NextDecade’s Rio Grande LNG Receives Non-FTA Export Authorization
February 10 2020 - 5:12PM
Business Wire
NextDecade Corporation (NextDecade) (NASDAQ: NEXT) announced
today that the U.S. Department of Energy (DOE) has issued an order
granting authorization to export liquefied natural gas (LNG) from
its Rio Grande LNG facility to non-free trade agreement (non-FTA)
countries.
In combination with a free trade agreement (FTA) order
previously issued in August 2016, NextDecade is now authorized to
export LNG equivalent to 1,318 billion cubic feet of natural gas
per year from Rio Grande LNG to both FTA and non-FTA countries.
In a press release issued earlier today announcing the order,
DOE said, “Record levels of natural gas production in the United
States continue to enhance global energy security while providing
domestic benefits, including infrastructure development and job
creation. If built to capacity, the Rio Grande LNG project,
including the connected Rio Bravo pipeline, is expected to create
over 5,000 jobs during peak construction and represents
infrastructure investment in excess of $15 billion.”
“We greatly appreciate the Energy Department’s diligent review
of our Rio Grande LNG project, as well as Secretary Brouillette’s
continued support for the export of abundant and reliable U.S.
energy to our partners and allies,” said Matt Schatzman,
NextDecade’s Chairman and Chief Executive Officer. “This is another
significant milestone for our Rio Grande LNG project, which will
play a critical role in linking natural gas from the Permian Basin
and Eagle Ford Shale to the global LNG market, providing countries
around the world access to cleaner energy.”
NextDecade achieved another regulatory milestone in November
2019, when the Federal Energy Regulatory Commission (FERC) issued
an order authorizing the siting, construction, and operation of Rio
Grande LNG and the associated Rio Bravo Pipeline. On January 23,
2020, the FERC issued its final order denying rehearing requests on
Rio Grande LNG and Rio Bravo Pipeline.
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.
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