NextDecade LLC said on Monday the U.S. Federal Energy Regulatory Commission will consider a proposed liquefied natural gas project in Rio Grande Valley in south Texas.
The Woodlands, Texas-based company said it submitted the official request on Friday for its Rio Grande LNG project and the associated Rio Bravo Pipeline.
Rio Grande LNG, a wholly owned subsidiary of NextDecade, is a multi-billion dollar land-based export project located on a 1,000-acre site along the shipping channel in Brownsville, Texas, the company said in a statement.
The first phase of the project would involve a direct investment of about $8 billion.
"The Final Investment Decision will come after the FERC and related permitting agencies have given full authorization to construct, expected in 2017," NextDecade said.
The company said its proposal includes plans for up to six liquefaction trains, with a nominal output capacity of 4.5 million tonnes of LNG per train a year, and the facility will be built in phases depending on market demand.
The company added that, in addition to the LNG project, the proposed 129-mile Rio Bravo Pipeline will supply the facility with feed-gas and also connect it to the Agua Dulce natural gas market in Nueces County, Texas.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 2.3 million barrels to 31.2 million barrels. That’s the lowest level since October 2018, and points to tightness in the market that may take some time to alleviate.
Shipping rates across all routes are up this week and will likely break previous record high levels, a Singapore-based LNG trader said.
For China—which has this year overtaken Japan as the world's top LNG buyer—the deals will be its single largest LNG trade agreement in terms of volumes without an equity stake, a senior Beijing-based gas industry source said.