Bechtel, Worley Gain Big Awards on Texas, Alaska LNG Projects
Rio Grande LNG export terminal complex site in Brownsville, Texas, seen in early 2024, has add to EPC contractor Bechtel's construction mission two new trains, for total of five now being built or planned. Developer Next Decade said in May that it seeks federal permission for three more trains.
Photo courtesy of Next Decade
U.S. liquefied natural gas producer NextDecade has announced final engineer, procure and construct contracts awarded to Bechtel Energy, totaling about $9 billion, for Trains 4 and 5 at its Rio Grande LNG export facility in Brownsville, Texas.
The fixed-price contracts remain valid through Sept. 15, said NextDecade, which also said it expects up to $2 billion in added expenses per train during construction.
Bechtel now is EPC contractor for the LNG facility's first three trains, which are under construction and set to start operation in 2027.
When all five trains complete construction, the export terminal would have a capacity of 27 million metric tons per year, said NextDecade, which also said in May that it now seeks to build three more trains.
"We expect to pre-file with the Federal Energy Regulatory Commission for Train 6 this year and will provide a permitting timeline for Trains 7 and 8 later this year.” said Matt Schatzman, developer chairman and CEO. “We continue to see excellent demand for U.S. LNG, which will help us commercialize Train 5 and advance both Trains 4 and 5 toward positive final investment decisions.”
According to NextDecade, the added trains, if completed, would expand plant capacity to 48 million metric tons per year.
Australia-based Worley also confirms a key contract award from Alaska LNG developer Glenfarne for engineering services on a $10.8-billion pipeline to carry North Slope gas about 807 miles south to an LNG liquefaction plant to be built on the Kenai Peninsula.
The work also will enable a final cost estimate for the pipeline, which is part of the estimated $44-billion Alaska LNG project. The line will be constructed in two phases, Glenfarne said.
The project has long faced barriers, but proponents now are revving up efforts to point to environmental impacts, with Friends of the Earth releasing a new report. But the group also claims the project may be eligible for $35 billion in subsidies from the Trump administration, which has been a key booster to assist it to gain needed overseas offtake buyers and investors.
With the lack of any yet committed buyers, Glenfarne CEO Justin Duval acknowledged at an Anchorage energy conference in early June that "there's no doubt this is going to be really, really hard and a lot of angst,” according to a local report. But he still described Alaskan LNG as a "tremendous opportunity."
