forward-looking statements
are reasonable based on the information available on the date such
statements are made and processes used to prepare the information,
such statements are not guarantees of future performance and
readers are cautioned against placing undue reliance on
forward-looking statements. By their nature, these statements
involve a variety of assumptions, known and unknown risks and
uncertainties and other factors, which may cause actual results,
levels of activity and achievements to differ materially from those
expressed or implied by such statements. Assumptions regarding the
expected supply of and demand for crude oil, natural gas and LNG,
and the prices of these commodities, are material to and underlie
all forward-looking statements, as they may impact current and
future levels of demand for Enbridge's services and for the
Project. Similarly, exchange rates, inflation and interest rates
impact the economies and business environments in which Enbridge
operates and may impact levels of demand for Enbridge's services
and the Project and cost of inputs and are therefore inherent in
all forward-looking statements. Due to the interdependencies and
correlation of these macroeconomic factors, the impact of any one
assumption on a forward-looking statement cannot be determined with
certainty. The most relevant assumptions associated with
forward-looking statements on announced projects and projects under
construction, including estimated completion dates and expected
capital expenditures, include the following: the impact of
customer, government and regulatory approvals on construction and
in-service schedules and cost recovery regimes; the availability
and price of labour and construction materials; the effects of
inflation and foreign exchange rates on labour and material costs;
the effects of interest rates on borrowing costs; the impact of
weather; and the ability of our joint venture partners to complete
and finance proposed projects, including the Terminal.
Enbridge's forward-looking statements are subject to risks
and uncertainties, including, but not limited to those risks and
uncertainties discussed in this press release and in Enbridge's
other filings with Canadian and United States securities
regulators. The impact of any one risk, uncertainty or factor on a
particular forward-looking statement is not determinable with
certainty as these are interdependent and Enbridge's future course
of action depends on management's assessment of all information
available at the relevant time. Except to the extent required by
applicable law, Enbridge assumes no obligation to publicly update
or revise any forward-looking statements made in this news release
or otherwise, whether as a result of new information, future events
or otherwise. All subsequent forward-looking statements, whether
written or oral, attributable to Enbridge or persons acting on
Enbridge's behalf, are expressly qualified in their entirety by
these cautionary statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Media -
NextDecade
communications@next-decade.com
+ 1 (281) 249 5453
Investors - NextDecade
ir@next-decade.com
+ 1 (832) 910 8629
Media –
Enbridge
Email: media@enbridge.com
Toll Free: (888) 992-0997
Investment Community - Enbridge
Email:
investor.relations@enbridge.com
Toll Free: (800) 481-2804
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SOURCE Enbridge Inc.