NextDecade Corporation (NextDecade) recently announced a status update regarding engineering, procurement, and construction services for its Rio Grande LNG project (RGLNG) in South Texas.
NextDecade and McDermott International, Inc. (McDermott) planned to sign a lump-sum turnkey (LSTK) EPC contract for the construction of RGLNG by the end of 2Q 2018. NextDecade and McDermott have agreed not to execute an EPC contract for the construction of RGLNG. NextDecade and McDermott believe McDermott will have to secure a joint venture partner in order to successfully execute and financially guarantee an LNG project of RGLNG’s size and scope.
To maintain RGLNG’s projected commercial operations date, as early as 2023, NextDecade has launched a competitive EPC bid process. This process will provide NextDecade with front-end engineering and design (FEED) verification and a final LSTK EPC contract based on the existing RGLNG FEED, which was completed in late 2017 by McDermott.
NextDecade received expressions of interest (EOI) from multiple EPC contractors to participate in the competitive EPC process. NextDecade reviewed the EOIs against a series of selection criteria to ensure a rigorous competitive EPC bid process. At the conclusion of this review, NextDecade issued formal invitations to bid to Bechtel Corporation, Fluor Corporation, and McDermott. The McDermott invitation stipulates it shall secure a joint venture partner.
NextDecade anticipates executing a final LSTK EPC contract in the 3Q 2019, prior to a final investment decision on the Rio Grande LNG project.
