RIO GRANDE LNG. Project Overview

Transcription

1 RIO GRANDE LNG Project Overview

2 NextDecade s Established Partnerships with LNG Industry Leaders EPC Contractor CB&I is the most complete energy infrastructure- focused company in the world and a major provider of government services with 125 years of experience, approximately 55,000 employees and a current market capitaliza4on of nearly $6.0 B Owners Engineer for FERC Technical Work Providing LNG engineering and consul4ng services encompassing the en4re LNG value chain since 1991 Has worked on the majority of U.S. sanc4oned LNG projects in recent years Marine Services Environmental Services E&E provides LNG clients with smart, innova4ve solu4ons to a full range of environmental problems Since 1970, E&E has completed over 50,000 projects in 122 different countries, in nearly every ecosystem on the planet Financial Partner Designed, built, commissioned and operated Peru LNG project Providing lump- sum turnkey EPC package with performance and comple4on guarantees necessary to ensure the financeability of its project design on a cost compe44ve basis With a porrolio of more than 7,000 projects, the firm provides clients worldwide with customized service and a level of excellence that have become an industry hallmark in six key prac4ce areas: Ports and harbors; coastal, environmental and water resources; urban waterfronts and marinas; transporta4on, bridge & rail; inspec4on and rehabilita4on; energy Regulatory Counsel and FERC Interface More than 3,800 lawyers in over 50 ci4es around the world, with significant energy, regulatory and LNG experience Experienced in LNG project development, including permi^ng, project financing and construc4on phases, and LNG marke4ng, advising on long- term LNG SPA contracts, sale and purchase of spot cargoes, and tolling agreements Global private investment firm with over $25 B under management, and substan4al experience in providing companies with both preferred and equity capital and working with management teams to achieve superior risk adjusted returns for their investors Initial investment in NextDecade made October 3,

3 Rio Grande LNG Located Near Major Gas Supply with Access to ExisEng Infrastructure Key Points Texas Gulf Coast sites located near major gas supply and existing infrastructure with close proximity to two natural gas hubs: Katy Hub and Agua Dulce are both highly liquid hubs Both have a pipeline capacity interconnect opportunity of Bcf/d More than 30% of 2015E lower-48 U.S. natural gas production is located near the Texas Gulf Coast (1) Eagle Ford Shale Katy Gas Hub 2015E Lower-48 U.S. Natural Gas Production (Bcf/d) (1) 0.9 2% 2.2 3% 3.8 6% % 5.4 8% % % 5.1 8% 4.6 7% 4.2 7% Agua Dulce Gas Hub Gulf of Mexico Eagle Ford Haynesville Barnett Permian Marcellus Oklahoma Niobrara Fayetteville Bakken Other 2

4 Proof of Concept: Peru LNG Key Points NextDecade is partnering with CB&I, and their Peru LNG team to create a unique FEED package for its U.S. land- based projects This FEED package will be based on the land- based liquefac4on plant technology employed at the Peru LNG project and will include lump- sum turnkey, performance and compleeon guarantees from CB&I CB&I s experience at Peru LNG will allow NextDecade to rapidly develop projects with the comfort of a strong implementa4on and opera4onal track record 2 x 130,000 m 3 LNG storage tanks 1 x 4.4 Mtpa train Peru LNG Project Overview EPC contractor: CB&I O&M contractor: CB&I Construc4on start: 2007 First LNG: x 4.4 Mtpa train 2 x 130,000 m 3 LNG storage tanks CB&I has ongoing opera4ons and maintenance contracts 3

5 Rio Grande LNG Overview Key Points 16 Mtpa (2 + 2 x 4 Mtpa) and 3 x 180,000 m3 full containment LNG tanks First Site: 500-acre site owned by Port for Industrial Development ( Rio Grande LNG 1 ) Deepwater port access with supporting marine infrastructure and services Planned Facility Second Site: Option agreement under negotiation for 500-acre tract adjacent to Rio Grande LNG 1 ( Rio Grande LNG 2 ) Ship channel controlling depth 42 feet K ey L ocation South Padre Island Port Isabel Poten4al of Mtpa as a combined project Status: Project under development Brownsville Historical acceptance and support of energy projects 4

6 Rio Grande LNG Plot Plan 5

7 Rio Grande LNG Expansion Opportunity Major pipeline trading hub at Agua Dulce with interstate & intrastate natural gas pipelines approximately 125 miles Rio Grande LNG 2 (500 Acres): Site under nego4a4on with Port Discussion centered on opportunity to combine parcels under one development strategy Op4mize acreage with marine infrastructure and turning basin in RG2 crea4ng more upland in RG1 for larger liquefac4on poten4al Development: 16 to 24 Mtpa poten4al as combined project NextDecade is currently nego4a4ng an op4on agreement to develop an adjacent 500- acre tract This development could expand combined capacity from 16 Mtpa to 24 Mtpa Under Development: Rio Grande LNG I (500 Acres) Site under Op4on for 3 years with milestones Plan to pre- file new land based development project at FERC by Q With land- based development: 12 to 16 Mtpa poten4al 6

8 THANK YOU!