Young: Why Rio Grande LNG and Rio Bravo Pipeline projects could be goners

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NextDecade, its Rio Grande LNG project, and, thereby, Enbridge's Rio Bravo Pipeline project could all be goners.

Because, on 07-27-2023, the Federal Energy Regulatory Commission (FERC) notified Rio Grande LNG that it hasn't yet met its Emergency Response Plan (ERP) and associated Cost Sharing Plan (CSP) requirements that are required for FERC to issue a notice to proceed with the Rio Grande LNG site preparation activities (https://elibrary.ferc.gov/eLibrary/idmws/file_list.asp?accession_num=20200306-3076).

Later on 07-27-2023, FERC had a conversation with Rio Grande LNG about the requirements it must meet before FERC will issue such a letter. Summarized in a note FERC it published on 07-28-2023 (https://elibrary.ferc.gov/eLibrary/filelist?accession_num=20230728-3003).

All due to NextDecade jumping the gun on its 07-12-2023 Order To Proceed (OTP) with site preparation to its EPC Contractor (Bechtel), and basing its present Rio Grande LNG 07-12-2023 high visibility rollout on the 11-22-2019 version of its FERC Permit.

On 07-12-2023, at 04:49 Eastern Daylight Time, NextDecade announced its Rio Grande LNG Phase 1 FID and issuance of an Order To Proceed (OTP) to its EPC contractor Bechtel (https://www.businesswire.com/news/home/20230712253196/en/). 

After which, NextDecade informed FERC that it had made FID and had issued an OTP (https://elibrary.ferc.gov/eLibrary/filelist?accession_num=20230712-5192). 

Rio Grande LNG proceeded with its project construction rollout without waiting to see FERC's response to its 07-12-2023 FID and OTP before initiating payouts for the planned project development.

And without waiting to see FERC's responses to its: 

07-21-2023  "Variance Request No. 2 re Temporary Driveways for the Rio Grande LNG Project" to FERC that mistakenly said the RGLNG Terminal would be located in Cameron Parish, Louisiana, instead of in Cameron County, Texas (https://elibrary.ferc.gov/eLibrary/filelist?accession_num=20230721-5136).

07-24-2023 "Implementation Plan Volume No. 7 for the Rio Grande LNG Terminal and  authorization for a  Notice to Proceed with construction of the Levee for the Rio Grande LNG Project" to FERC (https://elibrary.ferc.gov/eLibrary/filelist?accession_num=20230724-5154) and 07-25-2023 Rio Grande LNG "Implementation Plan Volume No. 8 re Material Offloading Facility Construction for the Rio Grande LNG Project (https://elibrary.ferc.gov/eLibrary/filelist?accession_num=20230725-5057)

Without first checking to see how FERC's 04-21-2023 modification to Rio Grande LNG's original 11-22-2019 FERC Permit might derail its plans -- perhaps fatally.

As of July 31, I've seen nothing about this in any news media reports on the Internet, or on NextDecade's corporate website (https://www.next-decade.com/).


Editor's Note: The above guest commentary was penned by Rio Grande Valley environmentalist John Young. The column appears in The Rio Grande Guardian International News Service with the permission of the author. Young can be reached by email via: forjohnandbarbara@gmail.com

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