Award: Phase 1, Rio Grande LNG Plant
Value: $12 billion
Location: Brownsville, Texas
Client: NextDecade Corp.
Reston, Virginia-based contractor Bechtel received a $12 billion green light to proceed on the Rio Grande LNG Plant in Brownsville, Texas, Houston-based owner NextDecade announced on July 12.
Bechtel, one of the largest contractors in the country, received the notice to proceed following a positive final investment decision from the firm.
The contractor will begin construction of Phase 1 under its lump-sum turnkey engineering, procurement, and construction contracts, according to the release. A Bechtel spokesperson confirmed that construction has already begun.
Overall financing came in at $18.4 billion, a sum NextDecade claims is the largest single greenfield energy project funding deal in U.S. history.
During Phase 1, Bechtel will build the first three liquefaction trains at the facility, which has annual nameplate liquefaction capacity of 17.6 million tons. When complete, the total capacity of the plant will be 27 million tons annually, the firm said.
NextDecade’s JV included approximately $5.9 billion of financial commitments from New York-based private equity firm Global Infrastructure Partners; Singapore-based global investment firm GIC; Abu Dhabi, United Arab Emirates-based Mubadala Investment Co.; and Courbevoie, France-based petroleum firm TotalEnergies.
The remaining expected project costs to be covered by the financing that closed on July 12 are: owner’s costs and contingencies of approximately $2.3 billion; dredging for the Brazos Island Harbor Channel Improvement Project; conservation of more than 4,000 acres of wetland and wildlife habitat area and installation of utilities of approximately $600 million; and interest during construction and other financing costs of approximately $3.1 billion, according to the release.
“Today, as we commence engineering, procurement, and construction on the first phase of this project, we reaffirm our commitment to the community through quality jobs, training, and support for the supply chain and small businesses,” said Paul Marsden, president of Bechtel Energy, in the release.
The project represents another win for the company on the LNG front — in March, the company was issued a final notice to proceed on Phase 1 of public utility company Sempra’s $13 billion Port Arthur, Texas LNG plant.