NextDecade and Enbridge have entered into an agreement where Enbridge will acquire Rio Bravo Pipeline from NextDecade.
The cash purchase price for the deal would not exceed $25 million, with $15 million paid at closing and the balance paid upon NextDecade reaching a positive final investment decision on its Rio Grande LNG export facility in the Port of Brownsville, Texas.
Upon closing, Enbridge will own 100% of RBPL, and assume all responsibility for the development, financing, construction, and operations of the Rio Bravo Pipeline. NextDecade will continue to be responsible for the development, financing, construction, and operations of its Rio Grande LNG export facility.
Matt Schatzman, NextDecade's chairman and CEO, says: 'This agreement with Enbridge further enhances our commitment to our global LNG customers, natural gas suppliers and other stakeholders to deliver our Rio Grande LNG project on time and on budget.
'As one of North America's leading energy infrastructure companies, Enbrdige 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.'
Enbridge's executive vice president and president of gas transmission and midstream, Bill Yardley, adds: '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.'
The pipeline is designed to transport up to 4.5 billion cubic feet per day of natural gas from the Agua Dulce supply area to NextDecade's Rio Grande LNG project in Brownsville, Texas.
The transaction is expected to close in the first quarter of 2020.