NextDecade Corporation has provided a comprehensive update on its developmental and strategic activities for the fourth quarter of 2023 and early 2024, outlining significant progress in various key areas.
CEO Perspective
Matt Schatzman, chairman and CEO of NextDecade, reiterated the company’s commitment to maximising long-term value for shareholders through efficient execution of its business strategy. He emphasised the focus on the safe, timely, and budget-conscious construction of Phase 1 at the Rio Grande LNG Facility, alongside a positive final investment decision for the expansion capacity to meet growing global demand for LNG.
Project Development and Construction
Under the EPC contracts with Bechtel Energy Inc., Phase 1 progress for Trains 1, 2, and common facilities, as well as Train 3, is proceeding in line with schedules. Notable milestones include significant completion percentages for engineering, procurement, and construction activities across the Rio Grande LNG Facility.
Strategic and commercial initiatives
NextDecade has initiated front-end engineering and design and EPC contract processes for Train 4, alongside discussions with potential LNG buyers. Progress in the EPC contracting and commercial fronts aligns with the target of reaching a positive FID for Train 4 in the latter half of 2024.
Financial Updates
Rio Grande LNG’s financial structuring includes reducing exposure to interest rate movements and securing financing through senior secured loans and revolving credit facilities. Recent financial transactions, including the issuance of senior secured notes and the syndication of bank credit facility commitments, bolster the funding framework for Phase 1 construction.
Rio Grande LNG Facility Overview
Construction and development activities at the Rio Grande LNG Facility are progressing, with Phase 1 encompassing three liquefaction trains and associated infrastructure. Recent construction efforts include foundation concrete pours, piling activity for LNG tanks, and shoreline restoration programmes.
Future expansion plans
NextDecade targets a positive FID for Train 4 and subsequent expansion projects, leveraging partnerships and financial mechanisms to support growth initiatives. TotalEnergies SE holds LNG purchase options, further bolstering market prospects for future train expansions.
Investor Presentation and About NextDecade Corporation
NextDecade has released an updated investor presentation concurrently with this announcement, providing insights into its strategic roadmap and operational developments. As an energy company committed to advancing sustainable LNG and carbon capture solutions, NextDecade aims to contribute to a net-zero future while delivering value to stakeholders.
For more information visit www.next-decade.com.
