The proposed $15 billion Rio Grande LNG export terminal and pipeline at the Port of Brownsville, Texas, took a big step forward this week when the Brownsville Navigation District awarded Rio Grande LNG a 30-year lease for 984 acres of land along the Brownsville Ship Channel.
No financial terms were made available. Under the new lease, Rio Grande LNG has two options to renew and extend the lease for periods of 10 years each, Kallanish Energy reports.
“We are pleased to have formally executed our lease agreement with the Brownsville Navigation District, and appreciate the ongoing support of Chairman Reed and the BND Commission,” NextDecade CEO Matt Schatzman said, in a statement.
The LNG project includes the 27 million tonnes per annum (Mtpa) Rio Grande LNG export facility in Brownsville, and the 4.5 billion cubic feet per day (Bcf/d) twin-line Rio Bravo Pipeline. The line would transport natural gas 138 miles from the Agua Dulce area in Jim Wells County, Texas, to the LNG export facility.
As one of three LNG export complexes proposed to be built at the Port of Brownsville, Rio Grande LNG faces both stiff competition and opposition, from a coalition of shrimpers, fishermen, environmentalists, neighbors and communities working under the banner “Save RGV From LNG.”
Rio Grande LNG and the Rio Bravo Pipeline last December were issued state permits by the Texas Commission on Environmental Quality. Final approval from the Federal Energy Regulatory Commission is expected in July.
NextDecade anticipates making a positive final investment decision on its Rio Grande LNG project by Oct. 1.
This post appeared first on Kallanish Energy News.