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NextDecade advances by raising US$85 million

LNG Industry,

NextDecade LLC (NextDecade) announced that Valinor Management L.P. (Valinor) and Halcyon Energy Investors L.P. (Halcyon) have joined certain funds, managed by York Capital Management Global Advisors LLC and its affiliates (York), in providing NextDecade with an additional US$85 million. This will take the Rio Grande LNG (RGLNG) and Rio Bravo Pipeline project to Final Investment Decision (FID), as well as to fund the continued development of Pelican Island LNG (PILNG) in Galveston, Texas.

The terms of the transaction include options for NextDecade’s three strategic investors to invest the requisite FID equity sufficient to commence construction of the RGLNG project. Together, York, Valinor and Halcyon manage assets in excess of US$40 billion whilst Jefferies LLC served as sole placement agent for NextDecade.

Founder and CEO of NextDecade, Kathleen Eisbrenner, commented: “The financial and strategic support of our new partners, in combination with York’s continued commitment, is validation of NextDecade’s robust project portfolio, world class team and strong collaboration with industry leading partners. This additional capital positions NextDecade to become a leader in the second wave of LNG exports from the United States and allows us to continue the process of de-risking our project portfolio.”

Making progress

Since entering the US Federal Energy Regulatory Commission (FERC) Pre-Filing Process in March 2015, RGLNG has made significant strides in engineering and design, regulatory commitments, LNG marketing, and local community outreach. As previously announced, NextDecade executed a Front-End Engineering and Design (FEED) agreement with Chicago Bridge & Iron Company (CB&I), as well as the terms under which CB&I could assume the role as the EPC contractor on the RGLNG project. Furthermore, NextDecade submitted Draft Resource Reports 1 and 10 to the FERC during May 2015 and successfully engaged the local communities through Open Houses in Kingsville, Raymondville and Brownsville regarding plans for the RGLNG and Rio Bravo Pipeline projects.

NextDecade is currently in active negotiations with major international buyers for long-term contractual LNG off take agreements. Ms. Eisbrenner added: “NextDecade’s business and marketing models are attracting interest in our projects. Our Company is built on projects that are grounded in safe and reliable technology and design with low-risk construction and proven performance that is appealing to our stakeholders.”

NextDecade plans to complete FEED by the end of this year and enter the full NEPA filing process with the FERC in 1Q16 and expects RGLNG to achieve first LNG by 3Q20. Moreover, NextDecade continues development of its other projects, including Pelican Island LNG in Galveston, Texas and PILNG continues basis-of-design work and preliminary engineering whilst it prepares for future FERC Pre-Filing.

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