GE Oil & Gas has secured contract from NextDecade to supply gas turbine and compressor equipment for the liquefied natural gas (LNG) export project and associated pipeline n Texas, US.
Under the deal, GE will exclusively supply gas turbine and compressor equipment for the liquefaction trains of the Rio Grande LNG project and the associated Rio Bravo Pipeline.
The deal also includes long-term services, life-cycle maintenance agreements and GE performance guarantees for the projects.
GE Oil & Gas is offering NextDecade with a common equity investment, in addition to technology and services. It is eligible to invest specific amount in project-level equity and debt financing for Rio Grande LNG at the time of final investment decision (FID).
Rio Grande LNG is a proposed LNG export facility at the Port of Brownsville, which is close to the Permian Basin and Eagle Ford Shale. The 27 million tons LNG export facility is planning at a 984-acre industrial site.
The project, along with the associated Rio Bravo pipeline, is currently under the permitting process of the Federal Energy Regulatory Commission (FERC).
Till now, the firm signed 30 mtpa of non-binding sales agreements for the Rio Grande LNG project, as part of its efforts to offer flexible solutions to both customers and producers.
NextDecade CEO Kathleen Eisbrenner said: “NextDecade is delighted to welcome GE Oil & Gas as both a shareholder and exclusive supplier to its Rio Grande LNG and Rio Bravo Pipeline projects.
“We believe GE will add significant value as we work to make Rio Grande LNG one of the most competitive liquefaction projects in the world. The addition of GE Oil & Gas reaffirms our commitment to use proven technology to provide our customers with low-cost, reliable LNG.”
In April this year, NextDecade had signed a merger deal with Harmony Merger, which is a publicly traded special purpose acquisition company.
The deal is expected to complete in the second quarter of this year.