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July 12, 2023

King & Spalding advises NextDecade on its $11.7 billion EPC Agreement with Bechtel, LNG marketing, and all real estate matters (including a 984 acre lease) for the $18 billion Rio Grande Natural Gas Liquefaction Facility Project

King & Spalding advised Rio Grande LNG, LLC, a subsidiary of NextDecade Corporation (“NextDecade”) (NASDAQ: NEXT), for the first phase of NextDecade’s Rio Grande LNG project, located in Brownsville, Texas (“Rio Grande Project”).  The Rio Grande Project is the largest privately funded infrastructure project in the State of Texas.  On July 12, 2023, NextDecade achieved financial close of approximately $18.4 billion in project financing for the Rio Grande Project.  Contemporaneously, NextDecade issued a Final Investment Decision and full notice to proceed.  King & Spalding advised NextDecade on the EPC agreement, natural gas transportation arrangements, LNG marketing, all real estate matters, and as opinion counsel.  

First, K&S advised NextDecade on an approximately $12 billion contract with Bechtel Energy Inc. for the engineering, procurement, and construction (EPC) of the project, including the construction of three liquefaction units, for an aggregate nominal LNG production capacity of approximately 17.6 million metric tonnes per annum. 

In addition to this EPC work, King & Spalding also advised on natural gas transportation arrangements with Enbridge subsidiary Rio Bravo Pipeline, LLC, and supported NextDecade’s LNG marketing, including providing advice in respect of each of the LNG sale and purchase agreements underpinning the project financing of the Rio Grande Project.

Finally, King & Spalding advised NextDecade in all real estate matters, including the negotiation of the approximately 984 acre lease with the Brownsville Navigation District of Cameron County, Texas underlying the Rio Grande Project, as well as numerous related real estate agreements. In addition to advising on the initial site control documents, King & Spalding served as real estate counsel in the project financing of the project, handling all aspects of real estate for the transaction. King & Spalding further supported the project financing as opinion counsel, providing Texas, New York, and English law opinions in respect of the Rio Grande Project’s real estate and commercial agreements.

NextDecade is a liquified natural gas (LNG) development company focused on LNG export projects and associated pipelines in Texas. NextDecade intends to develop the largest LNG export solution linking Permian Basin associated gas to the global LNG market, creating value for producers, customers, and stockholders. NextDecade is headquartered in Houston, Texas.

The King & Spalding team advising NextDecade consisted of Scott Greer (HOU), Rob Garner (HOU), David Lang (HOU), David Runnels (HOU), Chris McCoy (CHA), Kristyn Dunn (CHI), Nina Howell (LON), Martin Hunt (LON), Kim Cagle (HOU), Brandt Leibe (HOU), Brandon Dalling (NY), Zoe Bromage (SIN), Daniele Pressler (DC), Jill McWhirter (HOU), Pete Hays (HOU), Gregg Jacobson (ATL), Silvia Martin (HOU), Fernando Langa (HOU), Khalid Kullab (HOU), Kaleb Walker (HOU), Amanda Garza (HOU), Hannah Rudder (CHA), Sean Sheehy (HOU), Andrew Ketner (HOU), and Katy Clements (ATL).