Energy infrastructure giants partner on South TX LNG pipeline

By Luke Geiver | September 24, 2019

Enbridge Inc. is looking to expand into the South Texas liquified natural gas sector. The North American energy infrastructure company has signed a Memorandum of Understanding with NextDecade Corp. to develop a system of natural gas pipelines that would move natural gas through portions of Texas before eventually reaching Brownsville, Texas. In Brownsville, NextDecade is building out and expanding the Rio Grande LNG project.

Through the MOU, the two entities plan to build the Rio Bravo pipeline to transport roughly 4.5 billion cubic feet per day of natural gas.

Matt Schatzman, NextDecade's CEO said, "Enbridge is one of North America's leading energy infrastructure companies and we look forward to exploring a strong partnership in South Texas. With its Texas Eastern Pipeline and recently completed Valley Crossing Pipeline, Enbridge has extensive permitting, construction, and operating experience in the State of Texas, especially in South Texas."

Bill Yardley, Enbridge's President of Gas Transmission and Midstream said, "We are excited to be working with NextDecade for pipeline solutions to the Rio Grande LNG facility. Our existing infrastructure fits very well with the Brownsville location. This is a continuation of our strategy to bring our major projects execution and permitting capability to the expanding LNG export efforts in North America."

The companies anticipate finalizing definitive documentation reflecting the terms of the MOU in the fourth quarter of 2019.