NextDecade, Bechtel conclude pricing refresh on contracts for Rio Grande LNG

NextDecade Corp. and Bechtel Oil Gas and Chemicals Inc. completed a pricing refresh on the lump-sum turnkey engineering, procurement and construction agreements for NextDecade's planned Rio Grande LNG project.

The pricing refresh did not impact Rio Grande LNG's overall cost. The pricing in the agreements for the first three trains at the project is now valid until Dec. 31, according to a March 8 news release. The companies also agreed to extend the engineering, procurement and construction agreements until July 31, 2022.

"Our global LNG customers, feed gas suppliers and other stakeholders can have the utmost confidence in the on-time and on-budget delivery of our Rio Grande LNG project," NextDecade Chairman and CEO Matt Schatzman said.

NextDecade said it expects to make a final investment decision on a minimum of two trains at Rio Grande LNG during the year. The corporation initially planned to achieve a final investment decision on the project in 2020 but decided to postpone it due to the impacts of the COVID-19 pandemic on LNG market conditions.

Located in South Texas, the 27 million-tonne-per-year Rio Grande LNG project is designed to connect Permian Basin and Eagle Ford Shale natural gas to the global LNG market.