NextDecade, Baker Hughes ink framework deal for Rio Grande LNG expansion

US LNG firm NextDecade and compatriot energy services firm Baker Hughes have entered into a framework agreement related to the expansion of the Rio Grande LNG export plant in Texas.

NextDecade said on Tuesday it plans to utilize Baker Hughes’ gas turbine and refrigerant compressor technology and enter into contractual services agreements to perform maintenance work for these equipment packages for trains 4 through 8 at the Rio Grande LNG facility.

Baker Hughes expects orders, in relation to this agreement, as NextDecade’s project progresses, the statement said.

“Utilizing Baker Hughes’ industry-leading rotating equipment and their maintenance services is critical to ensuring the Rio Grande LNG facility operates efficiently and reliably,” said Matt Schatzman, chairman and CEO of NextDecade.

“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,” he said.

NextDecade is currently building three trains at the site located on the north shore of the Brownsville Ship Channel in south Texas.

In July 2023, NextDecade took the final investment decision on the first three Rio Grande trains and completed a $18.4 billion project financing.

NextDecade awarded the $12 billion EPC contract to Bechtel, and it officially kicked off work on the plant in October 2023.

Making progress on trains 4 and 5

NextDecade said on Tuesday it is making “excellent” progress on commercializing Rio Grande LNG trains 4 and 5.

The company expects to make positive final investment decisions and start 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 contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure.

The company recently also announced plans to build up to five more trains at the Rio Grande LNG facility.

NextDecade said it is developing and beginning the permitting process for trains 6 through 8, which are wholly owned by NextDecade and are cumulatively expected to increase the company’s total liquefaction capacity by approximately 18 million tonnes per annum once constructed and placed into operation.

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