NextDecade Completes Evaluation of Galveston Bay LNG Site
January 29 2021 - 5:00PM
Business Wire
NextDecade Corporation (NextDecade or the Company) (NASDAQ:
NEXT) today announced that the Company has completed an evaluation
of the Galveston Bay LNG site and determined that the site in Texas
City is not suitable for development of an LNG facility and related
infrastructure and utilities.
The U.S. Army Corps of Engineers (USACE), Galveston District,
has advised that a portion of the Galveston Bay LNG site is under
Federal Navigation Servitude and serves as an active Dredged
Material Placement Area (DMPA) for the Texas City Ship Channel
Federal Project. The Galveston Bay LNG project cannot be
constructed without USACE requesting that Congress – via the Water
Resources Development Act or other legislation – authorize the
release of its constitutional right of Navigation Servitude over
this DMPA.
On account of the potential for prolonged uncertainty around the
prospect of release of Federal Navigation Servitude by USACE,
NextDecade has elected to forfeit the Galveston Bay LNG site and
will no longer make lease payments to the site’s landholders, the
Texas General Land Office and the City of Texas City. Additionally,
NextDecade has informed the Federal Energy Regulatory Commission
(FERC) of its intent to withdraw Galveston Bay LNG from FERC
pre-filing proceedings and cease all related activities. The
Company has also requested that the U.S. Department of Energy
terminate its June 2018 authorization for export of LNG from
Galveston Bay LNG.
“While it is unfortunate that the Galveston Bay LNG site is not
viable for large-scale infrastructure development, this
determination only further enhances the value of – and the need for
– NextDecade’s world-class Rio Grande LNG project in the Port of
Brownsville,” said Matt Schatzman, NextDecade’s Chairman and Chief
Executive Officer. “Since 2015, NextDecade’s development activities
have been acutely focused on delivering Rio Grande LNG and
developing the largest LNG export solution linking Permian Basin
and Eagle Ford Shale natural gas to the rapidly tightening global
LNG market.”
The circumstances of Galveston Bay LNG have no impact on
NextDecade’s Rio Grande LNG project in the Port of Brownsville,
where late-stage development activities are ongoing. NextDecade
continues to work on remaining commercial agreements needed to
achieve a final investment decision on the Rio Grande LNG project
in 2021.
About NextDecade Corporation
NextDecade Corporation (NextDecade) is a liquefied natural gas
(LNG) company focused on delivering the 27 mtpa Rio Grande LNG
export facility in South Texas. Rio Grande LNG will be the largest
U.S. LNG export solution linking Permian Basin and Eagle Ford Shale
natural gas to the global LNG market. Utilizing proven carbon
capture and storage technology and proprietary processes,
NextDecade is targeting carbon neutrality at 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;
NextDecade’s final investment decision (“FID”) in the construction
and operation of a LNG terminal at the Port of Brownsville in
southern Texas (the “Terminal”) and the timing of that decision;
the successful completion of the Terminal by third-party
contractors and an approximately 137-mile pipeline to supply gas to
the Terminal being developed by a third-party; NextDecade’s ability
to secure additional debt and equity financing in the future to
complete the Terminal; the accuracy of estimated costs for the
Terminal; statements that the Terminal, when completed, will have
certain characteristics, including amounts of liquefaction
capacities; the development risks, operational hazards, regulatory
approvals applicable to the Terminal’s and the third-party
pipeline's construction and operations activities; 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; changes
in legislation and regulations relating to the LNG industry,
including environmental laws and regulations that impose
significant compliance costs and liabilities; the 2019 novel
coronavirus pandemic and its impact on NextDecade’s business and
operating results, including any disruptions in NextDecade’s
operations or development of the Terminal and the health and safety
of NextDecade’s employees, and on NextDecade’s customers, the
global economy and the demand for LNG; risks related to doing
business in and having counterparties in foreign countries;
NextDecade’s ability to maintain the listing of its securities on a
securities exchange or quotation medium; 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, 2019 and other subsequent reports filed
with the Securities and Exchange Commission, all of which are
incorporated herein by reference.
Additionally, any development of the Terminal 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210129005526/en/
Patrick Hughes phughes@next-decade.com +1 (832) 209-8131
NextDecade (NASDAQ:NEXT)
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