NextDecade Taps Baker Hughes for Rio Grande LNG Expansion

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NextDecade Taps Baker Hughes for Rio Grande LNG Expansion

NextDecade Corp. and Baker Hughes Co. have signed a deal for the latter to provide its gas turbine and refrigerant compressor technology for the next five trains of Rio Grande LNG. Baker Hughes has already been contracted to supply refrigerant compressors and gas turbines for the first phase of the Brownsville, Texas project. Phase 1 […]

NextDecade Corp. and Baker Hughes Co. have signed a deal for the latter to provide its gas turbine and refrigerant compressor technology for the next five trains of Rio Grande LNG.

Baker Hughes has already been contracted to supply refrigerant compressors and gas turbines for the first phase of the Brownsville, Texas project. Phase 1 will have three trains with a total nameplate capacity of about 18 million metric tons per annum. Construction is being implemented by Bechtel Energy Inc.

“Utilizing Baker Hughes’ industry-leading rotating equipment and their maintenance services is critical to ensuring the Rio Grande LNG Facility operates efficiently and reliably”, Matt Schatzman, chair and chief executive of NextDecade, said in a joint statement by the companies.

“We look forward to continuing our collaboration with Baker Hughes as we progress our plans to make the Rio Grande LNG Facility one of the largest LNG production and export facilities in the world”.

The statement said, “NextDecade is making excellent progress on commercializing Rio Grande LNG Trains 4 and 5”.

“The Company expects to make positive final investment decisions and commence construction on Trains 4 and 5 and related infrastructure at the Rio Grande LNG Facility, subject to, among other things, maintaining requisite governmental approvals, finalizing and entering into EPC [engineering, procurement and construction] contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure”, it said.

“NextDecade is developing and beginning the permitting process for Trains 6 through 8”, the statement added.

Only trains 1-5 have the required approvals from United States authorities. NextDecade has farmed out stakes in the first three trains and these partners have options to invest in trains 4 and 5. Trains 6-8 are wholly owned by NextDecade, according to a business update by the company February 28.

It said in that update, “We plan to pre-file an application with the Federal Regulatory Energy Commission (FERC) for Train 6 this year”. NextDecade expects a full FERC application for train 6 early 2026.

“Trains 7 and 8 are being developed on the site outside of the existing levee”, it said. “Additionally, we expect to explore options for the development of up to two additional trains at our site beyond Train 8”.

On July 12, 2023, NextDecade announced a final investment decision on Phase 1, earmarking $18.4 billion then. The project had been planned to have a carbon capture component. However, NextDecade said August 20, 2024, it withdrew its permit application to build the emission mitigation component.

At full operation Rio Grande LNG’s capacity would be enough to heat and cool the equivalent of nearly 34 million households yearly, according to a factsheet published online by NextDecade.

Rio Grande LNG has secured a permit to export to countries with no free trade agreement (FTA) with the U.S. through 2050, extended from an earlier 20-year authorization, according to a decision by the Department of Energy (DOE) October 21, 2020. The authorization requires Rio Grande LNG to start export February 2027.

Rio Grande LNG also holds a 30-year authorization to export to nations with an FTA with the U.S., according to a DOE decision issued August 17, 2016.

However, on August 6, 2024, the Court of Appeals for the D.C. Circuit vacated the FERC’s permit for Rio Grande LNG because the commission had not issued a supplemental Environmental Impact Statement in reauthorizing the project, according to NextDecade.

On October 21, 2024, NextDecade filed a petition for rehearing with the court.

On September 13, 2024, FERC issued notices of intent to prepare supplemental Environmental Impact Statements on Rio Grande LNG, the Rio Bravo pipeline and the Texas LNG terminal projects.

NextDecade said in its business update last month, “The Court’s decision will not be effective until the Court has issued its mandate, which is not expected to occur until after the appeals process has been completed”.

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