US based LNG project developer NextDecade has raised $85m in funding for its Rio Grande LNG (RGLNG) export project in Brownsville, Texas, which is expected to involve around $8bn investment.
Valinor Management and Halcyon Energy Investors have joined certain funds managed by York Capital Management Global Advisors to support the project with the additional capital.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The funding will be used by NextDecade to take the Rio Grande LNG (RGLNG) and Rio Bravo Pipeline project to Final Investment Decision (FID) and continue with the development of Pelican Island LNG (PILNG) project in Galveston, Texas.
Under the terms of the transaction, the three strategic investors will be allowed options to invest the required FID equity sufficient to start construction of the RGLNG project.
NextDecade founder and CEO Kathleen Eisbrenner 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."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe project has entered into the US Federal Energy Regulatory Commission (FERC) Pre-Filing Process in March.
Next Decade has signed an agreement with CB&I for the Front End Engineering Design (FEED) and engineering, procurement and construction (EPC) terms related to the LNG project.
The firm intends to complete the FEED process within this year.
The land-based RGLNG export project has been planned to be developed for the Brownsville Ship Channel, located on the Texas Gulf Coast near Brownsville.
RGLNG project is planned to feature up to six liquefaction trains, each having a nominal output capacity of 4.5 million tons of LNG per year.
Proposed pipeline for RGLNG, which will extend for around 140 miles, will supply the facility with feed gas.
Image: Proposed Rio Grande LNG Facility looking west along the Brownsville Ship Channel. Photo: courtesy of Rio Grande LNG.
