NextDecade challenges setback as US court revokes license for Rio Grande LNG project
(MENAFN) NextDecade has encountered a significant setback as a U.S. court has annulled the Federal energy Regulatory Commission’s (FERC) license for the company's Rio Grande LNG project. The court's decision was based on the commission’s failure to issue a required supplemental environmental impact statement. This development is a major blow to the facility, which has been under development for several years and has experienced multiple delays. The first phase of the project, initially anticipated to be completed by early 2029, is projected to cost around USD18 billion.
NextDecade expressed its disappointment with the court's ruling, asserting that it disagrees with the conclusions reached. Despite the legal setback, construction on the initial three liquefaction facilities and related infrastructure for Phase 1 continues. The company is currently evaluating how the court’s decision will affect the timeline for a positive final investment decision on Facility 4. Earlier this year, the Abu Dhabi National Oil Company (ADNOC) acquired an 11.7 percent stake in the project's first phase, and NextDecade secured a non-binding agreement with Saudi Aramco for the supply of 1.2 million tons of LNG annually over 20 years. The company still plans to commence construction of the fourth liquefaction facility in the latter half of 2024, contingent upon the final investment decision.
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