NextDecade Corporation and Baker Hughes Collaborate on Rio Grande LNG Facility

Houston-headquartered energy player NextDecade Corporation has recently announced two significant deals with compatriot energy technology giant Baker Hughes. These agreements aim to enhance the development and maintenance of NextDecade’s liquefied natural gas (LNG) terminal in Texas.

The first agreement involves a framework deal for Baker Hughes to provide gas turbine and refrigerant compressor technology for the Rio Grande LNG facility. The second agreement is a contractual services deal for Baker Hughes to perform maintenance services for trains 4-8 at the future terminal.

NextDecade’s Chairman and CEO, Matt Schatzman, emphasized the importance of leveraging Baker Hughes’ expertise in rotating equipment and maintenance services to ensure the efficient and reliable operation of the Rio Grande LNG facility. The collaboration between the two companies is crucial as NextDecade aims to establish the terminal as one of the largest LNG production and export facilities globally.

Expansion Plans for Rio Grande LNG Facility

The Rio Grande LNG terminal, located at the Port of Brownsville, Texas, was initially designed to have a capacity of 27 million tonnes per annum (mtpa). However, with the addition of new trains, the terminal’s capacity is set to increase significantly.

NextDecade is currently advancing its commercialization efforts for Trains 4 and 5 at the facility. The company anticipates making positive final investment decisions and commencing construction on these trains once all necessary conditions are met, including regulatory approvals, finalizing contracts, securing financing, and establishing commercial arrangements.

Furthermore, NextDecade is also progressing on the development of Trains 6 through 8, which are expected to further boost the firm’s liquefaction capacity by approximately 18 mtpa. Once completed, the Rio Grande LNG facility’s total liquefaction capacity is projected to reach around 48 mtpa.

Advantages of the Rio Grande LNG Site

NextDecade highlighted the strategic advantages of the Rio Grande LNG site, including its proximity to abundant natural gas resources in the Permian Basin and Eagle Ford shale, access to an uncongested waterway, and the region’s favorable weather conditions compared to other U.S. Gulf Coast areas.

With ample space available at the site for up to ten liquefaction trains, NextDecade is poised to capitalize on the growing demand for LNG and solidify its position as a key player in the global energy market.