NextDecade and CB&I complete Rio Grande LNG FEED update, reconfirm market-leading cost estimates
Friday, Feb 02, 2018
NextDecade Corporation (NextDecade) (NASDAQ: NEXT) announced today that it has completed the Front-End Engineering & Design (FEED) update package with CB&I (NYSE: CBI) for the proposed Rio Grande LNG project in South Texas. The update incorporates identified cost reduction and value improvement initiatives and reconfirms market-leading EPC cost estimates for three trains of $490 per ton with a target of $450 per ton. For two trains the EPC cost estimate improves to $535 per ton with a target of $500 per ton.

Utilizing Air Products’ AP-C3MR™ liquefaction technology and GE rotating equipment to achieve optimal configuration and economies of scale, “Rio Grande LNG stands out thanks to its proven project design allowing for low risk, highly competitive economics across multiple build scenarios,” said NextDecade CEO Matt Schatzman. The scalable development affords NextDecade flexibility to reach Final Investment Decision (FID) with as few as two trains, without sacrificing economics. “We intend to develop our full 6-train project at Rio Grande, and by incorporating a competitive, scalable design, we are able to offer a lower risk profile to both investors and customers beginning with our first two trains,” added Schatzman.

As previously disclosed, NextDecade and CB&I are finalizing an Open Book Estimate to incorporate the FEED update improvements and currently plan to execute a binding Lump-Sum Turnkey (LSTK) EPC agreement in 2Q 2018.

Located at the Port of Brownsville in South Texas, the Rio Grande LNG project is expected to be a leader among second wave U.S. LNG projects. NextDecade’s customers and shareholders will benefit from the project’s low cost, lower risk, and optimal location. The use of proven technology and recent execution experience from CB&I will foster operational reliability and afford NextDecade’s customers access to reliable, low-cost, abundant natural gas from the Permian Basin, Eagle Ford Shale, and other basins.

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