This news is classified in: Traditional Energy Oil and Gas Natural Gas & LNG
Apr 25, 2017
NextDecade, LLC (“NextDecade”) announced today that it has entered into an agreement with GE Oil & Gas to advance its liquefied natural gas (“LNG”) export projects and associated pipelines in the State of Texas. NextDecade has named GE Oil & Gas as the exclusive supplier of gas turbine and compressor equipment for the liquefaction trains of the Rio Grande LNG project and the associated Rio Bravo Pipeline.
“We believe GE will add significant value as we work to make Rio Grande LNG one of the most competitive liquefaction projects in the world. The addition of GE Oil & Gas reaffirms our commitment to use proven technology to provide our customers with low-cost, reliable LNG.”
GE (NYSE: GE) is a leading provider of gas turbines to the LNG industry, with systems operating in LNG trains around the world. The gas turbine and compressor equipment supplied to NextDecade will come with long-term services, life-cycle maintenance agreements, and GE performance guarantees. In addition to technology and services, GE Oil & Gas is providing NextDecade with a common equity investment, and is granted the right to invest up to a specified amount in project-level equity and debt financing for Rio Grande LNG at the time of final investment decision (“FID”).
NextDecade is a leader among the second wave of U.S. LNG project developers, deploying a competitive approach to the global LNG markets. It is offering customers access to an attractive location in the State of Texas, developed by world-class partners and supported by proven technologies and flexible commercial solutions.
“NextDecade is delighted to welcome GE Oil & Gas as both a shareholder and exclusive supplier to its Rio Grande LNG and Rio Bravo Pipeline projects,” said Kathleen Eisbrenner, NextDecade Chief Executive Officer. “We believe GE will add significant value as we work to make Rio Grande LNG one of the most competitive liquefaction projects in the world. The addition of GE Oil & Gas reaffirms our commitment to use proven technology to provide our customers with low-cost, reliable LNG.”
On April 18, 2017, NextDecade announced that it had entered into a definitive merger agreement with Harmony Merger Corp. (NASDAQ: HRMN, HRMNU, and HRMNW) (“Harmony”). Harmony is a publicly traded special purpose acquisition company (“SPAC”) whose objective is to take a company public via a reverse merger. The proposed merger, which was first announced on March 13, 2017, is expected to close late in the second quarter of 2017. Consummation of the proposed merger will result in NextDecade becoming a publicly listed company.
Additional details of NextDecade’s agreement with GE Oil & Gas will be provided in a definitive proxy statement to be filed by Harmony with the U.S. Securities and Exchange Commission (“SEC”) in connection with NextDecade’s planned business combination with Harmony.
