NextDecade Corp. and Enbridge announced Thursday Enbridge will acquire Rio Bravo Pipeline Company LLC from NextDecade for no more than $25 million, Kallanish Energy reports.
A total of $15 million will be paid at deal closing and the balance paid upon NextDecade reaching a positive final investment decision (FID) on its Rio Grande LNG liquefied natural gas export facility in the Port of Brownsville, Texas.
Upon closing of the transaction, Enbridge will assume all responsibility for the development, financing, construction, and operations of the Rio Bravo line. “As one of North America’s leading energy infrastructure companies, Enbridge brings extensive natural gas pipeline experience to execute the Rio Bravo Pipeline, and we are delighted to have them involved in supporting the delivery of our Rio Grande LNG project,” said Matt Schatzman, NextDecade’s chairman and CEO.
In addition, Enbridge and NextDecade have negotiated an agreement whereby NextDecade will retain its rights to the natural gas firm transportation capacity on the Rio Bravo for at least 20 years to supply NextDecade’s Rio Grande LNG export facility.
The Rio Bravo Pipeline is designed to transport up to 4.5 billion cubic feet per day of natural gas from the Agua Dulce hub near Corpus Christi, Texas, roughly 140 miles south to NextDecade’s Rio Grande LNG project in Brownsville.
In November 2019, the Federal Energy Regulatory Commission issued an order authorizing the siting, construction, and operation of NextDecade’s Rio Grande LNG project and the Rio Bravo line.
Last month, FERC issued a final order on rehearing for the Rio Grande LNG project and the Rio Bravo. And just this week, Rio Grande was approved by the U.S. Department of Energy to ship LNG to non-Free Trade Agreement countries.
Subject to the satisfaction of certain conditions, the transaction is expected to close by April 1.
This post appeared first on Kallanish Energy News.