Rio Grande LNG go ahead brings GLDD its biggest project yet

Four tugs will serve Rio Grande LNG export facility. [image: NextDecade]

Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) has received a notice to proceed with what president and CEO Lasse Petterson says is an “exciting milestone project” that will “the largest undertaken by Great Lakes in its 133-year history.” The project involves the performance of essential improvements to the Brownsville Ship Channel for the NextDecade Corporation (NASDAQ: NEXT) Rio Grande LNG project.

GLDD’s announcement comes after NextDecade announced last month that it had taken the final investment decision to go ahead with construction of the first three liquefaction trains at the Rio Grande LNG terminal. To be built at the Port of Brownsville, Texas, it is the largest proposed liquefied natural gas (LNG) export facility in the United States.

Once fully operational, the Rio Grande LNG terminal will consist of five trains with the capacity to export 27 million tonnes of LNG per annum (MTPA) Phase 1, with nameplate liquefaction capacity of 17.6 MTPA, is backed by 16.2 MTPA of long-term binding LNG sale and purchase agreements with TotalEnergies, Shell NA LNG LLC, ENN LNG Pte Ltd, Engie S.A., ExxonMobil LNG Asia Pacific, Guangdong Energy Group, China Gas Hongda Energy Trading Co., Galp Trading S.A. and Itochu Corporation.

The project’s financing for Phase 1 is $18.4 billion. GLDD’s announcement today did not disclose the value of the work awarded it, which includes deepening the entrance channel to the western end of the Rio Grande LNG property also known as Phase 1 of the Brazos Island Harbor Channel Improvements. This also includes the development of two ship berths and turning basin for the Rio Grande LNG facility. This project will enhance commercial navigation into and out of the Port of Brownsville and ensure the safe and reliable access of LNG carriers to the facility.

Great Lakes is expected to start the project later this year.

“We look forward to working with NextDecade and other stakeholders, including the U.S. Army Corps of Engineers and the Port of Brownsville, on this important improvement project that will benefit the navigation interests and allows for future development of the Port of Brownsville,” said Lasse Petterson. “Our proven performance and safety culture allows us to support the growth of LNG export in the U.S., which is a necessity in balancing affordability for energy and overall sustainability.”