NextDecade and Enbridge to co-develop natural gas pipeline in Texas

US-based liquefied natural gas (LNG) development company NextDecade and energy transportation firm Enbridge have signed an agreement to jointly develop the Rio Bravo Pipeline in Texas, US.

The $25m deal will see Enbridge acquire 100% of RBPL and assume responsibility for development, financing, construction, and operations of the natural gas pipeline, along with NextDecade.

Enbridge will initially pay $15m at the closure of the deal. NextDecade will receive the remaining balance upon reaching a positive final investment decision (FID) on its Rio Grande LNG project.

NextDecade chairman and CEO Matt Schatzman said: “As one of North America’s leading energy infrastructure companies, Enbridge brings extensive natural gas pipeline experience to execute the Rio Bravo Pipeline, and we are delighted to have them involved in supporting the delivery of our Rio Grande LNG project.”

The Rio Bravo Pipeline will include two 42in-diameter pipelines, which would support three 180,000hp compressor trains at Rio Grande LNG. This pipeline will have the capacity to deliver up to 4.5 billion cubic feet per day (bcf/d).

In November last year, the US Federal Energy Regulatory Commission (FERC) issued an order authorising the construction and operation of NextDecade’s Rio Grande and Rio Bravo projects.

Enbridge executive vice-president Bill Yardley said: “Enbridge’s commitment to the development of the Rio Bravo Pipeline in support of NextDecade’s Rio Grande LNG project further strengthens our ability to serve the expanding LNG export market and fits squarely within our low-risk business model.”

Expected to be closed in the first quarter of this year, the transaction is subject to the satisfaction of specific conditions.