NextDecade Nears First LNG Output at Rio Grande Terminal

NextDecade is preparing to start LNG production at its Rio Grande facility near Brownsville, Texas, early next year. The 1,000-acre site along the Brownsville Ship Channel will become the southernmost LNG export terminal in the state. The company plans to add one liquefaction train per year through 2036.

The first three trains are scheduled for completion by early 2029 and will supply power for more than 20 million households. Ten trains are ultimately planned, with half already under construction.

NextDecade received federal approval in early April to move to round-the-clock construction with contractor Bechtel. The first phase is valued at $18 billion. The site is located roughly 160 miles south of Corpus Christi and a few miles from SpaceX Starbase. It sits outside the main U.S. LNG corridor that runs from Corpus Christi to south of New Orleans.

The U.S. became the world’s largest LNG exporter after the shale gas boom began roughly 20 years ago. The country shipped its first LNG cargo in early 2016. Current U.S. leaders include Cheniere Energy, Sempra, and Venture Global. Other projects under development include Qatar and Exxon Mobil’s Golden Pass near Port Arthur, Woodside Energy’s Louisiana LNG, and Glenfarne and ConocoPhillips’ Alaska LNG.

She died in 2019 at age 58. Matt Schatzman joined in 2017, became CEO in 2018, and has led the project through permitting delays, environmental lawsuits, and the pandemic. He said the company is ahead of schedule despite earlier skepticism about building at the southern tip of Texas.

Schatzman noted that global electricity demand is rising nearly 4 percent annually due to population growth, electrification, and data centers. He said U.S. LNG offers customers flexibility and relatively low cost compared with other supply options.