Woodlands, Texas-based NextDecade LLC has signed an agreement with the Port of Cork Co. in Ireland for a joint project to develop natural gas storage and import facilities.
The companies announced July 19 the signing of a Memorandum of Understanding (MOU) to advance a joint business development opportunity for a new floating storage and regasification unit (FSRU) and associated liquefied natural gas (LNG) import terminal infrastructure.
NextDecade is an LNG development company focused on LNG export projects in the state of Texas. The company and the Port of Cork are planning a joint public event at the Port of Cork on Aug. 2 to highlight the agreement and its potential benefits for Ireland and its regional partners. NextDecade CEO Kathleen Eisbrenner and Flex LNG CEO Jonathan Cook will meet with port officials and discuss the opportunity with local industry and political leaders.
Under the terms of the MOU, the potential development at the Port of Cork would receive LNG from NextDecade’s planned Rio Grande LNG (RGLNG) project in South Texas. The development would provide competitively priced energy solutions to Ireland and its regional partners under long-term contracts. If constructed, the project would substantially increase and diversify Ireland’s supply of natural gas.
The MOU commits the parties to undertake exclusive negotiations to develop the LNG import project. A key seaport in the south of Ireland, the Port of Cork is a sheltered, natural deepwater harbor capable of handling large liquids and cargo ships of all sizes.
NextDecade’s RGLNG project is located in close proximity to associated and stranded gas resources in the Permian Basin and Eagle Ford shale. RGLNG and its associated Rio Bravo Pipeline, originating in the Agua Dulce market area, are well-positioned among the second wave of U.S. LNG projects. The company believes the Port of Cork facility could support imports of up to 3 million tons per year 3 million tonnes per year (mtpa) — or more than 394 million cubic feet per day (MMcf/d) — from RGLNG.
In December 2016, NextDecade announced it had signed a Heads of Agreement with FSRU provider Flex LNG for the joint development of a full value chain infrastructure solution using FSRU and dockside regasification import technology. Flex LNG will be supporting NextDecade to provide a fully integrated regas import solution for the proposed LNG terminal at the Port of Cork. NextDecade is in discussions with European energy companies to enter into long-term purchase contracts for delivery of LNG at the Port of Cork. Additionally, the company will manage shipping from its proposed RGLNG export facility at the Port of Brownsville in South Texas to the Port of Cork.
On June 29, Harmony Merger Corp. filed a definitive proxy statement with the U.S. Securities and Exchange Commission. The definitive proxy statement provides detailed information regarding Harmony’s planned merger with NextDecade, which was subject to approval of Harmony’s stockholders at a special meeting on July 24. If approved by Harmony’s stockholders, following consummation of the merger, NextDecade will be a publicly listed company.