US LNG developer NextDecade has decided to delay the final investment decision (FID) on its proposed Rio Grande LNG export project in Brownsville, Texas. The developer on Monday said it postponed the FID until 2021 amid harsh market environments. In its regulatory filing, NextDecade said it had cut workforce by 18% since the start of 2020 and furloughed another 14% of workers in May to preserve liquidity.
NextDecade did not provide details on its targeted start of commercial exports from the facility by 2023. However, given the new FID timing, the start-up of the terminal will likely be delayed. NextDecade became the last US LNG developer which announces deferral on its FID. Sempra and Cheniere previously delayed its decision on LNG export projects until next year.
NextDecade has awarded engineering firm Bechtel a contract to build up to three liquefaction trains for its Rio Grande LNG export facility, with each capacity of 5.87 million tons/year. It also secured a 20-year deal with a unit of Royal Dutch Shell Plc for an annual supply of 2 million tons of LNG from the facility.
NextDecade’s shares were up 16.7% to $1.40 on Monday driven by expectations that its cash would be sufficient to continue project development.
