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Enbridge, NextDecade strike deal to develop Rio Grande LNG supply pipeline

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Enbridge, NextDecade strike deal to develop Rio Grande LNG supply pipeline

NextDecade Corp. and Enbridge Inc. entered into a nonbinding agreement for the joint development of the Rio Bravo natural gas pipeline and other associated lines in South Texas that would provide feed gas to the Rio Grande LNG project in Texas.

The terms of the memorandum of understanding would be finalized in the fourth quarter, according to a Sept. 18 news release. The Rio Bravo pipeline would carry 4.5 Bcf/d of gas from the Agua Dulce, Texas, area to the planned Rio Grande LNG export facility in Brownsville, Texas, and the companies also intend to build other gas pipelines in the area under the joint development deal.

The deal is part of Enbridge's strategy to use its project execution and permitting capabilities to contribute to the expanding U.S. LNG export industry, Enbridge President of Gas Transmission and Midstream Bill Yardley said in the release. The Brownsville location also fits well with Enbridge's existing assets, according to Yardley.

The Rio Grande LNG facility is designed to produce up to 27 million tonnes per annum of LNG. NextDecade expects to make a final investment decision on up to three liquefaction trains, or about 13.5 mtpa of capacity, in the fourth quarter, delaying the decision by as many as three months.