Rio Grande LNG Project Pre-Files for Train 6

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)

Summary

Still in the construction phase, the developers of the Rio Grande LNG export facility filed an early application for an expansion. Developer NextDecade thinks Rio Grande will someday account for 5% of global LNG deliveries.

Pre-Filing for Train 6

The developers of the as-yet-operational Rio Grande liquefied natural gas (LNG) export facility in Brownsville, Texas said Monday they have started a pre-filing process for additional liquefaction capacity.

NextDecade Corporation (Houston, Texas) began the pre-filing process with the Federal Energy Regulatory Commission (FERC) for a sixth liquefaction train and an additional marine berth for the facility.

"With five trains now under construction at Rio Grande LNG and space at the site to potentially double capacity, we are intently focused on the next phase of growth for NextDecade, and today we have advanced the permitting process for our expansion capacity by initiating a pre-filing with FERC for Train 6," Matt Schatzman, NextDecade's chairman and chief executive officer, said in a press release.

NextDecade made its final investment decision (FID) on Train 5 at its Rio Grande LNG facility last month. The total expected LNG production capacity currently under construction at Rio Grande LNG could be about 30 million metric tons per annum (MTPA).

Schatzman said those volumes should account for about 5% of global supplies by the early 2030s. The company believes there is enough room on the 1,000-acre campus in Brownsville for up to 10 liquefaction trains.

Rio Grande is supported already by offtake agreements with Abu Dhabi National Oil Company (United Arab Emirates), TotalEnergies (Courbevoie, France) and Saudi Arabian Oil Company (Dhahran, Saudi Arabia). Domestic companies making offtake agreements include EQT Corporation (Pittsburgh, Pennsylvania) and ConocoPhillips (Houston).

The company made no reference to the volumes expected from Train 6, nor did it specify details on the marine berth. The formal filing process for Train 6 is expected to begin in 2026.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can view a list of detailed project reports on the Rio Grande LNG facility and the plant profile.

Total Feed Gas Sets a Record

On Tuesday, IIR Energy filed a Breaking Energy News alert to clients stating that U.S. feed gas to the eight operational terminals set a record at 18.9 billion cubic feet (Bcf), and could soon pass the 19-Bcf threshold. That would be some 4 Bcf above what the U.S. Department of Energy expects for average exports of gas in the liquid form this year.

According to IIR's NATGAS TODAY, volumes were supported by higher feed gas receipts at Calcasieu Pass in Louisiana, Corpus Christi and Freeport (both in Texas). The Freeport LNG facility is recovering from a recent hiccup and was operating at only 82% of its design capacity of 2.37 billion cubic feet per day (Bcf/d). Feed gas to Freeport was as low as 1.8 Bcf recently.

The report added that U.S. supplies are down as a result of lower cross-border flows from Canada. Canadian gas deliveries slipped from 6 Bcf/d to 5.82 Bcf/d on Tuesday due largely to cross-border issues on a pipeline. Domestic natural gas production was also down, led largely by output from Gulf Coast states and the Gulf of Mexico.

The U.S. emerged as the world leader in LNG exports during the early stages of the war in Ukraine, helping to offset the loss of Russian deliveries due to sanctions. Since his return to office in January, President Donald Trump has pressed hard for more LNG options, dusting off projects in Alaska and along the Gulf Coast.

Key Takeaways

• Expansion plans detailed for an LNG terminal not yet in service.
• NextDecade said it will submit a formal application by next year.
• Total feed gas for LNG set a record on Tuesday.

By the Numbers

• 18.9 billion: Cubic feet of feed gas on Tuesday
• 10: Possible trains for Rio Grande
• 5: The percentage of global supplies of LNG expected from Rio Grande

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).