Posted on March 11, 2019
Photo: NextDecade Corp.
In a Wednesday evening decision, the Brownsville Navigation District awarded Rio Grande LNG a 30-year lease for 984 acres of land along the north shore of the Brownsville Ship Channel.
The proposed $15 billion Rio Grande LNG export terminal at the Port of Brownsville took a major step forward after leasing nearly 1,000 acres of land along the deep South Texas waterway.
In a Wednesday evening decision, the Brownsville Navigation District awarded Rio Grande LNG a 30-year lease for 984 acres of land along the north shore of the Brownsville Ship Channel.
Financial terms were not immediately available but Port of Brownsville CEO Eddie Campirano told the Houston Chronicle that the lease greatly expands the liquefied natural gas company’s presence along the South Texas ship channel.
Rio Grande LNG had previously leased 10 acres of land that Campirano said will get rolled into the new lease if and when a final investment decision is made to build the LNG export terminal. Under the new lease, Rio Grande LNG also has two options to renew and extend the lease for periods of ten years each.
“We are pleased to have formally executed our lease agreement with the Brownsville Navigation District, and appreciate the ongoing support of Chairman Reed and the BND Commission,” NextDecade CEO Matt Schatzman said in a statement. “As we continue to advance our Rio Grande LNG project, we look forward to creating opportunities for local workers and communities across the Rio Grande Valley.”
Step Forward: NextDecade lands state permit for Rio Grande LNG project
Hours before the Brownsville Navigation District meeting, NextDecade filed its end-of-year earnings where the company reported closing 2018 with a $43.5 million loss and no revenue.
With no plants or facilities in operation, NextDecade has thus far, been funded by investors – similar to other LNG companies waiting on permit decisions. A filing with the U.S. Securities and Exchange Commission show that the Houston company is still in the black with at least $3.2 million cash on hand and another $72 million in a highly liquid short-term cash management fund.
As one of three liquefied natural gas export terminal proposed to be built at the Port of Brownsville, Rio Grande LNG and the supporting Rio Bravo Pipeline face stiff opposition from a coalition of shimpers, fishermen, environmentalists, neighbors and communities working under the banner Save RGV From LNG.
Rio Grande LNG and the Rio Bravo Pipeline have nonetheless taken some steps forward. The Texas Commission on Environmental Quality issued state permits for the two projects in December. A final permit decision from the Federal Energy Regulatory Commission is expected in July.
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If approved, NextDecade is not expecting to make a final investment decision on the project until the third quarter. The liquefied natural gas export terminal and pipeline are expected to result in more than $15 billion of private investment and create more than 5,000 construction jobs.
Founded in 2010 and headquartered in downtown Houston, NextDecade employs 36 people and 11 contractors. In addition to the Port of Brownsville project, the company is seeking permission to build the Galveston Bay LNG export terminal and the supporting Galveston Bay Pipeline.
Source: chron.com
