Rio Grande seeks three-year US extension to build LNG facilities in Texas

By Pranav Mathur and Curtis Williams

April 27 (Reuters) - NextDecade-owned NEXT.O Rio Grande LNG wants a new, three-year extension from the U.S. Federal Energy Regulatory Commission to construct an export facility in Texas, according to a regulatory filing.

If granted, the extension would be the second from FERC for Rio Grande to finish construction and begin commercial operations at the 30 million metric tons per annum liquefied natural gas export facility with five planned production units, known as trains. The facility could eventually be expanded to process 48 mtpa.

Rio Grande has blamed court battles with environmental groups for the construction delays. FERC initially granted an extension to November 22, 2028, to complete construction and begin commercial operations at the facility.

"Given intervening events, substantial completion of Train 1 is not anticipated until the fourth quarter of 2027, and the four remaining trains will be brought online sequentially thereafter, with Train 5 scheduled to be placed in service in the second quarter of 2031," the company said in the Friday filing.

The facility under development has four full-containment LNG storage tanks, and two LNG carrier loading berths, according to project documents. Two additional trains are currently in the development and permitting process, but have not yet reached positive final investment decisions.

Construction of trains 1-3 is estimated to be completed by the first quarter of 2029, and the rest by the second quarter of 2031, the company said.

Construction of the terminal started in July 2023, nearly four years after its initial authorization.