Texas LNG Developer Selects Channel Dredging Specialist
NextDecade Corp. (NASDAQ: NEXT), which is developing the Rio Grande LNG export terminal in the Port of Brownsville, Texas, reported Wednesday that it has selected Great Lakes Dredge & Dock Corp. (NASDAQ: GLDD) to complete improvements to the Brownsville Ship Channel.
Noting the selection follows a competitive bid and contracting process, NextDecade stated the improvements will include deepening the channel to enhance commercial navigation into and out of the port. The company added that LNG carriers will enjoy safe and reliable access to the Rio Grande terminal and shallower-draft traffic will be able to pass the carriers in either direction, meeting U.S. Coast Guard guidelines.
“We have finalized our contract for channel improvements with Great Lakes Dredge & Dock, the nation’s largest provider of marine dredging services,” remarked NextDecade Chairman and CEO Matt Schatzman. “These improvements, to be completed without the use of public funds, will benefit existing port tenants and pave the way for future development of the Port of Brownsville. As we continue to advance our development activities, we are pleased to demonstrate our continued commitment to the port, to Cameron County and to the entire Rio Grande Valley.”
NextDecade pointed out that it has completed – with the Port of Brownsville – the permitting process for project activities within this scope of a dredge and disposal construction agreement (DDCA). It explained the DDCA aligns with the company’s overall Rio Grande LNG construction budget and timeline, featuring provisions that allow efficient sequencing and coordination with project development activities tied to engineering, procurement and construction (EPC) contracts.
As Rigzone has reported, NextDecade revealed in May 2019 that it had awarded two EPC contracts for Rio Grande LNG to Bechtel Oil, Gas & Chemicals.
“Great Lakes looks forward to partnering with NextDecade on this important project,” commented Lasse Petterson, president and CEO of Great Lakes. “Great Lakes’ extensive dredging experience, proven track record for successful completion of similar projects and emphasis on safe work performance uniquely qualifies Great Lakes for this work. We are encouraged by the project’s commitment to the Port of Brownsville and we look forward to supporting this effort during our dredging program.”
Petterson added the Brownsville Ship Channel projects represents a milestone for his company.
“This will be the largest project ever undertaken by Great Lakes and we anticipate adding this project to backlog once a notice to proceed is received,” he said.
NextDecade’s website states the company anticipates making a final investment decision on Rio Grande LNG in 2021.
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