NextDecade Raises Additional $85 million in Pre-FID Funding for its Rio Grande LNG Project, Makes Significant Progress with FERC

abarrelfullabarrelfull wrote on 01 Jul 2015 12:16
Tags: lng n-america nextdecade usa

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NextDecade, LLC (NextDecade) announced that Valinor Management, L.P. (Valinor) and Halcyon Energy Investors, L.P. (Halcyon) have joined certain funds managed by York Capital Management Global Advisors, LLC and its affiliates (York) in providing NextDecade with an additional US$85 million in order to take the Rio Grande LNG (RGLNG) and Rio Bravo Pipeline project to Final Investment Decision (FID) as well as to fund the continued development of Pelican Island LNG (PILNG) in Galveston, Texas. The terms of the transaction include options for NextDecade’s three strategic investors to invest the requisite FID equity sufficient to commence construction of the RGLNG project. Together, York, Valinor and Halcyon manage assets in excess of US$40 billion. Jefferies LLC served as sole placement agent for NextDecade.

Kathleen Eisbrenner, Founder and CEO of NextDecade said, “The financial and strategic support of our new partners, in combination with York’s continued commitment, is validation of NextDecade’s robust project portfolio, world class team and strong collaboration with industry leading partners. This additional capital positions NextDecade to become a leader in the second wave of LNG exports from the United States and allows us to continue the process of de-risking our project portfolio.”

Since entering the U.S. Federal Energy Regulatory Commission (FERC) Pre-Filing Process in March of this year, RGLNG has made significant strides in engineering and design, regulatory commitments, LNG marketing, and local community outreach. As previously announced, NextDecade executed a Front-End Engineering and Design (FEED) agreement with Chicago Bridge & Iron Company (CB&I), as well as the terms under which CB&I could assume the role as the EPC contractor on the RGLNG project. Further, NextDecade submitted Draft Resource Reports 1 & 10 to the FERC during May of 2015, and successfully engaged the local communities through Open Houses in Kingsville, Raymondville and Brownsville regarding plans for the RGLNG and Rio Bravo Pipeline projects.

NextDecade plans to complete FEED by the end of the year and enter the full NEPA filing process with the FERC in Q1 2016. NextDecade expects RGLNG to achieve first LNG by Q3 2020.

NextDecade is currently in active negotiations with major international buyers for long-term contractual LNG off take agreements. Ms. Eisbrenner added, “NextDecade’s business and marketing models are attracting interest in our projects. Our Company is built on projects that are grounded in safe and reliable technology and design with low-risk construction and proven performance that is appealing to our stakeholders.”

Additionally, NextDecade continues the development of its other projects, including Pelican Island LNG in Galveston, Texas. PILNG is continuing basis-of-design work and preliminary engineering while it prepares for future FERC Pre-Filing.

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