The US Department of Energy (DOE) has authorised the export of liquefied natural gas (LNG) from NextDecade’s proposed Rio Grande LNG facility to free trade agreement (FTA) countries.
The DOE responded to the application filed by the company in December last year and authorised the export of up to 27 million tonnes per annum (mtpa) of LNG for 30 years.
NextDecade chief commercial officer Alfonso Puga said: “NextDecade is well-positioned to meet international demand, and FTA export authorisation is an important milestone towards making a final investment decision in 2017.
“The US has an abundant supply of natural gas and we have found a robust appetite for LNG.”
The company announced in November last year that agreements have been signed for 14mtpa of LNG with customers across Asia and Europe.
Federal energy regulatory commission (FERC) approval for Rio Grande LNG is expected to be in place next year and initial LNG exports are set to take place by the end of 2020.
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By GlobalDataRio Grande LNG export project has been proposed for a 1,000 acre industrial site on the Port of Brownsville and includes the Rio Bravo Pipeline.
The dual 42in natural gas pipeline is about 140 miles long and will provide feed gas to the facility and natural gas supply optionality and access to natural gas produced in Texas.
The project is expected to create between 4,000 and 6,000 construction jobs and reflect a potential investment of up to $20bn.
