Canadian pipeline operator Enbridge has announced plans to purchase Rio Bravo Pipeline Company from NextDecade, for a maximum price of $25 million (€23 million).
Under a definitive agreement signed by the two companies, $15 million (€13.8 million) will be paid at closing, with the final balance to be paid after NextDecade reaches a positive final investment decision on its Rio Grande LNG export facility, located in the Port of Brownsville, Texas, US.
Enbridge will take full ownership of Rio Bravo and assume all responsibility for the development, financing, construction and operations of the Rio Bravo pipeline. NextDecade will remain responsible for the development, financing, construction and operations of the Rio Grande LNG export facility.
“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,” said Matt Schatzman, chairman and CEO of NextDecade. “As one of North America’s leading energy infrastructure companies, Enbridge 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.”
“We are excited to move forward with this transaction,” added Bill Yardley, Enbridge’s executive vice-president and president of gas transmission and midstream. “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 Rio Bravo pipeline is able to transport up to 4.5 billion cubic feet of natural gas per day, from the Agua Dulce supply area to NextDecade’s Rio Grande LNG project in Texas.
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